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.
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.
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.
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).
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’.
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.
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.
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.
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.
