AdSense - How to Succeed 5

Adwords

Overview

This is Google’s main source of revenue, at US$21 billion in 2008, and their foremost and most prestigious advertising product.

Adwords offers both pay-per-click (PPC) advertising together with site-targeted advertising suitable for both text and banner ads (which is a form of online advertising in which the ad is embedded into a web page, either wide and short, or tall and narrow, which is why they are called banners).

The Adwords product is distributed on a local, national and international basis. The text ads tend to be short, typically consisting of a single title line followed by two content text lines. The image ads are available in any of a number of various Interactive Advertising Bureau (IAB) standard sizes.

Pay-Per-Click Advertising (PPC)

PPC is an Internet advertising product used on websites in which an advertiser pays a pre-determined sum solely upon their ad being clicked. In the case of search engines, advertisers commonly place bids with keyword phrases that relate to their target market. On the other hand, content sites normally charge a pre-determined price per click instead of using a bidding system. Consider the following terms:

Keywords – An Index Term defines the nature of the topic of a document. They can be used as keywords to retrieve documents in an information system, such as a catalog or a search engine. A common form of keyword found on the web is called a tag (which is a keyword or term associated with various data, such as an internet bookmark or computer file – it helps to describe an item and makes it easier for it to be found again by browsing or searching).

Target Market – This is defined as the market segment (which involves breaking the market down into groups of people with similar needs) in which a particular product is marketed. It is often characterised by either age gender or socio-economic grouping.

Search Engine – This is a mechanism for information searches on the Web. The search results are normally presented in the form of a list, and are commonly referred to as “hits”. The data may comprise of web pages, images, and different types of files.

Cost per click (CPC) refers to the sum an advertiser pays to search engines and various other Internet publishers for a single click on its advertisement which results in one visitor to its website.

The role of the standard portal is to drive as high a volume of traffic as possible to one particular website. However, on the other hand, pay per click implements what is characterised as the affiliate model which offers the ability for any surfer to make a purchase. The way this operates is that it makes available financial incentives, such as a percentage of total revenue, to the affiliate sites. All that the affiliate has to do is to ensure that, as a result of each purchase, there is click-through to the merchant. Looking at it from a different point of view it is, essentially, a pay-for-performance method. Accordingly, should the affiliate be unable to generate any sales income, then it would cost the merchant nothing. The internet is an excellent vehicle for the affiliate method which is, therefore, very popular. There are a number of alternatives based on this method, including banner exchange, pay-per-click, and revenue sharing programmes.

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