As you know, when you use Google to search for something, you are searching using one or more words to try to find information. As a business, you might want to advertise your product or service if someone is searching Google using a word or phrase that is relevant to your business.
For example, someone searches Google for “devices that save water“. As a business, if you have a product or service that you want to promote to people that want to save water, then you can use Google Adwords to target these customers.
As an analogy to this, think of how you advertise on a directory service. First, you must decide what classification (category) you want to list your business. You pay for listing your business under a specific category and for any additional categories you decide to also list your business. Your business would be found by a customer if the customer searches the directory listing service by category where your business is listed. You can then pay the directory listing service extra money for making your business advertisement stand out by doing things such as bold, color, borders, pictures, etc.
The same happens with Google. Google Adwords are ways to reach your target audience. You select words and phrases that are important and Google will charge you every time a person views your advertisement (this is called cost per impression or CPM) or every time someone clicks your advertisement (this is called cost per click or CPC). You can also enhance your ad by paying additional money to get your ad highlighted or moved to the top of the list of advertisers.
Other features of Google Adwords include limiting your advertisement to certain regions (such as only displaying your advertisement to Canadian customers since your product is not relevant to overseas customers). You can even target your ad to specific devices (such as only to show ads on mobile devices).
This is a powerful feature in maximizing the effectiveness of your advertising in Google by reaching a very narrow (or broad) set of internet users. Furthermore, Google Adwords provide you with powerful analysis tools that show you how often your advertisement has been viewed and clicked and other information on the audience that your advertisement has reached.
Be very careful though with Google Adwords because choosing Adwords that are too generalised could potentially expose you financially to high ad costs (although with Google Adwords you can limit your daily and weekly spends). Seek professional assistance from companies such as Rapidpage who can help you maximize your results for your advertising budget as well as showing you techniques and strategies for bringing in more visitors to your website (more eyes on your pages and visitors through your virtual store).