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.
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 or the relevant local/national google server
(e.g. www.google.co.uk for The United Kingdom), ads for relevant words are shown as
"sponsored links" on the right side of the screen, and sometimes above the
main search results.
The ordering of the paid-for listings depends on other advertisers' bids (PPC) and the
"quality score" of all ads shown for a given search. The quality score
is calculated by historical click-through rates, relevance of an advertiser's ad text
and keywords, an advertiser's account history, and other relevance factors as
determined by Google. The quality score is also used by Google to set the
minimum bids for an advertiser's keywords. The minimum bid
takes into consideration the quality of the landing page as well,
which includes the relevancy and originality of content, navigability,
and transparency into the nature of the business. Though Google has released a list of full guidelines for sites, the precise formula and meaning of relevance and its definition is in part secret to Google and the parameters used can change dynamically.
The AdWords program includes local, national, and international distribution...
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