Have you heard of Google Adwords? Probably you are already a little familiar with the Internet's most powerful tool for promoting your business to the largest community of Internet users in the world. There is no bigger opportunity to reach out to customers all over the Internet than Google and its search partners. Using Adwords effectively can make your site pay for itself and earn you huge profits, but if you don't really know what Google Adwords is and how it works, you may waste your ad money on subpar results.

The first thing you need to do to write effective ads for Google Adwords is to determine what your visitors are looking for when they do their Google search. You want to make sure you attract the customers who will find the content they want on your site. If you get inside their heads, you'll know what they need and you will develop a better rounded keyword strategy.

You still start with keywords before you use Adwords. Look at the keywords you have on your website right now. Use WordTracker to find additional options and long-tail keywords that place your site in a unique niche. Make the list of keywords as long as you can. Later, as you narrow down your list of keywords, you will find a few high-performing gems that are perfectly matched to your content. Right now, just get all the keywords you can. The match between keyword and content that bumps up high Click Thru Rates (CTR) and conversion rates comes in Step #2.

Don't try to use all your keywords all at once. After you set up your Adwords account, Step #2 is to begin bringing a manageable list of search terms from your comprehensive list of keywords into your campaign. Create that first ad from the most promising keywords. Write just one more ad with the same keywords but different ad copy to see what really encourages your CTR. Making the ads slightly different helps you establish which wording gets you more traffic for your money. You will repeat this process over and over again as your AdWords campaign matures. You will find small changes in wording, punctuation, and capitalization that bring in incremental improvement?and sometimes dramatic improvement?in your click thrus and conversions.

Step #3 is to run the numbers to make sure you are using your ad budget wisely. Don't spend your entire advertising budget before you have fine-tuned your ads. For some niches, just $100 a week will get you almost nowhere. For other niches, that same $100 a week will make an immediate difference in your site's visibility. But no matter how much or how little you spend, check your returns against your investment. Google Adwords lets you to do this by setting goals, such as number of units of product sold. Careful attention to financial results tells you whether you are making your money back, and by how much.

A good rule of thumb for a successful Adwords campaign is making at least 50% on your money. A 50% return on investment (ROI) is enough to take a profit and fund future growth. Keep close tabs on your ROI and you can expand your revenues and your budget, growing your site with the sales you get through Adwords.

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