It's a way of placing adverts on google's search result pages, or on other web-sites that have opted into google's advertising network. You can make money from it the same way as you can from any other kind of advertising - by letting people know if you have a product or service to sell, or make commission payments from.
The Google Advertisement Network is made up of two portions, AdWords and AdSense. Without one, the other is nothing. You know all the advertisements you see on Adsense, those advertisers are Adwords members. When you sign up with Adwords, you can place your advertisement in Google Network so that Adsense Publishers can host those banners or text ads. Google earns a commission from the Adwords Advertisers. When if you have a new website or something to sell, you can use Adwords as an advertising platform to get the word out about your product. With Adwords, you can decide how much you want to spend on advertisement per month and how much you willing to pay for each keywords. You do not make money directly from Adwords but when people click on your ads, they will go to your website and there be able to see what you have to offer. From there, they may be interested in what you are selling and buy from you and that is where you earn. The key to getting visitors on your website is to get people to know you have a website. It can take months to get listed in search engines and Adwords can help you jumpstart on getting some eyeballs and hopefully traffic to your site. Of course, how much you are willing to spend would determine how successful your promotional campaign is. Only when someone clicks on your ads that you pay Google who would in turn pay the web site owner where your ads was listed on.
Adwords is the biggest scam on the internet..in short; Google has devised a scheme whereby they charge advertisers at the moment a person clicks on that advertisers ad. regardless if the person buys or not. but as it happens, most people can figure out wich keywords are more expensive than others and guess what, im a Google shareholder (for the purpose of this example) I always click on any site where I see google ads - how many clicks can I perform a day? maybe you'r ad will be clicked by me, or someone like me with no intention on buying what your selling..and theres nothing you or Google can do to stop me from Clicking as many ads as I want. :-/
Don't be a numpty - there's nothing at all wrong with Adwords. You have no idea what you're talking about (as has been repeatedly pointed out on DP) and you seem to be on some kind of personal crusade to stop people using Adwords, though why they've offended you, I have no idea. Adwords is very effective at spotting fraudulent clicks, and I have never had a problem with it. If you have, then perhaps you should discuss it with them, rather than deliberately misleading people with your unfounded accusations. Pay-Per-Click, and particularly Adwords, can be a very effective way of generating business profitably, if you're willing to experiment, and I'd recommend it to most people...
Adwords has it's good and bad points. As for experimenting that cost a lot of money. Most business can't afford to experiment. If you want instant traffic then adwords is the way to go.
It doesn't need to cost a lot of money - I manage accounts that spend as little as £5 per day, and they get results that they are more than happy with...
Two things about adwords it brings you instant traffic and it cost money to use. That is the essence of adwords.
I've worked with one client on devising the best system for click frauding AdSense. While result was in general unsatisfactory, we've learned that AdSense/AdWords are far more suspectible to click fraud that it can be imagined. Still, it is a good system overall, and movidalatina --- I'd give you a negative if it didn't cost me precious reputation point
Ganesh, Adwords is a marketing program belonging to Google. I must tell you though that just yesterday 5/18/07 in the USA Today newspaper a report said that 15-20 % of the advertising traffic is pathological. meaning Click Fraud. there are members here that make a living marketing websites and so they are totally in favor of Google and it is in their best interest for everyone to use adwords. but you must read.pros and cons. here is a link to a $93million click fraud lawsuit http://www.gearlive.com/news/article/google_inc_being_sued_for_click_fraud/