Paid Search is the fastest way to get prospective customers to your site. Paid Search are the ads that show up on every search engine, usually at the top and to the right of the search engine results page.
Search is contextual. Let's say you are searching for a Taxicab in Chicago. You go to Google and you type "taxicab in chicago" in the search box. The results will be for taxicabs in Chicago.
Companies pay to show you ads and those ads are based on the words you typed in the search box. They then write ads to cater to that search phrase. Hence, the ads you see will usually be from taxicab companies in Chicago.
If you are selling products and you are advertising individual products then make sure your ads take prospective customers right to your product pages. If you advertising a Plasma TV don't link the ad to your home page or your DVD Player page. If you are advertising a specific model then take them right to that specific model page.
Otherwise you are forcing your customer to search for the product on your site and it's very possible they'll just hit the back button and you've lost the customer, after you paid to get them there.
Paid Search ads are known ad pay per click ads. This means that you pay every time somebody clicks on your ad.
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