Google Ads previously known as Google Adwords is version of the Google pay per click advertising model. It allows you to display ads which link directly to your website when searches are done for your chosen keywords or keyphrases. These ads are located to the right of the results which Google gives you for a search and they're also displayed on Googles many partner sites which include AOL, Earthlink, HowStuffWorks and blogger. Recently with the launch of Googles Adsense program your ads could also be displayed on websites related to your keywords.
One of these has been mentioned already, it's the Google Ads Discounter feature which will lower your cost per click price to one cent above your nearest competitor to allow to stay ahead of his or her ad. This means that you don't have to be constantly checking if your competitors have lowered their bids in order for you to minimize your price, Google does this for you.
When you create an Google ads, you choose keywords for which your ad will appear and specify the maximum amount you're willing to pay for each click. Remember Googles Ads program uses a PPC model so you only pay when someone actually clicks on your ad and hence visits your website. Adwords enables you to save money as its program Discounter automatically reduces the actual cost per click you pay to the lowest cost needed ($0.01 above competition) to maintain your ads position on the results page.
Other advantages which Googles program has over similar ones include setup time and specific country / language targeting. With Adwords your ads can be live on Google within five minutes of creating them so you can potentially begin to see results immediately, ads on Overture usually go live after a three to five day waiting period. Google Ads allows you to choose who should see your ads from among 250+ countries and 14 languages, this means you have more control over your ads so you can be sure they're only shown to a highly targeted audience which means your more likely to be successful.
One of the most important tips I can give you regarding Adwords is regarding your keyword selection, so pay particular attention to the tips in the next paragraph or so. These are the words which when searched for will trigger the appearance of your ad next to the search results. Choosing the right keywords is imperative to the success of your campaign. A good approach to choosing the right words is to imagine what you'd search for if you were looking to buy a product similar to your own.
The way Google Ads positions your ads is also another great advantage of the program. In Google Ads the position of a certain ad is determined by multiplying your CPC (cost per click) by your CTR (click through rate) and not simply by CPC alone as this would allow the big fish to win all the time.