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

You’ve probably come across the word Adwords at least once or twice. You know it has got something to do with Google but if you were asked what AdWords really is, would you be able to answer the question? If your answer is no, reading on will help you do just that.

If you’ve conducted at least one search via Google’s website, then you have already seen these Adwords. These are the text advertisements that appear on the results page of your Google search.

For example, you’re looking up information on digital cameras. You would very likely then type in the words “digital” and “cameras” into the Google search box. Those words are called keywords and Google uses them as the basis to look for information on the Web.

Google publishes its findings back to you on what’s called a results page. The results page is a list of webpages Google suggests you visit to know more about your topic of inquiry (in this case digital cameras).

On the results page there are text ads. One is about an online store that sells cameras, while another is from a company that offers probably photography services.

Now you may think that it’s pretty cool (and coincidental) that the ads that appear on the results page have something to do with your topic of interest. But what you should know is that this coincidence is in fact, planned on purpose by Google – and this is how AdWords works. By typing keywords into the search box, you have identified what kind of advertisers will appear on your results page.

To get a clearer understanding of how this works, try to picture yourself as an owner of a business (in this case, a camera sales and repair shop) with a website. As a business owner, you need to let people know about your business and that means you need to advertise.

Before AdWords, that meant you had to spend a huge amount of money on print, radio or TV ads. For smaller businesses it might mean making flyers and posters to be distributed in your area. But that, too, takes time and money.

To make things less encouraging, there is no surefire way of knowing that the people who’ll be seeing your ad are actually interested in seeing it, much less on your actual product or service.

With AdWords, not only are you showing your advertisement to people who are interested in your product, you also spend a significantly less amount of time and money in producing it. This is because of primarily two reasons:

1. Keywords are what matters.

In placing your ad with Google AdWords, you don’t need to spend on expensive productions. All you need is a keen sense of knowing how your (potential) customer thinks.

As in the previous example, when a person types in “digital cameras” on Google’s search box, it means he is looking for information about the topic, hence, interested in knowing more.

Google allows you to capitalize on this interest by giving you the opportunity to show the user your advertisement for your camera shop. The user is already interested about your line of business and therefore chances are good that he will read your ad.

Knowing what keywords people will use to look up information allows you to address your ad to a more specific target.

2. Pay only when they click through.

The other great thing about Google AdWords is that the cost of advertising is brought down to very manageable levels. Unlike conventional advertisements where you have to pay FIRST before your ad is shown, Google charges you only when a user clicks on your ad to visit your website.

Just how much is charged for every click? Only as much as you want it to be. Google has implemented a bidding system to “sell” keywords where advertisers, just like you, will dictate how much a cost-per-click (CPC) on an ad will be. The general principle being: the more popular the keyword is, the more expensive it can become.

For example in this case, the CPC on a results page using the (more popular) keywords “digital camera” may cost 50 cents while the CPC on an ad appearing on the results page for the (not so popular) keywords “camera lens maintenance” may just be 20 cents.

However, don’t be misled with this seemingly low cost. Agreeing to pay 50 cents per click may not seem much, but if 200 people click on your ad every day, you’re looking at $3000 per month. Even for a medium-sized business, that is still something to consider. This is where smarter advertisers not only spend less in advertising but also increase their revenue by converting more casual visitors to actual customers.

By using more specific keywords you show your ad to a person whose interests are that much closer to what your business is offering. Therefore, when he clicks on your ad to go visit your website, it is no longer your burden to convince him he needs your product or service.

With this setup, it is not far-fetched to being able to conduct a nationwide ad campaign for your business at a dollar a day AND see encouraging results on the bottomline.

In the end however, all these innovations still build on the foundation of knowing your customer and how they think. Once you’ve got this down pat, AdWords then becomes a much more powerful tool that can increase your online business’ potential to make profit.

To your success

bizinspirer