ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How does Google Adwords work?

Updated on April 1, 2010

What is google Adwords?

When you do a search on google, have you noticed that there are two types of results displayed on any page?  The natural search results cover the majority of the page.  But sometimes there are a couple or more listings at the topmost of the page that is usually shaded in blue.  And of course there is always a list that is on the rightmost side of the page separated by a line.  These are called "Sponsored Listings" which means advertisers pay for those listings every time they get clicked on google search results.  And they pay using Google Adwords.  You can set up your google adwords account in a few minutes.  All you need is a credit or debit card in hand and a few minutes to spare.

1. Create a Google Adwords account

Creating a google adwords account is simple.  Visit and click on the "Start Now" button.  Follow the simple instructions to create a new account.  You will have to create a new gmail account during this process.  Or if you already have a gmail account and would like to use the same email address, just sign in using your login information and you have a google adwords account!  

2. Fill up Account Information:

Once you have created a google adwords account, you will need to fill up the billing information to be able to start advertising.  There are two types of programs that google adwords offers.  One is the prepay method and the other is the post pay method.  In prepay program, you pay a certain amount before hand and then start advertising until the amount is exhausted.  You then pay again for the ad. to continue.  In postpay method, you will charged $1.00 or so initially to verify your credit card details and then be charged automatically to the credit card or bank account on file once the bill reaches a threshold value set by google.  

Usually the first threshold limit is $50.

Once the payment clears, the threshold limit is increased to $100.  

The third time, the threshold limit further increases to $200

The fourth threshold value is $350

The fifth threshold value is $500.  

This is the maximum threshold value that I have reached so far for my monthly budget in advertising my website

I am not sure if there is a higher threshold value or not, but I get charged anytime the value reaches over $500 and under $550. 

3.Setting up your Ad. Campaign

Once you provide your credit card details, you will be taken to the campaign management home page.   Google adwords provides three categories to help you organize your different ads.

1.  Ad. Campaign -  This is a very broad category to generalize the products you have in hand.  For example, if you have clothing, jewelry, electronics, CDs and more to sell -  Clothing could be your first campaign, jewelry could be your other campaign and so on.  You also set up your daily budget and cost per click bid here.  This means that google will not show your ads. when the cost per click bid is higher than what you chose and will stop advertising for the day once the daily budget is reached!

2. Ad. Groups  -  Ad. groups help you further group your ads. within the category.  For example, Clothing could include Mens Clothing, Womens Clothing, Lingerie, Kids Clothing and more...

3.  Then comes the actual Ad.  -  Carefully choose the words to describe your product or service within the character limit allowed for each line.  Always use the specific product page you are advertising about for the destination URL.  "DO NOT USE THE HOMEPAGE FOR THE DESTINATION URL" unless it is required for the ad.

4.   Add Keywords   -   Every keyword you choose would cost you money.  So choose keywords that precisely describe the product or service you are promoting.  If you are selling "Roses", do not use the keyword "Flowers" in the list.  Because every time anyone searches for flowers and not necessarily "Roses" your ad. might pop up.  And if they click on your ad. looking for flowers which could be anything, you get charged!  Of Rose is a flower too, but what is the probability that every person looking for a flower would look for a Rose.  Think!

5.   Save Changes   -   Set up the time that you want to start advertising, which could be a specific time in future or start immediately.  Save your changes.

4.   Review Period:

All Campaigns go through a review period to check if the content is appropriate and within google's policies.  It doesn't take more than a few hours for the review and then your ad goes active.  Shortly from there, you can see your ads. showing up on google search engine results when you type in the keywords that you entered in your campaign!

But it doesn't stop here.  Keep monitoring the performance of your ads and keywords frequently.  Make changes accordingly.  And once your website starts getting traffic, convert the traffic into revenue by using google adsense.  Would be time to get back some of the money spent on google.

Check out my next blog on "How google adsense works" to learn about earning revenue from google.

Tunics from
Tunics from


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)