When Will Your Ads Run?
Once your AdWords account has been set up and activated, and your billing information has been entered, your ads will then be up and running within a matter of minutes. This is the best part of the AdWords system. You don’t have to wait a week, a month, or for the next quarter before your ads are in front of customers. Instead your ads are flashing before the eyes of thousands of potential customers within minutes.
2008年6月17日星期二
AdWords here a googd money maker
AdWords
AdWords is an advertising program that is targeted at sellers. It is an effective way to establish your company's online presence. It is very cost effective with a one time start-up fee of only $5.00 followed by a per click-through cost of between 1 cent and $100. This price will be based on what you are willing to pay. If you want to target a specific content genre or website, then you will pay a minimum of $0.25 per 1000 impressions. To help you create the most effective site-targeted ad campaign, AdWords also provides you with a development tool to help you build your ad.
Benefits of AdSense
Benefits of AdSense
One of the most impressive advantages of AdSense is that Google has a huge database of advertisers that are looking for space. Because of this huge base of advertisers, AdSense can provide you with a steady stream of advertisers that can match just about any type of content that you can think of. Advertisers are segregated based on product, service, geography, and company size. This helps to both provide local advertisement opportunities to companies, as well as provide your site with relevant content.
Another no cost benefit that AdSense offers is the use of their Google search box technology. You can add this feature to your website, which will encourage visitors to stay at your website longer, and it will encourage them to return to your site. You can even earn money from this technology. When a visitor enters a keyword or keywords the results appear in a box at the top of your web page. You earn money for every ad that they click on that was generated from their search.
In addition to these benefits you also are able to control what kinds of ads that you want displayed on your website. You can filter out ads from specific company genres, and you can also filter out companies that compete with what you are trying to sell. You can also design the look of the ads that are displayed on your website. You can choose their color pallet, layout, and size of the ads that are displayed, and where they appear on your website. Finally, you can customize your AdSense to run on only certain pages of your website. All of these options allow you to stay in control of how AdSense is displayed to your customers.
Costs Associated With AdSense
There isn't a fee to participate in AdSense, however, you do need to invest time in setting up AdSense features and filters. You will also have to pay for the design, hosting, and domain name of your website. These set up costs should be minimal depending on the complexity of your web site. There are free website hosting sites available, and often home page hosting is provided as a free service with your ISP. To determine if your ISP offers free hosting and web page design assistance you should contact your ISP representative.
Making the Most of This Program
While most ads that promote this type of affiliate program boast of fast and easy money, if you truly want to make money with this program there is going to be substantial work involved. In order for you to make money, you will need to attract visitors to your website. To do this you will need to provide your viewers with quality content that appeals to a large audience. One popular way to do this is to provide a blog of current events, issues, opinion, commentary, etc. Another way is to produce original content that people will drool over. Be creative. There is a lot of competition out there, so learn how to produce content that will top the search engine results, and learn how to use keywords to your advantage in order to attract more viewers.
How to Make Money Using Google's AdSense and AdWords 1
How to Make Money Using Google's AdSense and AdWords
The latest online money-making strategy is Google's AdSense and AdWord programs. Each can improve your income, but first you need to know how they work.
| by Robbi Erickson | October 27, 2005 |
The latest online money-making strategy is Google's AdSense and AdWord programs. Each can improve your income, but first you need to know how they work.
One of the latest online money making strategies is to use Google's AdSense and or to use Google's AdWord programs. Each of these programs has the potential to improve your cash flow, however, you need to know how these programs work before you can make a realistic estimate about the kind of money you will be able to earn, and before you can determine which program(s) is/are best for you. This article will go over the basics of both Google marketing programs including what you need to do to join, how the pay structure is designed, and what you need to do to be successful in each program. AdSense is a marketing affiliate program where you place specially selected Google-generated advertisements on your web page that reflects the information and content of your web page. In return for hosting these ads you are paid based on the number of ad images, click throughs, or purchases made because of your web page. To become an affiliated member of AdSense you first will be required to fill out an application. You will be asked if you will be setting a business or personal account, and what country you reside in. This will help determine what types of ads will be most appropriate for your website. The second category of application questions addresses the URL location of your website and the language your site is in. You then select what Google products that you are interested in. You can select AdSense for content, AdSense for search, or both. Next you enter your personal information including contact information, and payee information. Finally you will be required to set up your password and access name. This is similar to setting up most other online services. Use an email address that is stable and that you will have for a long time, and select a password that you will remember. After entering this information and submitting your application, it will be reviewed. Once your application is approved you will receive a block of HTML code that you will need to program into your website so that AdSense will be able to run and be able to be tracked on your website.Introduction
Google AdSense
Signing Up for AdSense
do you know 156-Page Guide To Making Money with Adsense
This is the main component of the entire system. It's a whopping 156-page ebook with tons of screenshots, images and graphics to help you understand how to quickly and easily set-up Wordpress, as well as how to use it with Google Adsense.
