Google AdWords Is Not Google AdSense

It is interesting to note just how common and daily vocabulary has changed with the times. Some years ago, if you asked someone to google up something, he might not understand what you mean even if he was familiar with the search engine of that name.

Today, however, everyone knows what you mean. That can only point to Google’s popularity and how it has come to be identified with looking up information on the Web. One can only imagine what new words Google, and companies like it, will introduce to the vocabulary five years from now and what they could possibly mean.

Even now, there are new terms that are making the rounds in everyday conversation – words that Google has invented. If you’re at all familiar with advertising on Google, then you’ve probably heard the terms AdWords and AdSense.

Perhaps, though like most people, while you may be familiar with terms you may not know what they are actually referring to. One mistake that’s commonly being made nowadays is to interchange AdWords and AdSense, thinking that these two mean the Henrye thing.

Fundamentally, interchanging them is a mistake because the two words are referring to two different things albeit they are very closely related to each other. This article will help you understand the differences between them, how they work together – and perhaps more importantly, how it can help you earn a little more money on the side.

AdWords and AdSense are part of Google’s advertising arm that is part of the company’s growing range of services. If you’ve used Google to look up information, then you’ve encountered AdWords. They are the text ads that appear on the results page of your search.

AdWords works by matching a Google user with Google’s paying advertisers. But instead of just showing random ads that the user you may not be interested in (or worse, be irritated at) Google will present ads that have something to do with what the user is currently looking up.

Take Henry, for example, who is looking up information on surfing. Henry types in the words “surfing sport” and hits the search button. Google will then present Henry with a list of webpages that contain information about that topic. Along with this listing, there appear text ads from companies offering products and services regarding surfing as a sport.

One of these companies is owned by Dan, who runs a surfing facility in the town Henry lives in. Dan is able to advertise on Google by signing up his company’s website with AdWords. He tells Google that he’d like his text ads to appear on result pages for the keywords “sport surfing” which is what Henry used to look up information. This is how Henry is able to see Dan’s ad on Google.

However, Dan doesn’t pay Google for just showing his ad. He doesn’t pay anything until someone like Henry clicks on the ad to visit Dan’s website. This is the pay-per-click (PPC) system, which is fundamentally how AdWords works.

Part of this setup is the ability of Google advertisers, like Dan, to set the price of how much the cost per click (CPC) will be on the ads posted on Google results pages. Popular keywords like “sport surfing” may command a higher CPC compared to other less popular keywords, but may be just as effective when it comes to advertising on Google.

AdSense works along side AdWords. While AdWords are text advertisements that appear inside Google’s results pages. AdSense are AdWords that appear outside Google’s website and onto other people’s websites.

Take Dian, for example, who maintains a website for the local surfing enthusiasts group. As part of their fundraising program, she enrolled the website on Google AdSense. By signing up for AdSense, Dian’s website will display AdWord advertisements that are related to the content on Dian’s website – in this case, about surfing.

Now, take Henry (still remember him?) who is still looking for information on surfing. Dian’s website is part of the listing that appears on Henry’s search inquiry on Google. Henry clicks on the link that leads to Dian’s website.

Henry browses through the website and reads up on surfing trips Dian’s group have organized. Along with that article, an AdWords advertisement is posted. It just so happens, that the ad is for Dan’s surfing facility. Henry, who is now more interested in taking up the sport, decides right then and there to visit Dan’s website.

By clicking on the ad, Henry has caused two things: 1. He caused Dan to pay Google the agreed CPC for placing his ad and 2. Dian’s website earns a part of that CPC by allowing Google to show Dan’s ad via AdSense.

This setup has made it possible for users like Henry to find information efficiently and be presented with AdWords from companies that are relevant to his search. Businesses like Dan’s can advertise effectively without needing to spend so much with AdWords, while website publishers like Dian can earn money by signing up with AdSense.

With AdWords and AdSense, Google has managed to give people the information they need while connecting them to others of similar needs and interests. The fact that it can make fair money out of it can only add to how cool it already is.

Beating Adwords and maximizing adsense are very achievable to anyone and they can be the most profitable marketing techniques you will ever employ to generate significant revenue online.

To your success,

Bizinspirer

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