All about sponsored listings -search engine ad campaigns
website optimization and design
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Sponsored Ad Programs
Those ads you see when you pull up a search result

Starting an Ad Campaign
The major search engines are fairly easy and straightforward for setting up an account to run some ads. You can set a budget to suit your needs, even if only a dollar a day, they want a credit card and just bill as needed to meet the budget. What you are purchasing is the placing of an ad you create on a specific page. Example: You own a sporting goods store in Atlanta, you want to run your ad on the keyword combo "atlanta sporting goods". You simply ad that term to your "inventory" (and create an ad for that specific term) and bid on how high you want to place the ad in the results. It may be that nobody else is bidding on that term (fat chance) and you can bid the minimum of 10 cents or so, or maybe there are several others bidding on that term, so you may have to bid higher to be number one. It is not graven in stone that you have to be the number one sponsored ad for it to be cost effective, but you do want to be on the 1st page of results. 4th or 5th place may yield better results it can vary. Keep in mind, although your ad may appear every time a viewer sees the page (impressions), you only pay when they click on your ad.

Great Benefits 
One of the best things - results are immediate, Google will have your ad up in minutes, Yahoo and MSN may be slightly longer due to their "editorial review process".
For SEO purposes, the great benefit is seeing how many page impressions that particular term gets. For example, in the course of a month, the term "atlanta sporting goods" gets 500 page impressions, you may also have the term "camping supplies in atlanta" and that term gets 3,000 impressions a month. That tells you plenty about what your customers are looking for. Following thru with a good adwords program by examining these trends can make for great success in web marketing. Figuring out what terms your potential clients use to find you is an art and science in and of itself.

Research - Research - Research
Finding those keywords your customers use and updating your site to reflect those trends is a great way to success. You can find companies to manage this for you  for fees such as  a monthly minimum or % of the ad buys.
When you write the actual ad, you may want to use "call to action" phrases such as "buy now" or "sale" or some such. The jury is out on this, but I feel that due to the sophistication of the viewers, I simply state whatever it is I am selling and make it crystal clear what the viewer will see if they click on my sponsored ad.

Check competing sites for keywords they use, either by examining the site carefully, or seeing what terms they advertise on, or using tools that can determine keyword usage and suggested associative keywords.