Google Adwords is still the undisputed leader in pay-per-click advertising and traffic generation systems on the Internet today. Use it well and you can get a lot of highly targeted traffic to your websites and blogs. Knowing the basic mechanics of how Google Adwords operate is not enough. You also need to know proven strategies and tactics for a successful PPC campaign such as writing compelling ad copies, developing ad groups and biding for the right keywords. There are basic principles that everyone must follow to use Google Adwords efficiently regardless of one's product and market. Follow these procedures to help you set up an effective AdWords campaign.

1. Use the wizard to set up your AdWords account. If you're new to Google AdWords, you'll find it easier to get through the initial account set up process using the Adwords wizard. The wizard will walk you through all of the basic account management tools; this is the area where you can select the regions you want your ads to run, and set up your campaigns within a few clicks.

2. Produce effective ads. Each component of your ad must follow a particular formula for it to be effective: A keyword or keyphrase must be used in the headline. State a benefit by the second line. Mention special promotions or product features in the third line. Finally, the fourth line must contain a URL link back to your landing page or website. This proven formula is taught by best-selling adWords strategy books; such as Perry Marshall's "The Ultimate Guide to Google Adwords" and Peter Kent's "Pay per Click Search Engine Marketing for Dummies".

3. Use the right keywords. Google provides users with a robust Keyword Selector tool that allows you to generate lists of highly targeted keywords and keyphrases related to your niche. Explore this tool as much as possible when you are setting up your campaign, and even when you are looking for appropriate keywords for your website or blog.

4. Find out how to do keyword matching. You can conduct broad matches, phrase matches and exact matches inside Google's keyword selection tool for your collection of keywords. This allows you to get additional relevant keywords for your campaigns. There is also a feature tied with Adwords called negative match. Negative match allows you to specify words that when entered by someone searching google, will not result in your ad running in the person's web browser.

5. Set up your budget. One of the biggest benefits of using Google Adwords is the ability to set up your own budget. You can enter in the total amount you want to spend each day and Google will deduct this balance from your account. Start small and slowly increase your budget amount as you start monitoring results from your campaign. As you begin to generate traffic, you'll be able to calculate exactly how much it costs to get the type of traffic you want, and even identify which keywords actually lead to a sale or conversion.

Marketing with Google Adwords is a powerful technique that most online-businesses can use to attract more sales. Creating quality Google Ads is one of the best skills to have when using Adwords - and there are several good training resources available online.