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Google Adwords
AdWords is Google's flagship advertising product, and main source of revenue. AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.
Pay-Per-Click advertisements (PPC):
Advertisers specify the words that should trigger their ads and the maximum amount they are willing to pay per click. When a user searches Google's search engine on www.google.com, ads for relevant words are shown as "sponsored link" on the right side of the screen, and sometimes above the main search results. The ordering of the paid listings depends on other advertisers' bids (thus the system is classified as P4P) and the historical click-through rates of all ads shown for a given search. The auction mechanism that determines the order of the ads has been called a "generalized second price" auction. It is a variation of the Vickrey auction. Next...
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