One of the popular and effective methods of online advertising is Pay Per Click advertising. In this method, advertisements in the form of links are placed in search engines and visitors clicking those links are diverted to the corresponding websites. Advertisers pay for such links at pre-fixed rates on pay-per-click basis. It is likely that advertisements paid at higher rates will appear above others in the search engines and they also appear more frequently.

A PPC campaign works on the basis of bidding where the advertiser bids for his advertisements to be displayed in search engines. The publishing company ranks the advertisements according to their bids and the advertisements are shown according to their rankings. Therefore, if the advertiser bids more then the advertisement will automatically be visible at the top of search results. These forms of online advertising services are provided by PPC search engines as well as advertising networks.

Google Adwords

'Google Adwords' is the most popular PPC campaigns that are run on the Google search engine. By making a small payment of $5 as joining fee, anyone can avail the Pay Per Click advertising facility. But websites containing adult materials are prohibited from availing the services of Google. After enrolling into this project one has to write the context of the advertisement, then decide on CPC or cost per click rate. After these two processes are done the advertisement is instantly loaded online.

A large network of websites has been enlisted by Google to display these advertisements, such as Netscape, Ask Jeeves, Earthlink, Compuserve, Dealtime, AT&T Worldnet etc. Other than these, the PPC advertisements also appear in websites that enroll with Google Adsense and on blogspot blogs. These advertisements are displayed only with relevance to the content in the websites or the blogs. All these measures are implemented to ensure quality traffic.

Some of the benefits offered by 'Google Adwords' that advertisers can decide are the rate at which pay per click to function, which websites to showcase advertisement, comprehensive report analysis of campaign etc. Moreover, Google constantly monitors the accounts and accordingly increases or decreases bid rate as per the competitive base growth.