Let's introduce some concepts before we really start playing with the Google Adwords application. Google has two main "networks" on which publicity can be displayed: the Google Search Network and the Google Display Network.

The Google Search Network

The Google Search Network is a group of search-related websites where your ads can appear, including Google search sites and search sites that partner with Google to show ads, called search partners. Ads are matched to search results based on the terms a person uses to search. With a few exceptions, described below, text ads are the main ad format used on the Google Search Network.

Where can ads appear ?

When you target your campaign to the Search Network and add keywords to your campaign's ad groups, your ads can appear on Google and other search sites based on the keywords you choose:

• On Google search sites: Ads can appear alongside, above, or below search results on Google Search, Google Shopping, Google Maps, Google Images, and Google Groups. Google search results

• On other sites that are part of the Search Network (search partners): Ads might appear alongside or above search results on our search partners' sites, such as AOL. www.aol.com

Sites on the Search Network show mostly text ads, which are typically labeled as "Ads" on Google Search as well as on search partners' sites. Google Images can also include image ads.

Example:

You have a business that offers face-painting services at parties for kids. If you add the keyword "children face painting" to your ad group, and then choose to show your ads on the entire Search Network, your ads are eligible to appear on an AOL search results page when someone types "face painting."

Source: google adwords help

 

Adwords text advertising

It's just text advertising, but even such a simple thing has it's advantages:

• Not pushy compared to banners
• Contextual (relevant for the ongoing search)
• Seamless integration on SERP (you have to look hard just to see it's a yellow/pink background indicating ads
• Better CTR then graphic banners

There is only a limited amount of space available on the SERP (search engine result page), so you will have some competition to be displayed there. This results in a price setting where:

• Price = function of (popularity search key)
• Price setting = an auction

Is paying a good price a guarantea to be displayed ? Yes and No: It's not only the bid price which will determine this. Google will also judge which of the ads are the best match for what the user is searching. So being displayed is

function of (relevance advertising text and bid price)

The Google Display Network

The Google display network consists of affiliate websites agreeing to display Google provided publicity in return for a commission.This will not be text only, but also rich content such as animated banners, video, etc...

How does it work ?

• The Google spider registers the topics covered by the websites participating in the Google Display Network
• Doing so, Google can decide to show publicity which has some contextual match with the subject of the participating websites.
• Google remembers, especially if you are logged in (e.g. gmail), your search interest and search history.
• When you visit websites taking part in the Google display network, you will get targeted advertising, where things such as your location, language, your search history, the topic of the website and many other parameters are taken in consideration to give you a targeted advertising experience