Google AdWords is the former name of Google’s advertising platform, which has since been rebranded as Google Ads. It is a pay-per-click (PPC) advertising system that allows businesses to create and display ads on Google’s search engine results pages (SERPs) and other websites that participate in Google’s ad network.

Here’s how AdWords (now Google Ads) works:

1. Advertisers create ads: Advertisers create text, display, or video ads that include a headline, description, and display URL, and choose the keywords or target audience that trigger their ads.
2. Bids are placed: Advertisers bid on the cost-per-click (CPC) they are willing to pay for each click on their ads. The CPC is determined by the competition for the keywords or audience they are targeting.
3. Ad auctions are held: When a user enters a search query or browses a website that participates in Google’s ad network, an ad auction is held to determine which ads are displayed. The auction considers factors such as the advertiser’s bid, ad relevance, and ad quality score.
4. Ads are displayed: The winning ads are displayed on the SERPs or websites, usually at the top or bottom of the page, and are labeled as “sponsored” or “ad”.
5. Ad performance is tracked: Advertisers can track the performance of their ads, including clicks, impressions, click-through rates (CTR), conversions, and cost-per-conversion. This allows them to optimize their campaigns for better results and ROI.

Google Ads offers a variety of targeting options, including geographic location, language, device, time of day, and audience demographics and interests. This allows advertisers to reach highly specific and relevant audiences with their ads.

Google Ads can be a highly effective way to drive traffic, leads, and sales for businesses, but it can also be complex and competitive. Many businesses choose to work with experienced Google Ads professionals or agencies to manage their campaigns and optimize their ROI.