The Negatives of Pay-Per-Click Advertisements

Kirt Christensen — Fri, 19 Oct 2007 05:33:51 +0000

by Kirt Christensen

In the time after Google Adword first opened up shop and people started flocking to the pay per click advertising has developed into the most popular way to advertise on the internet. An advertiser can create an advertisement and the search engine will take over and do the remainder of the work. That is a deal that a great many advertisers have been unable to turn down.

In concept the relationship is one of symbiosis. Ads are written by the advertiser and used by the search engine to help find potential buyers. The advertiser gives a fee to the search engine when the potential buyer chooses to visit the advertisers site.

When web surfers put a search term into the browsers search box the search engine displays the advertisers ads at the same time as the search results are displayed.

The truth is that it isn’t quite that simple.

For marketers looking for keywords, this is not always a simple process. It is not always just a matter of heading over to the search engines keyword selection tools. The keywords they have there are often overused and will produce many, many search results pages.

Since the average web surfer is going to lose interest in the hunt for information after the first five or ten pages it is important that an ad be among those five or ten pages in order to realize a profit.

Things get harder her because ads that are displayed with the first search results are there because the marketer has said he will pay the search engine more each time a searcher clicks on his ad than the other marketers promised to pay.

The standard form of advertising allowed the advertisers to have an ad displayed for a set amount of time for an established fee, regardless of how many people saw it. Advertisers realized this was an inefficient way to get customers.

This brought about pay-per-click advertising. In this form of advertising an advertiser only paid a fee when his ad was chosen. That way they could make a better profit if their ad was chosen on a regular basis.

Of course, from there the next logical step was to ensure the ads that would bring in the greatest amount of money every time they were chosen were among the top search results; therefore, in order for an ad to be among these top results the advertiser must be willing to “out bid” their competition.

The expenses for a pay per click ad campaign can compound rapidly without the advertiser even realizing what is going on because when your advertisement is in one of the first ad spots on a search results page it can get a lot of unprofitable interest and very little paying customers. That is wasted advertising budget.

Pay-per-click advertisement has potential to be a perilous obstacle course for an unaware advertiser to make his way through; it is a more complex enterprise than many marketers say it is. The good thing is that there are some great resources available (as well as other ways to advertise) out there on the internet for those sharp enough to use them.

About the Author:

Having over ten years of experience in Pay Per Click Management , Kirt Christensen, will share his experience in PPC management, by presenting you tips he found that are effective (and some that aren’t). http://www.managemypayperclick.comunique content ‘ppc management’ articles are available with free reprint rights.

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Exactly What is Google Adsense?

admin — Sat, 28 Oct 2006 16:42:15 +0000

We shall learn about Google AdSense in this short article. Even for a person who is fully into Affiliate Marketing business, he should plan to increase his income through various sources. Google AdSense is an extremely lucrative source of income. Some of the Internet Marketers have AdSense as the primary or even the only source of income. But, I am completely against the idea of having AdSense as the only source of income. As a matter of fact, you should never rely on only one source of income as it is very risky and an unprofessional model of doing business.

Most of the Internet marketing community is at least somewhat familiar with Google Adsense at this point. Google Adsense can be a very lucrative venture for some so having a better understanding of Adsense is worthwhile.

Google Adsense is the small contextual ads that are published on web sites with the consent of the web site’s owner. The ads are created by publishers that are selling products and/or creating brand awareness. The ads that are created are called Adwords and they are also a Google sponsored program.

Google Adwords and Adsense run hand in hand. Every time someone does a search on Google or one of their partner networks and clicks on one of the sponsored ads, then the person who created that ad will pay Google a predetermined price. This is where the term “pay per click” comes from.

Now the beauty of Adsense is that the person who owns or hosts the web site that the Adwords ads appear on will split the amount of money that Google receives from the creator or publisher of the ad. It is a well guarded secret what the percentage of the split is, and it does vary, but for our purposes let’s say it’s 50%.

If a publisher is willing to pay .40 per click for his Adwords ad, then the host of the website that welcomes Adsense can expect to see roughly .20 every time someone clicks on that ad that appears on their site. The other .20 is kept by Google. So basically, it is a partnership of sorts between Google and web site owners.

Adsense is shown in the most relevant way possible. What does this mean? Well, probably the best way to illustrate this would be through an example. Let’s say Mary had a website featuring women’s clothing. If Mary wanted to monetize her web site with Google Adsense the ads that would be shown would all be related to clothing, and more precisely, women’s clothing. If a page of her site was dedicated to women’s shoes, then the Adsense ads appearing on that page would be for women’s shoes.

So how is the price per click determined? This is where the Adwords side of the equation kicks in. Adwords publishers bid on keywords. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. Keywords range anywhere from a few cents to in excess of $50 per click.

It is not very hard to see how someone with a web site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their site. Many Internet marketers will create web sites with specific content for the sole purpose of attracting high paying Adsense ads. Top Internet marketers can earn in excess of $10,000 a month on Adsense, and you can too!

As an Affiliate Marketer, you too can benefit from Google AdSense. Here, we shall see two different arguments, for and against Google AdSense appearing on an affiliate products page.

As per one argument, on pages where affiliate products are advertised, if AdSense is also shown, then it draws people away from clicking the affiliate products shown. In other words, instead of earning, maybe, $75 if the person had clicked an affiliate product, you are earning, maybe, a few cents through the AdSense click. So, as per this argument, AdSense is bad on an affiliate page.

As per the second argument, if a person was not interested in purchasing any affiliate product, then he will simply go away from the page or even from your website. Under these circumstances, if you had Google AdSense, you could at least give a chance to the visitor to click a Google ad, thereby, earning you a few cents in the bargain.

My suggestion is that avoid AdSense on a sales page. Also, try to position AdSense at a less conspicuous place on a page which features an affiliate product review, etc. Here, you are giving a chance to the visitor to click an Google AdSense ad but, at the same time, you are retaining the attention of the visitor on the affiliate product review, in question.

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The Negatives of Pay-Per-Click Advertisements

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