Google has given Google AdWords as a gift to the internet marketers, which is the most popular advertising medium. Google AdWords is a form of PPC (Pay-Per-Click) campaign, where you estimate the budget about how much you can pay for a click and how much you can spend money on daily basis.
You can set the maximum amount of money in Google AdWords campaign; it is very helpful in controlling your expenditure. Those advertisers, who bid high on a keyword and have higher budget than other, are displayed in top in sponsored results of Google. Google AdWords is like trial and error, you can modify the keywords that are not working well or not providing expected results. It takes time to learn about Google AdWords, how expected results can be gained and how profit can be earned at maximum etc.
To get success in Google AdWords campaign you need to choose your keywords very wisely and relevant to the ads you are going to place. Do not involve yourself in any bidding war. Place a bid that is suitable for you. When your ad has started to give you profit, you can increase your bid with the success of AdWords campaign.
You can run many different AdWords campaign at the same time. You can test the effectiveness of a keyword by running two different campaigns with modified keyword and original keyword.
Definitely if conversion rate is high, then your business will earn profit by making sales of their products and services.