Marketing (and earning money) on the Internet can make use of a simple tool called Google Adsense. It is worth spending some time mastering Google Adsense for earning money, as Adsense can be financially lucrative.
Small contextual ads published on web sites with the consent of the web site owner is Google Adsense. Publishers that are selling products and/or creating brand awareness create the ads. The ads that are created are called Adwords and they are also a Google sponsored program.
Google Adwords and Adsense operate in parallel. The person who created the ad pays Google a predetermined price every time someone who does a search on Google or one of their affiliate networks clicks on one of the sponsored ads. This is where the term "pay per click" comes from.
When Google receives money from the creator or publisher of the ad, they have to split the amount with the person who owns or hosts the web site that the Adwords ads appear and that is the beauty of Adsense. For our purposes, let's assume the split is 50%, but it is a well guarded secret what exactly the percentage of the split is, but it does vary.
If the ad creator is fine to pay .40 per click for his Adwords ad, then the website host who has joined the Adsense scheme can expect to receive approximately .20 when the ad is clicked. The remaining .20 belongs to Google. So in effect, this is a partnership between the web site owners and Google.
In the most relevant way possible Adsense is shown. What does this entail? Well, probably an example would be the best way to illustrate this. Let's assume a website featuring women's clothing that is owned by Mary. If Mary decided to make money through her web site with Google Adsense, then the ads that would be shown on her web site would be related to clothing or women's clothing to be more precise. The Adsense ads would be appearing specifically for women's shoes if a page of her web site was dedicated to shoes.
By what dynamic is price per click determined? The Adwords side of the equation kicks in here. Publishers of Adwords bid on keywords. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. Sometimes a keyword is in excess of $50 per click or sometimes a few cents per click.
Anyone with a web site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their web site, you don't need rocket science to understand that. Web sites with specific content are created by most Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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Saturday, November 17, 2007
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