Here's what you will discover:
A Step-by-Step, Straightforward Introduction To Blogging � I will help you overcome your fear of technical information, and get you on the right mindset. Then I will help you understand the basics of blogging and all leapfrog over all the confusing jargon that you're afraid of. - Set-up Your First Wordpress Blog Without Getting A Headache - Cut short the steep learning curve and start your first Wordpress site in minutes. I will show you two popular ways to install Wordpress (videos included) and how to set the basic access permissions (CHMOD) for your system.
- Start Making Money in Your First 7 Days - With our custom themes and instructions on how to use them properly, you'll have absolutely no problem making your first Google Adsense dollar in the shortest time possible. In fact, one of our customers was kind enough to give us his earning stats for his fifth month after reading our guide and following our recommendations:
- Optimize Wordpress For Massive Search Engine Traffic � I cover the two major SEO strategies, "on-site" and "off-site" optimization. I will show you how to make search engines love cisiting your website by setting the right ____ structure for your __________. Then you will discover a little-know strategy to modify your page _____ and your ____ _____ to make it completely irresistible to Google, Yahoo, MSN and other search engines.
- Transform Your Ugly Blog Into A Beautiful Website � Tired of your blog looking like a blog? You will discover how to get new templates for free and make your blog look super-professional. I will reveal a simple tick that will turn a your blog structure into a website structure, while maintaining all the good stuff that comes with a blog. This is so easy to do, you won't believe that you've never heard of it before.
best money way: adsense Costs Associated with AdWords
Costs Associated with AdWords
Because you set your advertisement budget and limits based on what you are willing to pay per click, per day, or per month, you remain in control of your account. AdWords does not require you to commit to a year of service. You simply pay for what you want, no more and no less. When you set up your account you can even select how you want to pay for your advertisement services. AdWords accepts Master Card, American Express, JCB, Visa, and debit cards with the MC symbol or Visa logo.
You can even select when you want to pay. If you want to pay after you have accrued a balance then you will need to set up your billing information and provide payment information at the time you sign up for services. After you have signed up you will receive an initial credit limit of $50. Once you reach this limit your billing method will be charged, and after successful processing of your payment your credit limit will be raised incrementally depending on how many times you hit your credit limit during the month. While not every account will be able to increase their credit limit above $500, AdWords does review each case and request for a credit limit increase.
If you want to pay in advance then you don’t have to worry about your credit limit. You simply pre-pay the amount of money that you are willing to spend for a certain time period, a day, a week, or a month. As your ad receives clicks or impressions your account is debited until your account balance is $0. At this point you can either deposit more money into your account, or wait until your next advertising cycle. AdWords helps you keep track of your account balance by emailing you when your account balance is low.
Because you set your advertisement budget and limits based on what you are willing to pay per click, per day, or per month, you remain in control of your account. AdWords does not require you to commit to a year of service. You simply pay for what you want, no more and no less. When you set up your account you can even select how you want to pay for your advertisement services. AdWords accepts Master Card, American Express, JCB, Visa, and debit cards with the MC symbol or Visa logo.
You can even select when you want to pay. If you want to pay after you have accrued a balance then you will need to set up your billing information and provide payment information at the time you sign up for services. After you have signed up you will receive an initial credit limit of $50. Once you reach this limit your billing method will be charged, and after successful processing of your payment your credit limit will be raised incrementally depending on how many times you hit your credit limit during the month. While not every account will be able to increase their credit limit above $500, AdWords does review each case and request for a credit limit increase.
If you want to pay in advance then you don’t have to worry about your credit limit. You simply pre-pay the amount of money that you are willing to spend for a certain time period, a day, a week, or a month. As your ad receives clicks or impressions your account is debited until your account balance is $0. At this point you can either deposit more money into your account, or wait until your next advertising cycle. AdWords helps you keep track of your account balance by emailing you when your account balance is low.
