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AdWords is Google's flagship advertising product and main source of revenue. AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines.

It isn't just small businesses that are flocking to Google — even the struggling automakers are spending a larger portion of their budgets on Google.Google is dominant because its computer algorithms provide businesses with such specific information about searches.

Google AdWords has by far the widest coverage of any of the providers, allowing advertisers to reach a wide market using just one system. This coverage also makes it the most suitable for specialised businesses, who would not receive much search traffic from the smaller PPC providers. The minimum cost per click for a keyword can be a little as 1c, which can make AdWords suitable for editorial or low order value websites, where the 25c minimum cost per click required by the other providers would not be so cost-effective.

When it comes to advertising on the web, you just can't argue with the numbers. A $7 billion market today is expected to grow to $18.9 billion by 2010. Jupiter Research also estimates that search advertising will be a larger share of the market than display advertising by 2010. These phenomenal numbers are due largely to Google, which has changed the way the world...