Google's text-based system for advertising on its site and its partner sites is called Adwords. The service allows you to create your own ads, choose keywords to help match your ads to your audience, and control the cost of your advertising. Google AdWords ads connect you with new customers at the precise moment when they're looking for your products or services.

The true beauty of AdWords is that the sponsored links are every bit as relevant as the regular results. AdWords may also be a good choice when you have just a few dollars for reaching your audience. The confusing part about AdWords is that Google doesn’t charge a set price for ads. Instead, the company lets you bid on the keywords that you want to trigger your ads. If you bid higher than everyone else who’s bid on the same keyword, your ad is likely to appear near the top of the sponsored links.

Google Ad Words is a wonderful and cost effective way to advertise and has great flexibility on the part of the advertiser. The user she can make it running in minutes and can change ads whenever he feels he is not getting appropriate results ,after tracking the response of the visitors and the conversion rate. However testing keywords and ads to improve the conversion rate is a never ending process and one has to be very selective and alert in choosing the right ‘keywords’. To make your ad word campaign successful and worth spending , here are some keen facts and suggestions to be considered while developing ad word advertisements.

Always be very specific: You should be very specific while choosing your keywords in the ads because being general in advertisements will bring traffic to your site but not many actual buyers in other words the conversion rate will be very less or your return on investment will be less.

Use square brackets: Use square brackets “[ ]” around your keywords that you want to target the most because by doing this your ads will be shown only when searches are made that match your keywords or phrases bracketed exactly

Link to exact pages: Always link to correct pages for example if you are advertising a particular product then link to the page in particular that is selling that product and not to the site’s homepage.

Offer immediate benefits: Offer the benefits that your product will give the consumer because many times users are looking for those benefits and will be induced to your site.

Make multiple ads: Always make two or more copies of ads as you might not know what might click up, constantly monitor your ads and see which one is gaining pace and remove or change the lesser responsive ad. This is an ever going process to reach the maximum potential customers and will go on and on.

Record the ROI: Record the return on investment of each ad to keep your expenses in your pre decided budget and update or change low ROT ads simultaneously. ROI is the base for which you are planning ads and it should not be under looked. Google offers the stats free for the ad words, hence you can use it and calculate the ROI and act accordingly.

Use provoking words: Use provoking words that instantiate action of the user like free, free shipping, special offer, limited time offer, tips, tricks etc. These types of words actually attract the users but make sure that the words are specific to your business otherwise they can be removed by Google.

Include Price Quotes: A wise and proven selling technique is to give a hot price and that’s what works in ad words too. If you are featuring a particular product on your site then you must mention its price in your ad .

Avoid double meaning words: There are words and phrases that mean completely different things depending on the target audience you're trying to reach. These words should be avoided. Be sure and examine your keyword list for any words that could take on a different meaning than what makes sense for your business. The best way to figure this out on your own is to simply do searches at the major search engines for each of your keywords, and see who else is in the result set with you. Then end up finally selecting the keywords that fit your purpose and relevance for the campaign.

Changing the target URLs of your ads within your AdWords campaigns can really take a toll on your earned rankings within AdWords. As we all know, Google uses a ranking algorithm within its paid listing program which looks at both CPC and CTR, when determining rank. Ads over time can outrank other ads even though they are paying a lower CPC, if they have a higher CTR. By changing the ad, the CTR history is wiped out. By losing that CTR history, you can dramatically affect your ad's ranking.

A change to URL will get you to loose your history. The better way to go would have been to add a new ad with the new URL, then waiting until it gets the same CTR and position than the old one and then deactivating the old one.

Your goal to use Ad Words is to increase Return on Investment, not to increase your traffic. It's more valuable to you, as an advertiser to receive only 10 new visitors in a month if they're all qualified and likely buyers, than it is to pay for 1,000 visitors a month that found you by mistake. You can achieve it by targeting at the right audience and selective very specific keywords and constant monitoring.