- September 10, 2009
- Posted by: admin
- Categories: Blog, Business Dynamics, Search Engines, Search Marketing
According to Wikipedia, AdWords is Google’s flagship advertising product and main source of revenue ($21 billion in 2008). AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google’s text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.
Users that search at Adwords-integrated engines get these paid listings as search results, meaning that what the user gets to see does not only depend on how much it relates to the search, it also depends on how much the advertiser is paying for it.
Since its launch in 2000-2001 – Adwords revolutionized the PPC domain, easily taking over overture’s (goto) territory with leaps and bounds, due to its authenticated content system, use of CTR (click through rate) in ad placement rankings and the minimum bid system, concepts that were not implemented in earlier PPC systems.
However, during the period of 2003-2005, another Google product started taking root. AdSense is an ad serving application run by Google Inc. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Adsense also pays websites a share of the revenues generated through ads placed on them, all the more reason to get more traffic on the ads, relevant or not.
In dummy terms, Adsense puts Google Adwords ads all over internet sites, for free, helping Adwords create more impressions and clicks for its advertisers. However, some things which have never been brought to the table , are as follows:
Ive been into Internet Marketing ever since i was 17, (2001). My data statistics show that my clients CTR’s(click through rates, impressions/clicks) , irrespective of business domains, have improved considerably with the introduction of Adsense. However, the real variable, conversion ratios (prospect-> client) has dropped down immensely, due to increase in unwanted traffic, even on specifically targeted search terms.
In case you haven’t figured it out yet, Google’s willingness to share advertisement revenues with people who put adsense on their sites has resulted in foolproof scamming methods, which are continuously in a perfection cycle. People are specifically making ‘content-authentic’ websites just to create more n more clicks at their Adsense accounts. Some scammers are even using business models where they encourage visitors/variable IP bots to click ads on their sites, so that they get maximum Adsense revenues. Google has come up with quite a few best practices, systems and site ban policies to save face from such scams, but the core AdSense business model itself is a loophole that continues to be exploited.
At the end of the day, its the advertiser that ends up suffering owing to the ‘click more, get more’ nature of Adsense. Coming to the inference – would you, as an advertiser, want to show up on Adsense? How do you feel Adsense has effected the PPC market. Though it has done wonders for Google, does it really help advertisers improve conversion ratios on sales, or was Adwords much better off without Adsense? furthermore, what is the way forward, if PPC has to redeem its past glory as the most cost effective and efficient conversion method for any business(which is no longer the case).
Feel free to voice your opinions, even if they contradict my statements.
Hi Zohaib, 8)
I also tried advertising with Adsense for the first time and previously I was only using Adwords. I got the same result as you from Adsense massive clicks through rate and they spent less than a second on my website. I can track the origin of every visitor of course and kept records of this. Normally I get a lot of referral customers/website traffic and info article traffic from the search engines and they stick around a while far more than average in fact. Google’s Adwords always works fine too whenever I need it.
Clearly, real consumers do not click on an internet advertisement in massive numbers unless they have some interest. Another important point, serious readers, students, consumers and researchers all find Adsense Ads excessive. They should never ever interrupt the actual text, be under the title directly compete with the host website or blog. Relevant is certainly okay, but then computers do not really have the ability to think.
I found Adsense to be so annoying that I deleted from my Google Knols (info articles) for job hunters. I think Google Adsense should take a hint from the newspapers which were so successful for a few hundred years.
Advertising should be on the left or right of the text/article/feature period.
There is a precious little human trait called common deceny or respect for your fellow man.
If you own a website or are a webmaster and you annoy all your readers by placing Adsense ads directly under the title or in the body of text versus on the left or the right; you need to get your head examined. I am sure you find the extra pop up TV commercials during sporting events during the action a joy too.
Just so you know the consumers defense to excessive advertising is to mute commercials and engage in conversation instead. Even better a new adjustment is to TIVO or record the program and skip the commercials or fast forward over them. So you see, there is a point of dimishing returns.
Attention job hunters, check out my helpful info articles (Google Knols) just for you with no advertising. My links are below. 8
Obviously website owners/webmasters are responsible for placement and excessive use of Google Adsense ads. In paragraph 3, second sentence I mistakenly implied that Google Adsense had control, they don’t. Silly webmasters, you do know that most consumers will simply go to other more professional websites like NationalGeographic.com or FinancialTimes.com were they can get the same info with less hassle.
Two years ago I put Adsense on my Blogger blog, which I use for my main books site. At that time I drove 100% of my traffic to that site, so I got a lot of Adsense clicks, which was fun for a while.
But then I got some “sense” (LOL). I noticed my book sales had dropped ever since I’d had Adsense on my blog. Silly me! Why would I spend my time and money driving traffic to my site only to see people clicking out of my site through the Adsense ads? Crazy!
So I took Adsense off my blog and my book sales rebounded. Live and learn, ya know? LOL
Like anything, it’s buyer beware. You don’t have to use the Content Network, and if you do, it’s incumbent on you to monitor and optimize (blocking certain placements, etc.
Since it is optional and can be managed entirely separately from your search campaigns, I don’t see how it has sullied search advertising. It’s simply one more channel that has pros and cons that you have to manage against.
I’ll check it out.
I agree with Michael, I don’t see how AdSense has sullied the PPC landscape. Its entirely optional, and can be quite successful in delivering both traffic and conversions if managed properly. It also allows brands increased reach into areas where they otherwise may not be able to access an audience (I’m thinking targeted niche properties & blogs). From a business perspective, its a great decision for both Google & its publisher partners because the publisher can monetize their site & Google can expand their reach for advertisers. Its a win-win-win!
It was bound to happen. Google is into making $ after all. As a computer user, I am not very annoyed with these ads. They simply do not work on me. I am not sure about other users though.