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Google Advertising Programs: Adwords & Adsense


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All you always wanted to know about Google Advertising Programs...

How Google makes money?
How Google Adwords works?
How Google Adsense works?

Published in: Business, Technology, Design
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Google Advertising Programs: Adwords & Adsense

  1. Leslie Petrequin How Google makes money …and allow others to make some too Google advertising program
  2. First thing first: What is Google?
  3. is a search engine INDEXES RANKS RESPOND … all web pages … them by relevance … to users queries (when you do a google search you will search within the Google’s index of the web) - by using many parameters (how many times the word appears in the page, where does it appears, is there synonyms on the same page, quality website or not .. ) -by using PageRank (rates a page’s importance by looking at how many outside links point to that page) each page’s overall score
  4. Results page When a user types the keyword flower into Google search field
  5. How to decrypt the results? …for this query with the keyword flower Contextual ads … paid by advertisers Useful and impartial search results … obtained by using the PageRank algorythm
  6. Why would you do business with Google ? because it’s user friendly because it’s fast because of the quality of the results because of the continuous innovations and improvments …and mostly because users love it !
  7. …and if users love it and use it that means you can reach them via Google Million searches per day on Google in March 2009
  8. And now: Let’s talk money…
  9. What is Adwords ? Advertise your business on Google No matter what your budget, you can display your ads on Google and our advertising network. Pay only if people click your ads
  10. advertisers Why do they pay Google? So that, their can reach the people who are the most interested in their product And so that their ad .. … appears at the top of the results or on the right side of the page
  11. The official AdWords presentation
  12. How does it work ? IT’S A 3 PARTIES SYSTEM wants to make a good experience for both the advertisers and the users so that they come back and continue using the system the advertiser the user wants to present wants to see relevant ads to relevant ads users so that they click on them
  13. What does this means exactly ? A user does a search Let’s say for the keyword “flowers” They eventually click on an ad for a boutique flowwr shop (for example) The owner of the ad (the advertiser) will pay Google everytime a user clicks on their ad based on how much they previsouly bid to appear on that spot
  14. a bid ? How does the auction works ? The pay-per-click principle: Advertisers only have to pay when they receive a click
  15. Let’s take a simplified example … 4 advertisers their max bid price paid competing for 3 spots given to Google per click
  16. … but it’s a bit more complicated because Google wants to guarantee high-end quality ads Click-through rate (60%) each click on the ad is considered a vote of quality a quality score Relevancy (30%) is calculated of the keyword to the ads as well as to the user’s search query based on 3 components  Only useful ads are displayed to users Landing page quality (10%) relevant, original content, be easily navigable with quick load times
  17. Let’s go back to our example… Final ad rank = max bid x quality score 4 advertisers max bid quality score ad rank position highest bid eliminated The advertisers cannot secure a good ranking simply by biding high, their content has to be relevant for the user
  18. … how much do they need to actually pay? max bid quality price paid So, what’s the price to pay ? P1 . Q1 = b2 . Q2 P1 = b2 . Q2 / Q1 p for price Q for Quality b for bid
  19. To succeed with AdWords, you will need to … bid for the right spots choose relevant keywords and placements have relevant and original content keep your website updated design you website carrefully: easy to navigate, …
  20. What is Adsense ? Maximize revenue from your online content Google AdSense is a free program that empowers online publishers to earn revenue by displaying relevant ads on a wide variety of online content
  21. publishers Why Google pays publishers ? So that, the number of clicks on a given ad increases and with it, the Google’s revenue and so that the advertiser’s ad gets more viewers … by being displayed on a webpage with related content
  22. The official Adsense presentation
  23. How does it work ? IT’S A 3 PARTIES ECOSYSTEM wants to make a good experience for both the advertisers and the users so that they come back and continue using the system the advertiser the publishers are paying Google are earning money to thrive traffic to by showing relevant their sites ads to their visitors
  24. What does this means exactly ? A user visits a website Let’s say a blog about technology and innovation They eventually click on an ad that is displayed on the blog The owner of the ad (the advertiser) will pay Google everytime a user clicks on their ad and Google will give a share the money with the publisher
  25. How are the ads chosen? advertisers contextual targeting algorithm Place the ads on sites with appropriate contents
  26. .. and what about the prices ? AdSense is based on the PPC (per click) and CPM (per impression) advertising payment models. the publisher receives an undisclosed share of the revenue from the ads.
  27. How flexible is Adsense? Ads are placed on the website according to: AdSense™'s contextual selection and filtering criteria the publisher's options They get to filter ads the advertiser's option in the case of impressions-based advertising, they can choose from a number of available sites
  28. Did you know ? … there is several AdSense solutions
  29. The 2 most known ? Adsense for Content Adsense for Search
  30. Adsense for content What is it ? What’s the point? AdSense allows publishers to generate revenue from ads placed alongside web content -Maximize your website revenue - Show your users ads they'll be interested in - Tap into a network of thousands of search advertisers of the revenue that Google collects from -Start serving Google ads in advertisers “AdSense for content” ads is given to just minutes the publishers
  31. Adsense for search What is it ? What’s the point? allows publishers to place a custom Google search engine on their site and generate -- Create a search engine in revenue from ads shown next to search results minutes. -- Customize the appearance of search results and ads. -- Tune results and ads to your site's content and audience. revenue share is paid by Google to the “AdSense for search partners” for the -- Get more comprehensive site search ads that appear through their search results with improved implementations indexing.
  32. To succeed with AdSense, you will need to … have an attractive website, with pertinent and original content to keep visitors interested so they feel the need to go further… … and eventually find out more by clicking on the ads
  33. Bibliography … VIDEOS Introduction to the Google Ad Auction, video from Google How Search Ads Work, video from Google How Search Works, video from Google Google: Behind the screen, by IJsbrand van Veelen Know more about google, by itzvideo PRESENTATIONS Google Facts, by Woohyun Kim Google Brand Analysis, by Korhan Buyukdemirci Everything you always wanted to know about Google…But were afraid to ask, by Fabernovel Google Adword Guide, by ARTICLES How Google Adsense Works?, Google AdSense Tutorial The AdSense revenue share, by Google Adsense Blog How Google Works, by Google AdWords and Adsense, on Wikipedia Google Searches Per Day Reaches 293 Million in March 2009, on USA SEO Pros Nielsen NetRatings Search Engine Ratings, by Danny Sullivan
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  35. Thank you for your time !