AdSense
- The Yin:
By: Nicholas LaPolla
Many websites include a section or two with the "Ads by Google" above it or below it. These are ads displayed via Google's AdSense. When you do a search on Google and see ads in the search results pages, they are generally AdSense ads.
Google's AdSense is programming that "senses" the content of a page
or search. It finds keywords on a web page or in a search phrase to determine
the subject of the content. It does this by either "reading" the
page, or taking a look at the search term that was typed into Google Search. It
can "Sense" which ads in the system are relevant to the content or
search and display them - thus: "AdSense."
Before
ads on a page are displayed, AdSense searches its database of advertisers and
finds ads that are associated with keywords on the page or in the search. Now
AdSense needs to decide which of the thousands of ads vying for position are
actually displayed. To make this decision, AsSense looks at the advertiser's
bids for the relevant keywords. The advertisers that have a combination of the
highest bid, keyword relevance and best click through get displayed first.
Google tracks clicks on ads and advertisers pay Google the bid price for each
click. When the AdSense ad is on someone's web page, Google pays the website
owner a portion of the payment for each click. The term "monetizing"
your site refers to taking your existing site and placing ads like AdSense on
it to make money (or finding other way to make money with websites). If you get
10,000 visitors and 10% of them click an ad that pays you, theoretically, $0.75
per click, you just made $750! Not bad for just copying some AdSense code
(which Google provides) into your popular website's HTML (if your site is not
popular, learn about SEO - Search Engine Optimization - from sites like
AcmeWebResources).
AdWords - The Yang:
The other side to AdSense is AdWords. AdSense ads have lists of relevant
keywords associated with them. Each keyword is bid on by the advertisers for
placement in the results pages and on web sites around the world. The words
that will prompt a display of an advertiser's ad are bid on by the advertiser.
When an ad matches the words on a page, the ads are displayed; thus: AdWords.
AdWords is the system in Google that is used to place ads that display in
AdSense.
You can enroll in AdWords to pay for AdSense ads to drive traffic to your site.
The first step is to sign up with Google. The next step is to associate
keywords to associate with your site.
The idea is to drive traffic to your site through the use of relevant ads. The
more relevant the ad to your content, the more targeted your traffic will be.
Compose your articles around your list of keywords. Next, write an ad based on
the keywords and assign keywords to the ad. You will bid on the keywords at the
time you associate keywords with the ad. If one of your keywords is searched
for or relevant to a site, and you have a good bid and relevant ad, your AdWord
ad will be displayed. Only when someone clicks your ad are you charged by
Google.
The more popular keywords are wanted by many competitors, so the prices per
click can get pretty high. It is not uncommon for a click to cost $5 or even
$10. If you have 10,000 ad clicks, after you account for your conversion rate
(the rate that you convert visitors into buyers) you better be sure you are
making more than the ad click costs! But it should never break your bank
because you can set the bid limits and the monthly budget.
What if you can't afford $5.00 per click? Since the more popular keywords are
so expensive, it is best to bid on less popular keywords because the cost per
click is lower. Google presently has a minimum bid of $0.05 per click. If you
can get those, you can reduce your advertising budget.
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