Sunday 11 September 2011

Earning from Google Adsense


 In this blogpost I had tried to explain all about Google Adsense. The visitors will gather more knowledge on the subject and I am sure they will be able to earn money by utilising the Google Adsense concept. Earn more money from home by putting Adsense ads on your website or blogpost.

Google AdSense is one of the most popular program run by Google Inc.
Website owners can sign up with Google Adsense free of cost and get to place advertisements on their web pages.
Google's Adwords is the source of the ads used for the Adsense program. Adwords users would pay money to run these ads so that they themselves can generate money by sending people to their websites. These ads are placed as adsense ads on a website owners (publishers) webpage.
When an ad is clicked on, Google will pay the website owner a certain percenrage of what the Adwords advertiser is paying to run the ad. Google earns the rest.
Google crawls through and searches the publishers content, geographical location and places relevant ads in those websites. AdSense has become a popular company in creating and placing banner advertisements on a website, because the advertisements are less intrusive than most banners, and the content of the advertisements is often relevant to the website.
Many websites use AdSense to monetize their blogsite or website. To fill a website with advertisements that are relevant to the topics discussed, webmasters place a brief HTML code on the websites' pages. Websites that are content-rich have been very successful with this advertising program. A website owner may place three ads units per page only.
As a website owner you should put significant effort to maximize your AdSense income. You should do the following:-
  1. Use all types of traffic generating  techniques.
  2. Use valuable content on your websites that attract  AdSense advertisements.
  3. Entice the visitors to click on the Adsense ads. But NEVER USE WORDS OR PHRASES LIKE “CLICK ON MY ADSENSE ADS”. GOOGLE PROHIBITS IT.

How to make more money with Google Adsense?
·         Placing of the ad units – Ensure that  the adsense ads blend in with your page theme. The more natural it would look and the more clicks they would get. Place the ad units in the places where there will be the highest chance of getting clicked.
·         Content – Always try to write quality content. The better the writing the more hits you will get.
·         Title – The title must be very relevant to the content.
·         Keywords - Use keywords in the title of your pages so that they would get a higher rank  in the search engines where more people will visit your site or page.
·         More Traffic - The more visitors you get the more clicks you are likely to get.
·         Do Not Click - Don't  click on your own ads. Google will ban your account if they find out.


AdSense for Feeds, is a version of AdSense that runs on RSS and Atom feeds. According to the Official Google Blog, “advertisers have their ads placed in the most appropriate feed articles; publishers are paid for their original content; readers see relevant advertising—and in the long run, more quality feeds to choose from."

AdSense for search, allows website owners to place Google Custom Search boxes on their websites or webpages. When a user searches the Internet or the website with the search box, Google shares 51% of the advertising revenue it makes from those searches with the website owner. The publisher is paid only if the advertisements on the page are clicked.

AdSense for mobile content allows website owners to generate earnings from their mobile websites using targeted Google advertisements. Google matches advertisements to the content of a mobile website.

AdSense for domains allows advertisements to be placed on domain names that have not been developed. This offers domain name owners a way to monetize domain names that are otherwise dormant or not in use.

AdSense for video allows publishers with video content to generate revenue using ad placements from Google's extensive “Advertising network” and the popular “YouTube” videos.




While learning about how to earn from Google adsense, you need to know the following terms.
WHAT IS CPM
CPM means COST PER MILLE. In Latin mille means thousand. It also means cost per thousand. So it means, the cost of showing one thousand advertisements impressions online (in online marketing). It is popularly and widely used benchmark in online advertising, radio advertising, television and newspaper advertising.
Advertisers are charged on the basis of - showing the ad to one thousand viewers.
For example, an advertisement is being shown 100,000 times at CPM of $0.5, means that the payment by the advertiser to the publisher (website or blog site owner) would be 100,000 x 0.5 / 1000 = $50.
Advantages of CPM
1. The advertiser knows exactly how much it would cost him to show his advertisement to one thousand viewers.
2. It is a common measurement for buying advertisement projects in many media’s.
Disadvantages of CPM
1. Performance of advertisement cannot be gauged from this kind of ad campaign.
2. There is no co relation with advertisement views and actual sales.
WHAT IS CPS or PPS
CPS is COST PER SALE. It is also known as PPS (Pay Per Sale). It is the pricing system in online advertising program, where the website / blog site owner is paid for the sales that is directly generated by clicking on the advertisement (by the visitors of the website).

CPS or PPS falls under the group of CPA (Cost Per Action), where the advertiser pays the website owner for the actions committed by the visitors towards the eventual sales of the product / services that the advertisement is for.

In online transactions, the CPS advertisements on the publishers website is given an unique identification code. When the visitors clicks on the advertisement, it is tracked and if finally, a sale is generated; the website owner gets a percentage of the sale price.

CPL or COST PER LEAD is the same kind of model as CPS or PPS.

Affiliate Marketing Programs usually offers CPS or PPS model of advertising, where the publisher gets certain commission on the sales generated by the advertisement which he/she displayed.

ADVANTAGES

1. The advertiser pays according to the results only.

2. The online advertisement is shown for unlimited period of time.

3. There is no risks for the advertisers.

4. No frauds can happen in this kind of advertising campaign.

DISADVANTAGES

1. The publishers gets its revenue only when the advertised product / service is sold.

2. It is difficult for the advertiser to ascertain the time span of the ad campaign.

Under the CPA umbrella, there are other models also like Cost per Call ( used in cellular advertising), Cost per Download (for downloadable products), Cost per View (for video based ads).

