AdWords:
- Google’s text-based advertising system. It is cost-per-click (CPC) advertising and publishers pay only when users click on their ad. It has cost-control features that can set daily budget and limits.
Many businesses use AdWords heavily to improve their rankings in search engines. Some companies have entire teams devoted to search engine marketing and related search engine optimization. On the other hand, some smaller businesses rely on outside firms to handle all their SEM efforts.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine

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