Google AdWords can be a profitable way for advertisers to reach customers. On average, advertisers pay between 15-50 cents per click from Google searches. While research costs can be high initially as advertisers determine the best keywords and ad placements, Google uses both bid prices and click-through rates to determine ad position, so high bids are recommended early on to generate clicks and lower bids can be used once high click-through rates are established. Whether the costs are effective depends on both qualitative and quantitative factors and the size of the potential customer audience reached through online advertising.

1. AdWords
Rashesh Dave
Reuben Kurien
Geo Joseph
Niladri Sekar Maity
Minto Mathew

2. Is Advertising
through Google
Profitable?
Around 15-50
cents a click is
average range for
what a advertiser
pays on Google
Adwords.

3. Proposal
• What is the probability that a person will click on the
Sponsored Advertisement that Google displays on the
web page?
• Is the research cost effective to the firm?

4. Literature Survey
• Google's total advertising revenues were $28 billion in
2010, but is it worth for the Advertiser?
• A general bid starts from 10 cents to around $15 for
some specific key word.
• In early development of an advertiser the bid remains
high, for example, if your ad group bid is set to 10
cents, you might set a 25 cents bid for the exact match.
• Google's ad system determines placement by both bid
and CTR (click through rate). To earn a high CTR, you
first need to generate some clicks. Bid high initially so
your ad is seen early in the search results. Once you
have a high CTR, lower your bids.

5. Qualitative or
Quantitative
• Here the company will pay a larger amount as the
people who use internet services are comparatively
larger in number.
• Hence both Qualitative as well as Quantitative.

6. Thank You..!!