Keyword Generator and Adsense Niche Database
Keyword Generator and Adsense Niche Database
In Wordpress Adsense System I mention a great deal about keyword research and why it's important if your building blogs to be monetized with Google Adsense.
However, the recent removal of the free Overture / Yahoo Keyword Research tool made it difficult for everyone to avoid paying for expensive software just to get started.
Most keyword research tools out there in the market are way to expensive for someone who's just getting started! If you don't believe me, just do a simple search in Google and see what you come up with!
Quite frankly, you don;t need those expensive, bulky software to do keyword research. The EWP Keyword Generator does it just as good, if not better!
Here's a screenshot of the software screen:
Here's what the EWP Keyword Generator can do:
Takes your primary keyword and searches many different data sources for related keywords
Compiles all the keywords into a neat listing and siplays the amount of searches per month for each keyword
Searches Google, Yahoo and MSN for total amount of competing websites using that keyword
Displays the complete results for you to compare results between the search engines and decide which keywords to delete and which ones to keep
You can then export your keywords to your couputer for lates reference, or for use with other types of SEO software
And you can research an unlimited amount of keywords - no restrictions whatsoever!
Special Bonus: 180 Google Adsense Niche Keywords Database...
If you secure a copy of Wordpress Adsense System today, I'll also give you special access to a secret database of over 180 Adsense Niche Keywords.
With this list, you can discover a lot of niche markets that you probably would NOT have thought of yourself..
This offer is only valid till midnight
Wednesday, June 18, 2008. so take action now and get even more value from us!
Click Here to Secure Your Copy
Module 4: Twelve Step-by-Step Instructional ScreenCam Videos
There's no quicker way to get started than to have someone show you step-by-step exactly how it's done. With 10 compact yet poweful screen cam video tutorials, I'll show you exactly what I'm doing on my computer screen.
You can pause, rewind and play them over and over again till you get it right. Here's what I'll cover in my tutorial series:
How to Register a Domain Name
How to Get A Web Hosting Account
How to Transfer Your DNS Servers
An Introduction to Cpanel and It's Features
How to Install Wordpress with Cpanel
How to Install Wordpress Manually
How to Edit or Create a "htaccess" File
How to Upload and Install Wordpress Themes
How to Upload and Install Wordpress Plugins
How to Use Wordpress "Widgets"
More videos added from time to time..
In Wordpress Adsense System I mention a great deal about keyword research and why it's important if your building blogs to be monetized with Google Adsense.
However, the recent removal of the free Overture / Yahoo Keyword Research tool made it difficult for everyone to avoid paying for expensive software just to get started.
Most keyword research tools out there in the market are way to expensive for someone who's just getting started! If you don't believe me, just do a simple search in Google and see what you come up with!
Quite frankly, you don;t need those expensive, bulky software to do keyword research. The EWP Keyword Generator does it just as good, if not better!
Here's a screenshot of the software screen:
Here's what the EWP Keyword Generator can do:
Takes your primary keyword and searches many different data sources for related keywords
Compiles all the keywords into a neat listing and siplays the amount of searches per month for each keyword
Searches Google, Yahoo and MSN for total amount of competing websites using that keyword
Displays the complete results for you to compare results between the search engines and decide which keywords to delete and which ones to keep
You can then export your keywords to your couputer for lates reference, or for use with other types of SEO software
And you can research an unlimited amount of keywords - no restrictions whatsoever!
Special Bonus: 180 Google Adsense Niche Keywords Database...
If you secure a copy of Wordpress Adsense System today, I'll also give you special access to a secret database of over 180 Adsense Niche Keywords.
With this list, you can discover a lot of niche markets that you probably would NOT have thought of yourself..
This offer is only valid till midnight
Wednesday, June 18, 2008. so take action now and get even more value from us!
Click Here to Secure Your Copy
Module 4: Twelve Step-by-Step Instructional ScreenCam Videos
There's no quicker way to get started than to have someone show you step-by-step exactly how it's done. With 10 compact yet poweful screen cam video tutorials, I'll show you exactly what I'm doing on my computer screen.
You can pause, rewind and play them over and over again till you get it right. Here's what I'll cover in my tutorial series:
How to Register a Domain Name
How to Get A Web Hosting Account
How to Transfer Your DNS Servers
An Introduction to Cpanel and It's Features
How to Install Wordpress with Cpanel
How to Install Wordpress Manually
How to Edit or Create a "htaccess" File
How to Upload and Install Wordpress Themes
How to Upload and Install Wordpress Plugins
How to Use Wordpress "Widgets"
More videos added from time to time..
do you know You Know How To Teach People In a Step-by-Step Way " 1millon US$
You Know How To Teach People In a Step-by-Step Way "
Gobala, When it comes to helping people on the Internet with Wordpress, you are one of the *FIRST* people I ever think of.
