Google, the world's largest search engine, started Adwords in order to give business and website owners an opportunity to purchase advertising on Google's massive network.

Adwords can advertise your ad in two places: Google Search and Content Network.

It can be used to instantly generate targeted traffic to your website or landing page by bidding on specific keywords or key phrases.

There are a few pre-requisites to starting Google Adwords:

A. Create a new Adwords Account or link it to an existing Google Account.

B. Set Country and Language.

C. Set Payment and Billing Preferences.

D. Start New Campaign and Set Daily Budget

STEP 1: Keyword Research

Keyword Research is absolutely crucial. It helps discover the different keywords or key phrases by which people are currently typing into search engines to find information on a particular topic or solve a specific problem.

Example Keywords: This article is a beginners guide to Google Adwords. A few relevant keywords to this topic could be, adwords tutorial, adwords for beginners, adwords learn, adwords basics, google adwords how to, adwords how to, etc...

Tools Needed - WordTracker.com or KeywordDiscovery.com or Google Adwords Keyword Tool.

STEP 2: Clustering Keywords or Key Phrases into Ad Groups

Think of this step as emptying a bag of candy on the floor and grouping them by color. Group all the reds together, greens together, blues together, so on and so forth.

Keyword clusters as very similar. They must have the same intention and root word. People make typos while searching all the time. These are potential keywords too.

Example Ad Group 1: adwords tutorial, adwords tutorials, adwords tutor, google adwords tutorials, google adwords tutorial, google adwords tutor, gogle adwords tutorial, adwords tutrial, adwords tutoral, etc...

Example Ad Group 2: adwords basics, basics to adwords, google adwords basics, adword basics, adwords bascs, etc...

Tools Needed - Microsoft Excel or any spreadsheet program

STEP 3: Write Ads for each Ad Group

Write two ads for each Ad Group to test and see which has better CTR. (Click-Through-Rate).

Keep the following points in mind when you write an Ad -

Title: Must contain the searchers exact Keyword or Key Phrase

Description Sentence 1: What are you offering or What is the benefit?

Description Sentence 2: Price and Call To Action

Display URL: www.YourWebsite.com

Destination URL: Targetted Landing Page URL. It can be in a sub-directory of Display URL.

Adwords has an intuitive online system that takes you through these steps and saves your progress stage-by-stage.

Once you get used to the online system, you could download a free Google software called Adwords Editor, which can be installed on your PC or Mac.

The Adwords Editor is especially useful to manage multiple accounts, bulk upload ads, keywords, automatically sync with your online account, creating project backups, etc... It basically makes life a lot easier! :)

Google Adwords also comes with many advanced tools (free) to Optimize Your Ads, Analyze Your Ad Performance and Optimize Your Website.

I hope you find this article useful.

Have a nice day!