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 fundamental strategies for building a successful campaign that applies to everyone using Ad words, regardless of what their niche is. Below are some essential tips you can use to get the most out of Google AdWords:

1. Set-up your account with the Adword's Wizard. Creating a Google Adwords account is easy with the Adwords wizard. The wizard will show you the basics of all your account management tools.

2. Produce effective ads. Your ad needs to contain certain words and elements in a specific format 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 keywords appropriate for your niche. 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. Master 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 an option to exclude certain words from your campaign by using the negative match. You may want to do this so that your ads will not run on users' computers who typed in the excluded words.

5. Create a budget. Google allows adwords users to limit their spending by specifying their budget. You can enter in the total amount you want to spend each day and Google will deduct this balance from your account. Work with a small budget initially and increase it as you gather more data about 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.