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You can pay to place ads around search results on relevant keywords; or you can place them on other people’s web pages – mostly those with related content – or both. Google calls their service Adwords and other search engines have similar services.
The flip side is that you can host other people’s ads on your pages and get paid for it. Google calls this service Adsense and other search engines have similar services.
There is a lot of useful information on the Google Adwords site about advertising
The key thing is to test everything and use the results to improve click through rate and conversion. For each ad group, split test your ads. That means running two ads for each ad group, with the equal display setting, varying the headline or the wording between the ads and keeping the one that works best. Group your keywords and create separate ads for each group.
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