To make right decision which ads should be shown on third party's web pages, Google applies its Page Ranking technology, which is called content-targeting.

The third party will earn shares with Google everytime visitors click on ads.

So, if you have a rich content site, signing up for Google AdSense could be fun. If you are accepted by Google (yes, many sites are rejected by Google!), you will be given a code. All you have to do is just paste code to your HTML page, you decide location and settings.

Everytime your visitors click on ads, Google will charge advertisers for clicks and share them with you.

Copyright 2005 Farid Aziz.

The unique formula of Google AdWords is that you can't reach #1 position only by increasing your bidding price. Google also considers your Click Through Rate (CTR). CTR is a value that represents how many click-throughs (clicks on your ad) you get among your ad's impressions. Too many difficult words..?

OK, let's try it this way... Impressions is frequency of your ad's appearance in search engine's result page. If your ad appears 500 times, than your ad's impression is 500. But, of course you don't get a click everytime your ad shows up. From those 500 impressions, perhaps you only get 1 click. This makes your CTR = 1/500 = 0.002 = 0.2%

The better CTR you have for an ad, lower you have to bid for same position.

That means, Google also rewards good content of your ad. When your ad gets a lot of click-throughs, that means you have a good ad and Google rewards you for that! Your ad is good according to Google if your ad is relevant with content of your site.

In Google AdWords, rich ones don't always win... smart ones do!

Of course there are still a lot of things we haven't touch regarding Google AdWords, but we have to do it later. After all, this is a quick overview for beginners, right?

Copyright 2005 Farid Aziz.