Tech 101: Google Adwords explained in 60 seconds

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Tech 101: Google Adwords explained in 60 seconds

If you're trying to get your business known, chances are you'll hear about Google AdWords. So what is it and what does CPC, CPM and CPA mean?

Anyone can use Google AdWords to advertise their business. Web sites that run Google's AdSense display those ads as well as Google's search results. 

There are four key steps in using Google AdWords:

  1. Create a Google AdWords account
  2. Decide what keywords will cause your ad to appear
  3. Set your budget and decide what you'll pay for
  4. Design your ad

In order to use AdWords you'll need to create an account with Google.  Go to and click Start now. You'll need an email address. 

This is also a good time to decide what your advertising budget will be and to think about what keywords you want your ad to appear with.

This is important as you'll want your ad to show up when people are searching for specific things.

For example, if your business repairs car and truck tyres and is based in the Perth suburb of Cloverdale then you'll want to ensure that your ad appears whenever some searches for "tyres", "wheels", "tyre repairs" and "Cloverdale".

In order to ensure you get other potential customers in the area you might expand the keywords you want your ad to appear with to include the adjacent suburbs in the Belmont locality.

Like any form of advertising, it needs to be targeted in order to be useful.

Setting your Google AdWords budget

Now you can set your AdWords budget - the ads aren’t free. You’re only charged when someone actually clicks the ad. You can set your budget so that you only spend a certain amount each day.

As for how you're charged - that's up to you. Google will charge you for your ad based on what customer action you want to pay for.

You might choose to pay for when someone clicks on your ad (cost-per-click or CPC), how frequently you ads are shown (cost-per-impression or CPM) or how many conversions you receive (cost-per-acquisition or CPA).

The ads you create are limited to some specific sizes that are defined by the Interactive Advertising Bureau.  

Ads consist of 25 character headline and two additional text lines consisting of 35 characters each. You can’t use other company’s or trademarked names in your ads.

Google has prepared a useful Help site for Adwords on the support site. 

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