WHAT IS CPC. WHAT IS PPC.

CPC is COST PER CLICK. It is also known as PPC (Pay Per Click). In this model of online advertising, the advertiser pays the publisher or website owner when visitor clicks on the advertisement. Payment depends on number of clicks mainly, and does not depend on the sale of the advertised product.

CPC or PPC is used to direct traffic towards the advertisers website and the advertiser pays the publisher for doing this service.

Website owners or publishers who utilize CPC or PPC ads displays an advertisement when keywords matches with the advertisers keywords or when content of the publishers website matches with the content of the advertisers product / services. These advertisements appear near the relevant content or where the publisher chooses. These advertisements are called ‘sponsored ads’ or ‘sponsored links’.

Google Adwords, Yahoo Search Marketing are among the most popular CPC / PPC providers.

This model of advertising is prone to frauds and the PPC ad service providers have tough time to deal with this menace.

How cost per click is determined?

An advertiser has to keep in mind, that he gets the most out of a advertising campaign. The advertiser would judge the potential traffic of a website, the contents of the website and the potential customers they may get from the ad they put up on the site. Targeting the potential customers is the key factor in CPC and PPC advertising campaign. The potential customers interest (which can be determined through search terms and key phrases), the content of the page the visitor is browsing, intent and location of the visitor are given utmost importance.

 There are two methods for determining CPC (cost per click) or PPC (pay per click). They are:

Flat Rate CPC:

In flat rate CPC model, the advertiser and publisher agree upon a fixed rate that will be paid for each click. A publisher may have different fixed rates for different areas of his website. The areas which gets the most attention of the visitors are priced higher than the areas where attention is low. The contents which gets the most attention of the visitors are also priced higher the same way. However, advertisers can negotiate for better rates of advertising.

Bid Based CPC:

In the bid based CPC model, the advertiser bids in the auction hosted by an online advertising company. In this system the advertiser competes with other advertisers. Each advertiser informs the online advertising company, the amount they are willing to pay for advertising their product in a certain spot. When the winner to the auction is determined, the advertiser can advertise the advertisement in the slot.

Advantages of CPC / PPC ads

1. The advertiser knows the actual amount he will have to pay for each click.

2. The online advertisements will be shown until a certain number of clicks is generated.

Disadvantages of CPC / PPC ads

1. There is no relation with sales or sale leads.

2. Weak performance, as far as sales is concerned.

3. This system is vulnerable to click frauds.

WHAT IS CTR

CTR means CLICK THROUGH RATE. By CTR we gauge the success of an online advertising campaign.

To measure the CTR, the number of clicks on an ad is divided by the number of times the ad was displayed (impressions) and presented in percentage.

For example, if an online ad was displayed 1000 times, and was clicked 10 times, then the CTR would be 1%.

Nowadays, if you achieve a CTR of 2%, it would be considered a very successful ad campaign. Earlier, in the 90ies, the rate used to be much higher, but after that the rate has fallen, now averaging 0.2 to 0.3 percent.

WHAT IS CPI

CPI means COST PER IMPRESSION. The cost of one impression is derived from CPM (Cost per Mille) meaning cost per thousand impressions.
A single appearance of an ad in a webpage is called an impression. Every time an advertisement loads in a webpage, it is tracked and counted by the ad server.
In online advertising and marketing this is an important term. It is used for measuring the cost of an advertising campaign. In e-commerce or e-marketing, this technique is always used and measured.

WHAT IS eCPM

eCPM means EFFECTIVE COST PER MILLE. It is used to calculate the effectiveness of the advertisements shown on a publishers website via CPA or CPC ad program.

Here, the publishers will be able to compare his earnings on CPM basis, instead of CPA or CPC ad programs.

WHAT IS RPM

RPM is REVENUE PER MILLE, meaning page revenue per thousand impressions.
It is measured by dividing your estimated earnings by the number of page views you received, then multiplying by 1000.
Page revenue per thousand impressions (RPM) is calculated by Page RPM = (Estimated earnings / Number of page views) X 1000

DIFFERENCE BETWEEN CPA and CPL

In my earlier articles I had explained CPA and CPL mode of advertising. As you know,
CPA stands for COST PER ACTION
And
CPL stands for COST PER LEAD.
I have been asked by some followers, the difference between the two, since both sounds the same. Here is the difference.
1. In CPA advertising program, the advertisers pay only when their goods or services are sold involving credit card transactions.
In CPL ad campaigns, the advertiser pays for the interested sales lead (may not be direct sales). Here, the advertisers are interested in the contact information of the interested person whom they may directly contact for prospective sales. This kind of campaigns is suitable for brand and image building, and for approaching the prospective customers in due time, themselves.
2. Advertisers of CPA marketing campaigns have little control on displays of  their ads. It is controlled by the publishers. They display the affiliate ad in the position they think right. Publishers browse for offers and decides which ads they want to display and where to display.
Whereas, CPL advertisements are controlled by the advertisers. The advertisers select contextually relevant websites to display their ads.
3. CPA ad campaigns are low in volume, whereas CPL ad program is high in volume.

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