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As soon as you log on to Google AdWords, you will encounter a large number of very useful tools. Adwords tools enable you to proof your ads for errors, choose their placement, optimize your content, and generate an incredible number of useful reports. These reports enable you to assess how your ads are performing against other sites, or in their chosen demographics, and a whole lot more. But probably the most powerful tool you will find is the Google Adwords keyword suggestion tool, an indispensable aid that uses ad data to generate a list of powerful keywords along with their recent search data and cost.

Your first step is to come up with your own list of some basic keywords. This list of no more than 10 to 15 words will provide the AdWords keyword suggestion tool the data it needs to generate new search terms and phrases for you. You can, of course, find these keywords directly on your web pages, but Google can do that for you automatically. Sometimes the best way to start is to brainstorm you own list of terms you think your most profitable visitors would search for if they wanted the content your website provides.

Next, enter your list into the keyword suggestion tool, one word or phrase at a time. You could enter multiple keywords all at the same time, but if were to do this, there’s a high probability the suggestion tool will return a list of hundreds of keywords that don’t really relate to your site. Usually it is a great deal more efficient to limit yourself to entering just one keyword at a time. Allow the keyword suggestion tool generate related terms that you may be able to use.

Whenever you enter a word or phrase into the keyword suggestion tool, it will come back with other keywords or phrases that match websites with similar content. It will also find keywords and phrases from the Adwords campaigns of other site owners who bid on the some of the same words you chose. The suggestion tool estimates traffic per month, tells you how much competition there is for the word or term, and gives you current prices for placement at various levels of the page.

Moreover, the Google Adwords keyword suggestion tool provides you with several dozen more options to get even more useful information about your keywords. The tool allows you to generate monthly traffic charts. These tools tell you how the average monthly popularity of your keywords rises and falls throughout the year. Adwords will generate an estimate of the position of your ad on the page at various bid prices, and you can even retrieve an estimate of the number of clicks you can buy for your budget dollars.

One thing you will learn quickly is that each of these bits of information is equally important in choosing your keywords, but it is still up to you to choose select words that you know are valuable to your service or product. Don’t choose a low competition, high volume phrase just because it is cheap, if it does not help you sell your site. That would be just throwing your money away. But if you do your research and then still stay creative, you can ensure that every keyword you use in your campaign will drive traffic to your site.

Justin Harrison is a leading Internet Marketing consultant responsible for the Internet Marketing strategies behind some of the biggest online brands including Amazon, BBC, MasterCard and many others.