Google AdWords -
AdWords is an advertising service for advertisers offered by Google. It is the advertiser's side of the
AdSense program. Adwords can place
advertisements both on Web pages and in SERPs (Search Engine Results Pages). Advertisers bid on different
keywords to
determine the price of the advertisement. Google takes clickthrough rate (CTR - percentage of clicks per impression) into consideration in addition to advertiser's bid to determine the ad's relative
position within the paid search results. Google applies this weighting factor in order to feature those paid
search results that more popular and thus presumably more relevant and useful. Google has also started taking into
account the quality of the landing page and applying a quality score to the landing pages.
Adwords and Adsense advertisements do not affect the positioning of a Web page in Google SERPs (search results
pages). AdWords is related to Search Engine Marketing and not directly to Search Engine Optimization, though both
involve keywords and other common technical entities.
Adwords is based on a Pay Per Click business model (PPC). The advertiser pays an amount for each click, regardless of
whether the visitor buys anything.
Google reduced the size of the clickable area in advertisements at the end of 2007. The purpose was to reduce the
number of accidental clicks and improve the conversion ratio (number of sales per click through) for advertisers, so
that they would not be paying for visitors who did not want to see their page.
This resulted in a loss of click through rates for some Web sites and for Google. Speculation about this fueled a
drop in Google share prices, aided by half truths provided by an investment consultancy. Google earnings remained high,
confounding the predictions, but share prices have not fully recovered. In fact, there probably has not been a
substantial permanent drop in CTR.
Note - Definitions of Search Engine
Optimization terms are based on inferences from common usage and definitions given by other sources. Conclusions about
search engine behavior are based on understanding of the behavior of the most popular search engines. Both are subject
to error or may change. Search engine company management may define or use a term or set or change any policy in any way
they see fit, and may make these definitions and specifications public or not. These decisions and definitions are
beyond our control. Notice: Copyright
All materials are copyright 2008 by Ami Isseroff. All rights reserved. These pages may not be reproduced in any
form in electronic or printed media without express written permission from the author.
SEO Glossary
