Most of the Internet marketing community is at least somewhat familiar with earning money through Google Adsense at this point. Among the benefits of using Google Adsense is the fact that it can be used for earning money and it is worth spending some time to see how Adsense does this.
Contextual ads are incorporated into a website after Google Adsense has gained the owner's permission. Publishers create the ads in order to either sell, or create brand awareness. These ads are named Adwords, which is also a program sponsored by Google.
Google Adwords and Adsense run hand in hand. Google gets a predetermined price from the person who created the ad, every time someone who does a search on Google or one of their partner networks clicks on one of the sponsored ads. This is what is known as 'pay per click.'
The beauty of Adsense lies in the fact that the person who owns or hosts the website that the Adwords ads appear gets to split the money with Google who pays them when they receive it from the creator or publisher of the ad. 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 a publisher is willing to pay .40 per click for his Adwords ad, then the host of the website that welcomes Adsense can expect to see roughly .20 every time someone clicks on that ad that appears on their website. The other .20 is kept by Google. So basically it is a partnership of sorts between Google and website owners.
In the most relevant way possible Adsense is shown. What does this entail? Well, let me give an example that probably illustrates it best. Let's say Mary had a website featuring women's clothing. Ads on clothing or specifically women's clothing can be shown on Mary's website, if Mary decides to monetize her website with Google Adsense. If a page of her website was dedicated to shoes, then the Adsense ads appearing on that page would be for women's shoes.
So how is the price per click worked out? The Adwords program takes care of this. Adwords publishers bid on keywords. If a keyword is particularly sought after, then the publisher will pay more per click. Keywords range anywhere from a few cents to in excess of $50 per click.
By putting Google Adsense on their website, it wouldn't be a wonder to see them making some nice money if the website they own generates some decent traffic. 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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Tuesday, February 5, 2008
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