Among advertising networks on the internet, Google Adwords is still the biggest player on PPC advertising. Figure out how to use Google Adwords and you can get a great deal of targeted traffic back to your site or blog. Understanding how Google Adwords works is only a part of being successful with PPC advertising; you'll need to understand how to create effective campaigns, how to develop ad groups, and how to place bids for the right keywords.

No matter what niche you're in or what type of audience you are trying to attract, there are some specific guidelines to follow when using Google Adwords. Below are some essential tips you can use to get the most out of Google AdWords:

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 Adwords wizard will take you into a tour of all basic account management tools; the section wherein you setup your campaign using just a few clicks and where you can choose the regions you want your ads to run.

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 is a proven formula for a successful campaign, and the strategy is still  supported by Adwords experts such as Perry Marshall, author of the book "The Ultimate Guide to Google Adwords" and Peter Kent, author of the book "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. Utilize this tool as much as possible when creating your campaign or even before building up your website or blog.

4. Master keyword matching. The Google Keyword tool allows you to perform broad matches, phrase matches and exact matches for your keywords in your campaign module. This allows you to get additional relevant keywords for your campaigns. You can also eliminate certain words with the negative match; this ensures that your ads will not show up on search results for users who type in that phrase. Keyword matching allows you to refine your campaign so that it is much more targeted.

5. Set up your budget. One of the best feature Google Adwords offers is the ability to specify a daily budget for your campaigns. Just enter the total amount you are willing to spend daily and Google will automatically take funds from your account. Start small and slowly increase your budget amount as you start monitoring results from your campaign. Get some data first at the start of your campaign. You want to know the exact cost of a lead and the actual keywords that convert to a sale. You can then optimize your campaign based on your data and at the same time set a higher budget allowance for even bigger rewards.