You bid for phrases used by your target market when searching for your products in Google.
Your ad appears on the right hand pane as a boxed ad, whenever somebody searches for one of the phrases you are bidding for.
You pay each time someone clicks on the ad and goes to your website. This is called a clickthrough.
You can choose the phrases and also target the searches by geographic location. This means if you only want South African searchers to see your ad, it is only displayed when the search originates in South Africa.
The amount you pay for each phrase depends on its competitiveness. The more people that bid on a phrase the higher they are willing to pay for it.
Google automatically spreads your budget over the month during which the campaign is run. As a practical example if your monthly budget is R3000 and each clickthrough bid is R3, you will receive 1 000 visitors from Adwords. Lets say there are 100 000 people searching for your phrases and the clickthrough rate to your website is 10%, about 10 000 people could potentially click through to your website. However Google knows that your budget covers only 1 000 visitors, it will then show your ad every 10th search.
We have researched one of your phrases (at no cost to you) so that you can experience the key phrase research phase of the campaign management first hand. Google makes stats available for the usage of a phrase on a fractional scale with 1 being the highest number. It also shows the average cost per click (what competitors are bidding for a phrase). The phrases constitute South African demand and cost values:
