The Meaning of AdWords

AdWords is Google’s text-based system for advertising on its site and its partner sites is called Adwords. The service allows you to create your own ads, choose keywords to help match your ads to your audience, and control the cost of your advertising—you pay only when people click on your ad (a cost per click plan). Anyone wishing to promote a product on Google can enroll in this program.
The AdWords concept is simple: you create ads that Google shows alongside regular search results. Your ads appear when somebody searches for keywords you’ve told Google you want to be associated with.
AdWords may also be a good choice when you have just a few dollars for reaching your audience. You can advertise on Google for as little as $1.50 a month. Google charges just $5 to sign up for AdWords, and after that, you can set a budget as low as five cents per day. It costs more to send five snail-mail letters a month.
The confusing part about AdWords is that Google doesn’t charge a set price for ads. Instead, the company lets you bid on the keywords that you want to trigger your ads. If you bid higher than everyone else who’s bid on the same keyword, your ad is likely to appear near the top of the sponsored links.