What is Google Adwords and How Does it Work?

If you are like many business owners, the idea of Google Adwords may sound both enticing and terrifying to you. As a matter of fact, it can help your business grow substantially. There is a possibility that you can invest hundreds of thousands of dollars, and it would not benefit your business even a little if incorrectly executed. I’m not going to discuss the issues and promises that come with Google Adwords. After all, they are not aspects that describe this platform best. What I am going to discuss is the basics of Google Adwords. What is Google Adwords? How does it work? You will have a good understanding of these questions when you finish the article. 

What is Google Adwords?

Google Adwords is an online advertising platform where people can advertise their products and services. It has been renamed to Google Ads since 2018. Google Adwords is crucial for its users and is indeed one of the primary revenue sources for Google itself. 

The headquarters of Google Adwords is in California, US. On top of that, it has secondary offices in Singapore, Hyderabad, Dublin, and New York. Google Adwords prices its users based on the pay-per-click method. This method is also known as the cost-per-click method. Each time when web-user clicks on an ad, the owner of the ad pays Google some amount. Pay-per-click is calculated by dividing the cost paid for the ad by the number of clicks. 

The History of Google Adwords

Now that you know the answer to “What is Google Adwords,” let’s get familiar with its brief history. Google Adwords was established in the year 2000. Back then, Google was charging its advertisers on a monthly basis. A campaign management service called Jumpstart was initiated by Google in 2005. Google introduced it to people who were eager to handle their own advertising operations. 

Google advertising professional was provided by Google in the same year. It aimed to license people and organizations who completed the training and exam of Google Adwords. In 2016, Google announced “Showcase Shopping” ads. With the help of it, advertisers were able to indicate pictures in the search results related to various keywords. The rebranding of google Adwords to google ads occurred in 2018. From 2018 onwards, smart campaigns are offered by Google for small-scale businesses. It, in particular, benefits those who do not have enough time to manage their digital marketing campaign

How Does Google Adwords Work?

what is google adwords

The system of google ads depends on the keywords that are selected by advertisers. Google uses these elements to place the advertisement on pages where they think it is relevant. And every time a web user clicks on an ad, Google gets paid. Likewise, the websites that are involved in this advertising make some profit, as well. 

Advertisers can share their products, internationally, nationally, and locally, thanks to Google Adwords. Bear in mind that the text advertisement of Google is pithy. You can notice a maximum of 15 characters with 2 URLs, 90 characters with two descriptions, and 30 characters with three headlines. From this information, you can understand what an average search result in Google looks like. It is worth mentioning that Google reformatted the ads to expanded text ads. This modification aimed to comfort web users and advertisers. Note that it allows 23% more text.

Features of Google Adwords

When you talk about “What is Google Adwords,” it is not enough for you to just know the definition. You should be aware of its features, too. And one of those critical features is the keyword planner. It is a free tool that provides data around the search queries in Google. The keyword planner also sets up search network campaigns by supplying data for keywords, keyword trends, etc. 

Another very useful tool by google Adwords is google ads editor. It allows advertisers to change and edit advertisements offline. One of the best sides of it is google ads editor is free. It arrives without any expenses together with google ads. This tool also helps you to monitor the performance of your ad, too.

Adwords express, also known as google boost previously, is a feature to support small-scale businesses. To be more precise, it aims to assist such firms in decreasing the difficulty of managing digital marketing campaigns

Google ads manager account is also a tool you must beware of. Formerly known as my client center, it allows advertisers to manage multiple accounts from a single login and dashboard. 

The last tool that I will talk about will help you on Youtube advertisements. Called reach planner, it allows advertisers to predict the reach and extent of video advertisements on Youtube. Thanks to reaching the planner, you can choose your audience and get advice on a combo of video that will assist you in attaining your goals. 

Types of Keywords in Google Adwords

Those who know “What is google Adwords” know the importance of keywords in it, too. And that is what I will exactly talk about now. 

There are basically three types of keywords that advertisers can choose to use in their advertisements. These are broad match, phrase match, and exact match keywords.

Broad Match Keywords

When you use broad match keywords, your ads will be visible to web users regardless of the order of words in the keyword. Let’s say your keyword is “trending Nike sandals.” On this occasion, when web users do a search for “Nike sandals trending,” “buy trending Nike sandals,” etc., will come across your advertisement. From this angle, the potential of broad match keywords is quite huge. Just imagine that even people who are not planning to purchase your product will notice your ad.  

If you want to use the broad match keyword, it is enough to just enter the phrase. No punctuation marks are necessary.  

Phrase Match Keyword

mobile SEO

When you use “phrase match” keywords, your ads will come up in search results for the given word order of your keyword. For instance, let’s say your keyword is “black leather gloves.” In this case, only the searches having this word order will appear when searched by someone. In other words, for “black gloves leather,” your ad will not show up. 

Still, for searches that contain your keyword, your ads will again appear. For example, “black leather gloves for winter,” can be useful in this sense. To use phrase match keywords, you should use it in double quotation marks.

Exact Match Keyword

Lastly, there is the exact match keyword. Your ads will appear for such keywords only when a web user has entered the exact keyword you have used. No additional words or word order modification will work out. For example, let’s say your keyword is “latest iPad mini.” Only the results for the search of the exact phrase will appear in this case. 


Now you have an excellent understanding of “what is Google Adwords” and how it works. As you see, Google has launched some tools, as well, to ease the work of advertisers. So, when using Google Adwords, you will access some extra features, too, which can help you get better results from. I hope you found this article useful. You can check out our page for more related articles that can provide you with helpful information. 

Anar Karimli

Anar Karimli

Leave a Replay

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit