Most people know what is Adsense but I am going to explain it here.
If you visit a website, you will see ads in different places of the webpage. These ads are actually ads by Google Adsense. It is a type of contextual advertising. You can view the screenshot below to get an idea what is Adsense ads.
First of all, I want to explain a few terms that I will be repeating in this guide.
Publishers – Publishers refer to owners of websites/blogs that post unique content so that Google will allow them display the ads of various advertisers.
Advertisers – Advertisers are clients of Google who pay to get their ads shown on various publishers’ websites/blogs.
Now you know that publishers are the webmasters and blog owners who make money by display ads along with their content and advertisers are those who hope that people click through their ads on the publisher’s sites to buy their products.
Relation between Google Adwords and Google Adsense
You must first get an understanding about the Google Adwords program before you can understand the Google Adsense program. Here, you might need some explanation on the new term, Google Adwords.
So, what is definition of Google Adwords?
Google Adwords and Google Adsense are related to one another, like the two sides of same coins.
You should be starting to get an idea on what is Google Adsense after reading the above paragraph. Now, we will put our focus on discussing the Adwords program.
Google Inc. draws in 90% of its revenue via Google Adwords, All kinds of companies including corporation and medium and small size business owners are interested to sell their products to customers worldwide.
Many business owners have look to Google Adwords program as the fastest way to find prospective customers. They buy advertising from Google, where their ads will be displayed on a website or blog.
Google Inc operates based on the advertising money they collected from various businesses.
We will explain what is Adsense program in the next paragraphs.
Reading on will help you to have a clear understanding on how Adwords and Adsense programs work together.
I will right now discuss about Adwords ads. There are 2 types of Adwords ads. The first type of Adsense ad is displayed on the right side of the search result. The ads on the right side will change based on the keyword you search for. These are called Adwords ads, Google is paid by the advertisers to display these ads.
The second type of ads is the Adsense ads that are displayed in a website based on the content published on the webpage. The Adsense screenshot as displayed in the first image is obtained from the Get Sarkari Naukri’s site.
How Google Adsense Works?
It is easy to understand it. Just as I have pointed out in the paragraph above, business owners pay Google to have their ads displayed on the websites of the publishers.
Google Adsense is a program created for bloggers and webmasters to make money from contextual advertising unlike Google Adwords where business owners buy advertising.
The publisher or blogger must first submit their website for Adsense approval. The site owner can start displaying the ads on the website after his/her site is approved.
People who are searching for some information on the web may landed on the publishers’ websites and click on an Adsense ad, and the publisher will get paid for every click.
Publishers are paid with a share of the revenue that Google receives from the advertisers. Advertisers will pay Google based on how many times their ads are clicked. About 68% of the earnings are paid to publishers, and the remaining 32% are the real earnings of Google.
For illustration, if Google is paid Rs 100 for a click by an advertiser, they will payout Rs 68 to the webmaster and keep the rest of the Rs 32.
Therefore, Google will payout a large portion of the revenue they receive from advertisers and keep the rest for themselves.
So, you should get a clear picture of how Adwords and Adsense program work together right now.
We will now explain what are the different types of Adsense ads:
Adsense for Content: This is a contextual advertisement that appears based on your content type
Adsense of Feeds: Ads will display in the feeds.
Adsense of Search: Ads will display in the search result
Adsense for Domain: Ads will display on parked domain names.
Adsense of Video: Ads will appear in videos in YouTube.
The following are some of the terms you will often see in Google Adsense:
CPC: Cost Per Click – This represents the amount you are getting for per click, which could vary from $0.10 to $2 or higher.
CTR: Click Through Rate – The percentage of visitors that click the ads out of the total visitors of your website. For example, if you only get one click and your site has 100 visitors, the CTR will be 1%, 3% CTR if you get 2 clicks and 4% CTR if your site get 3 clicks.
Views: The number of times the ads are being displayed to visitors on your blog.
Visitors: The total number of people that visit your blog.
Eligibility & Role of Publishers and Advertisers for Adsense & Adwords Respectively
Not everyone who applies for Adsense program will get approved. When the Adsense program just started, it was much easier for a site to get approved but nowadays Google has put more rules so it has become even harder.
The complete terms and conditions for the program is outlined here.
I want to remind all those who are interested to apply that Google will only be approving website with high quality content.
Advertisers do not have access to Adsense. They buy the advertising via Adwords.
There is no requirement to meet in order for advertisers to join Adwords. The only thing is that they must prepare the money for bidding on the keywords every day. Google will display your ads based on how much you are paying for per click. Google will display your ads in higher position if you pay more.
So, it depends on how much you are willing to pay Google for per click.
Role of Publishers and Advertisers
As a publisher, you are responsible for making sure that your website is constantly supplied with fresh and relevant content. Your site must offer content that answers the questions the visitors are asking the search engine. It isn’t easy to come up with a good content. But, you must remember that providing quality content for your website will reward you with a better ranking position in Google.
The advertisers are very important to Google because they are the income source, and without them, it would not have been possible for Google to offer the Adsense program.
Prime Users of Google Adsense – Demongraphics
We will now discuss more in details about the Adsense program. You already know that the users are referred as publishers. What should you know about them? What is their age? How many publishers does Google Adsense has. These are a few questions that many people have been asking.
Bloggers from different countries in the world have joined to become publishers. The average age is about 16 years old to 34 years old. They are still young and they have a passion for doing something that is different from the conventional way of making a living.
Most of the bloggers live in the cities. It is very rare to find a blogger that live in the countryside of a country. For example, many Indian bloggers live in urban areas such as New Delhi, Mumbai and Bangalore.
The content on your site is one factor that affects your income. You will see that many bloggers earn about $300 per month. If you are a fairly good blogger, you can expect to earn $800 – $1,000 per month but if you are a very popular blogger, it is potential to make $10,000 – $50,000 per month. Learn more about the Adsense earning strategy here.
There are 100,000 bloggers blogging via the WordPress platform every day. So, now you know how many bloggers there are.
Bloggers are owners of a blog who write unique posts for their blogs. Some publishers do not create the content for their blog themselves. Instead, they hire writers and depend on them to provide content for their blog regularly. Some hire hundreds of writers and proofreaders to make sure that their blogs are supplied with top notch content. These publishers are able to pull in a revenue of 10 – 20 times more compared to an individual blogger.
They likely earn millions of dollars per month.
You can check this link to learn about the secret Adsense strategy that can increase your Adsense earnings by three times.
Gain for Publishers, Advertisers and Google
Just like I have pointed out earlier, both publishers and advertisers will be able to take advantage of the Adsense program. Google will benefit the most out of it.
Now, we will dealt on how much profits you can make.
Publishers can get many benefits from Google Adsense. Small publishers which are made up mostly of bloggers are able to live a good life because of the monthly income they receive.
Most of the bloggers have quit their office jobs after finding success with Google Adsense. I welcome you to read how I succeed in my online career. Many bloggers no longer want to do their office job when they are able to earn enough to cover their living expenses. There are lots of young people who begin their first career as a blogger. Instead of finding a job, they make a living from blogging following the graduation.
Big publishers earn much more and they pull in a monthly income of a few millions dollars and they could also create their own brand at this stage.
Having a brand enables them to increase their awareness about the products they are offering.
Advertisers also benefits in the same way as publishers. The advertisers’ money is the reason why Adsense program is running and how both the publishers and Google are able to make money.
The spending of the advertisers will depend on how much money they can generate from it. These advertisers are owners of small businesses who benefit when customers purchase their products through the ads.
It is harder for online small business owners to increase their visibility among prospective customers if they didn’t sign up with Adwords.
In the end, Google profit 32% of the share from the advertising money they receive from the advertisers. They act as an intermediary between advertisers and publishers and just profit on the 32% of commission.
So, Google is not the only one that benefit but they are providing a stream of income for a lot of people from Adwords and Adsense.
The publishers, advertisers and Google all benefit from Adsense.
Other Competitors of Google Adsense Program or Alternatives for Adsense
Google Adsense is not the only contextual advertising program as there are many alternatives to it.
Is there any other competition that Adsense faces? Of course, there are lots of similar advertising companies that are competing in the contextual advertising industry.
Not all publishers opt for Adsense and they will want to consider other alternatives.
The following are some of the alternatives to the Adsense program:
- Amazon Associates
- Tribal Fusion etc
There are also other ways to make money from advertising
Text Link Ads- The advertiser pays you for putting a link on your blog.
Infolinks – The advertiser pays you for embedding a link which when a visitor hover will display the ads.
The two types of advertising program above are competitors against Google Adsense. They act as an alternative for publishers and advertisers to the Google Adsense program.
You can try one of the above advertising program if you feel that Adsense is not suitable for your site.
These advertising programs compete with Adsense but they are good alternatives for publishers and advertisers.
Why Google Adsense is the first choice for Publishers or Bloggers
Just like we said earlier, Google has to compete with many other advertising platforms. Despite all these competitions, Google Adsense remains to be the first choice of bloggers.
So why publishers go only for Adsense program?
The main reason why publishers choose Adsense program is because the Google search engine has the highest share of searchers on the web. This is why Google claims the highest authority in the search engine industry. Many bloggers have therefore put their trusts in Google.
On top of that, Google Adsense is user friendly and you can always contact their customer support if you encounter any problem. If you don’t know how to embed the ads into your website, you can contact the Google support team and they will quickly respond to you.
Google is there to offer assistance at all time.
Google allows you to use other third party ads along with its ads on your website, these are the alternatives mentioned just now. You can embed other ads into your website and display the Adsense ads as well to make more money.
Previously, Google did not allow publishers to embed ads into their websites but they now allow it.
Google is doing this to prevent publishers from switching to other platforms.
The one reason why Google is the favorite of many publishers is because it payouts the promised amount promptly. They will send you the payout at the exact time they promised. You won’t have to worry as they will always send out paycheck to your address at the promised date.
The above are some of the reasons why many bloggers prefer to use Adsense program.
Google Adsense in India and USA – A Comparison
We will be performing some comparisons in between the Google Adsense USA and Google Adsense India. What distinguishes the Google Adsense India from the Google Adsense USA? Are the two programs same?
There is actually a difference in the benefits that Indian publishers receive compared to USA publishers. The key difference is the profit margin. USA publishers receive an income that is 2 -3 times more compared to Indian publishers.
The CPC awarded to USA publishers is about 4 times higher compared to Indian publishers. For example, a USA blogger will get $1 per click but an Indian bloggers will be paid only $0.20 for a click n the same ads. Hence, bloggers who reside in the USA will make more money even though the amount of traffic they receive is lower than an Indian blog.
The reason is that USA advertisers are capable of affording a higher rate for per click. Advertisers in the USA can afford paying $2 per click so that the publisher will receive $1.36 and the remaining commission with belong to Google.
On the other hand, advertisers in India are can only afford to pay a few rupees per click. This is why you will usually get paid with a few cents for a click you get from Indian ads.
USA is a first world country with advanced economy so the advertisers there are able to afford more expensive ads but India is still a third world country and its economy is at the developing stage so the amount that the advertisers can afford to pay is much lesser.
As you can see, there is a huge difference between the USA Adsense ad India Adsense.
Top Successful Beneficiary of Google Adsense Program in India
The following are the top Google Adsense publishers in India. They are recognized on the web as a popular celebrity on the web. They have become a role model for many Indian bloggers.
Amit Agarwal – Labnol.org
Amit Bhawani – Amit Bhawani.com
Arun Prabhudesai – Trak.in
Jaspal Singh – SaveDelete.com
Lack of Transparency from the Side of Google
We have just talked about the many benefits of Google Adsense. However, the program has a downside. This is a something that many publishers have been wanting to ask.
Google claims that they are paying 68% of revenue to publishers and keep the remaining 32% as profits. However, they did not reveal the actual amount that the advertisers are paying.
Publishers are not aware of the amount of money that the advertisers have spent on Google.
It is possible that Google is paying publisher much lesser than they claim as they are not revealing the actual amount the advertisers pay them.
For instance, if Google get paid $5 per click from an advertisers, so they should pay out $3.40 to publisher and profit the remaining $1.60.
But, they could secretly by paying only $2.00 to publisher instead of $3.40 and so they are pocketing the $1.40.
The reason for this doubt to come into mind is because Google does not reveal that they pay $5.
The failure to provide this revelation has caused many bloggers to be doubtful. This is the downside of the Adsense program.
Abuse of Google Adsense
Many bloggers worldwide have misused Adsense program. They click their own ads in hope to earn more.
It is a sheer stupidity for a blogger to think he could make money by increasing the clicks on his own. Google will soon find out and ban his Adsense account.
Google has a lot of rules for publishers to follow. Publishers cannot show more than 3 ads on a single webpage. It is a violation against the Google terms if you click the ad yourself or entice other to click on your ads and they could close down your account if they find out.
Using scraped content to display Adsense ads is not allowed by Google and many bloggers who utilize this method have got banned.
Criticism of Google Adsense
Many publishers in Asia has criticized Google for paying not paying the same rate as they pay the USA publishers.
There are also many bloggers who criticize Google for closing down their accounts when they have not violated any of the terms.
It has been in the news that Google closed down accounts without paying an income of more than $100.
Google has also been criticized for allowing porn ads to be shown on websites.
Most important of all, Google did not reveal the amount that advertiser earns as stated earlier.
Google solely depends on the advertisers for their income and they also have to depend on the publisher’s quality content to display their contextual ads. A large portion of Google’s income is derived from the Adsense program.
Google depend on Adsense program to make the income.
Adsense will last for a long time to come.
Here, we have reached our conclusion for a detailed analysis on Google Adsense program.