Google AdWords is Google's main advertising product and main source of revenue. Google's total advertising revenues were USD$28 billion in 2010.AdWords offers pay-per-click, i.e, cost-per-click (CPC) advertising, cost-per-thousand-impressions or cost-per-mille (CPM) advertising, and site-targeted advertising for text, banner, and rich-media ads.
The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one headline consisting of 25 characters and two additional text lines consisting of 35 characters each. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.
Sales and Support for Google's AdWords division in the United States is based in Mountain View, California, with major secondary offices in Ann Arbor, Michigan, the company's third-largest US facility behind its Mountain View, California, headquarters and New York City office. Engineering for Google AdWords is based in Mountain View, California
The original idea was invented by Bill Gross of Idealab who, in turn, borrowed the idea from the model of the Yellow Pages. Google wanted to buy the idea but a deal could not be reached. Not wanting to give up on this form of advertisement, the company launched its own solution, AdWords in 2000.AdWords followed a model that was significantly similar to Bill Gross' creation which led to legal action between the two parties. Eventually the dispute was settled out of court.
At first, AdWords advertisers would pay a monthly amount, and Google would then set up and manage their campaign. To accommodate small businesses and those who wanted to manage their own campaigns, Google soon introduced the AdWords self-service portal. Starting in 2005 Google provided a campaign management service called Jumpstart.Google's Jumpstart program offers free telephone support from a Google specialist to help users start their online advertising campaign.
In 2005, Google launched the Google Advertising Professional (GAP) Program to certify individuals and companies who completed AdWords training and passed an exam. Due to the complexity of AdWords and the amount of money at stake, some advertisers hire a consultant to manage their campaigns.
In 2008, Google launched the Google Online Marketing Challenge, an in-class academic exercise for tertiary students.Over 8,000 students from 47 countries participated in the 2008 Challenge, over 10,000 students from 58 countries took part in 2009, about 12,000 students in 2010 and almost 15,000 students from 70 countries in 2011. The Challenge runs annually, roughly from January to June. Registration is at the instructor rather than student level.