Monday, February 2, 2009

Introduction to Google Advertising Programs

In the previous post, I wrote about how Google makes so much money despite providing many free online services. Today I am going to write about how all of us can make money from Google, through its two advertising programs. Basically, the two advertising programs are Google Adwords and Google Adsense.

Google Adwords is a cost per click advertising program, which means you only pay when people clicks on your advertisement. Google Adwords is mainly used by e-commerce owners or Internet marketers who need targeted traffic to their online stores or landing pages with affiliate products. The cost is calculated based on the biding price of keyword that you add to your campaign. So the bidding price is basically all about demand and supply of a particular keyword. Some competitive keywords can be very expensive. For instance, the keyword "auto insurance quote" has a average cost per click of about $124. It means that you have to pay Google $124 when someone clicks on your advertisement that is optimized for the keyword "auto insurance quote". Smart Internet marketers often do keyword analysis to find cheap keywords that can bring them targeted traffic for small but profitable niches.

There are actually two advertising options in Google Adwords, either on search engine or content network. Search engine advertisement is what we normally see on the right hand side of the Google search result page. On the other hand, advertising on content network means publishing your advertisement on other people's websites through Google Adsense program. Most of the time, advertising on search engine is more expensive than content network, but the traffic properties from seach engine tend to be better.

If you do not have money to invest in paid advertising, or you do not have any product to sell or promote, you might want to join Google Adsense. In a nutshell, Google Adsense is pay per click advertising program that caters for web publishers and bloggers. A web publisher has to copy some codes generated by Google and paste them on the website and the advertisement will automatically appear on the website. When someone clicks on the advertisement, the web publisher will get paid a certain amount of commission. indeed a "win win win" situation for all three parties. Almost same as Google Adwords, the revenue per click will depend on the cost per click paid by the advertiser. The higher the cost per click of a keyword, the more revenue will the web publisher yield from someone clicking that particular advertisement. However, this is not always true as Google has a special policy called "smart pricing" that shuns the publisher from earning a lot of money from the so called "high paying keywords". Smart pricing is mainly used to protect the advertisers and Google.

In fact, there are so many things to learn if you wish to make money by using Google Adwords or from Google Adsense. Many beginners have lost thousands of dollars in one day from Google Adwords as they do not do proper keyword research and analysis before running the advertising campaign. On the other hand, many web publishers can hardly make one dollar per day from Google Adsense as they either do not bring enough traffic or do not optimize the advertisement.

This post is just about the introduction to Google Adwords and Adsense. In the upcoming post, I will write more details about the two programs. Stay tune! */
Posted by Su Sheng Loong at Monday, February 02, 2009
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4 comments:

  1. are you in holiday sheng loong? its like you are missing in action and all in sudden post everything out of your brain hehe.

    well, which do you prefer... adsense or nuffnang? :)
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  2. "Many beginners have lost thousands of dollars in one day from Google Adwords as they do not do proper keyword research and analysis before running the advertising campaign."
    --> I think the way to avoid that is to have a cap set on spending - you can say in advance how much is the maximum you want to spend, and therefore experiment a bit first before investing too heavily.
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  3. Faisal: Haha. I was having my Chinese New Year holiday for the past few weeks. I will start attending college lessons today onwards. Hopefully by writing more I can contribute more to my visitors and friends like you.

    Frankly speaking, I don't think Nuffnang can really compete with Adsense. Adsense is way too strong. However, Nuffnang does have some advantages in Malaysian market as it has been maintaining good relationship with local bloggers and advertisers.

    Julian: Hi, glad to see you on my blog. Yes, setting cap can be a good way to avoid overspending your advertising budget.
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  4. Google has different advertising programmes like PPC,CTC,CPM etc.By these methods the advertisers choose the ways of advertising his sites according to his budgets.These programmes are effective for both the advertisers and publishers.Also the customers get the valuable information with in less time period of time.
    ReplyDelete

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