Google AdWords is a form of advertising online to generate traffic to your website. Whenever someone may search a relevant search your ads can be displayed for them to see. As well as this, AdWords also allows you to advertise your business outside of Google on the Google Display Network.
When creating a campaign you will need to use keywords or phrases that will trigger your ad to show. These keywords will relate to your business, therefore when someone searches for your keywords or phrases or something similar your ad may show with the results from the search.
To show your ads on AdWords, you will need to set an average daily budget with a set bid for your keywords or phrases. An auction will be run each time someone searches your keywords or phrases on Google, and your bids for this auction will determine which ads appear on the results page.
There are two types of bidding methods. The first is CPM or costs-per-thousand-impressions bid, this is a bid for each 1000 times your ads are shown, this is good for increasing brand awareness. The other bidding method is CPC or cost-per-click, this is a bid for each time someone clicks on your ad, and this is good for generating traffic to your website. The CPC bidding method is the most common as they are charged according to the number of people have clicked on their ad.
The location of your ad all depends on the types of campaigns you are running. Your ads could be shown most commonly on the Google results page and other search sites in the Google Display Network. They can also be shown on websites that people use within the Google Display Network and on mobile devices and computers.