Google Adwords is a great way to advertise your business or specific products and services. It allows you to create adverts that are triggered by someone doing a search for the keywords you have bid on.
Although Adwords can be very effective, it can also be very expensive, especially if you are bidding on competitive keywords and phrases and targeting generic locations. You need to be able to set the Adwords campaigns correctly to cut down on wasted clicks. If you are targeting too many generic phrases you may find that you are having clicks through to your site (that costs you money) that are never going to convert as you do not offer what the customer is looking for.
There are many ways to reduce your spend on Adwords whilst still receiving a good number of clicks, you just need to qualify the traffic to your site.
Checking bounce rates etc will help you establish which of your keywords are working and which are not.