Why? Simple! Because you know Wordpress better than you know yourself... that's true! You don't just know Wordpress Gobala... you know how to teach people in a step-by-step way that guarantees they can't go wrong.
If I was ever to recommend someone for people to turn to when it comes to making money with Wordpress, then it would have to be Gobala Krishnan. Good luck with your new products and enhancments mate.
David Cavanagh
About Wordpress Adsense Blogging
Q1: Is It Too Late To Make Money From Adsense?
Absolutely not. Until six months ago I never made more than a dollar with Adsense. Today my income has increased by 300% and continues to grow significantly every month.
But that only happened when I corrected a major, major mistake.
What was my mistake? I was trying to build a website, design a template, write all the content, and do all the marketing the old and hard way using HTML editors and so-called "page generation software".It just didn't work for me...
There was WAY too much new information to study and WAY too many mistakes to learn from. It was a slow and agonizing process that just made me more pissed off every day.
That's when I discovered blogging and Wordpress.
With Wordpress, I can set-up a beautiful website with the push of a button, quickly add content and start getting traffic with very little effort.
Then I discovered that I could also automate everything, set it aside for a couple of months and still continue to make money from it. I can make my website grow every single day without worrying about...
- where to get content
- how to build incoming links
- how to manage thousands of page
This discovery completely changed my life.
Q2: What Is "Wordpress" And Why Should I Care?
Wordpress is a free blogging platform that anyone can use. A "blog" is an online journal, and is proven to be the most effective way of building a website from scratch with no experience.
But don't let the words 'journal' fool you.
It's not just a 'diary' to record your personal experience and daily ramblings.
With a Wordpress blog, you can build an entire website on a particular topic and dominate the entire industry. The gurus call this an 'authority' website.
I call it good news.
Now the average joe like me actually has a chance to build a mega-site with hundreds of pages and thousands of visitors a day...
..and yet still have time for myself and my family.
The reason I'm yakking on about Wordpress is because hundreds of smart entrepreneurs are already using it and I don't want you to be left out!
Look at it this way...
By the time you create your first page they have already created an entire profit-pulling niche website and are making much more than you do now, while spending only a fraction of the time and money you've invested.
The good news is that you can catch up too, if you start taking action now.
Q3: I Want A Website, Not a Stupid Blog!
This question was obviously asked by someone who's really pissed off with all the "make money on the Internet" hype. I'm sorry for the language he used but I can feel the frustration he's feeling.
Can't you?
Even as a full-time Internet marketer I sometimes find it impossible to cope with everything. What more if you're trying to do it part time in the office, or at home before your kids get back?
The answer is simple: Wake up and smell the roses! The Adsense game has changed. It's a numbers game now, and in this game you're simply not going to win if all you have is a website that looks like it was made by a 6-year old kid.
I know some people don't like blogs, but there's a solution for that. With Wordpress, all I need to do is install a free tool, and my butt-ugly blog is transfomed into an attention-grabbing, powerful niche website...
What? Is that even possible?
Yes it is. In fact, your visitors will not even know that they are looking at a blog.
And I will guide you step-by-step on how to do this until you're satisfied. You will look at your "blog" and think "Damn... I have a freaking beautiful website"
You will look back at how you used to build websites thinking "If only I discovered this earlier"…
| "What makes blogging such an attractive option for people who want to make money from Adsense is that you can be up and running in minutes......and Google loves blogs. The company loves the fact that the pages change frequently. They love the fact that a good blog builds a loyal fan base. And they love the fact that most blogs focus on one particular topic. All of that means good search engine rankings, well contextualized ads and pleanty of good revenue that can start flowing in within just days of launch." |
|
Q4: Isn't It Just Easier To Use Blogger or Blogspot?
Easier? Maybe.Better? Definitely not.
Yes, it's easy to set-up a blog with Blogspot.com and get your own Bloggger account. You can be done in 10 minutes flat. Blogger also has built-in functions to add Adsense codes directly into their platform.
In fact I started with Blogger and I won't say that it's bad. But after a while I started to get frustrated with Blogger, and here's why:
- Google Owns Your Content � Google has the authority to shut down your account without warning if they don't like what you're blogging about. You have no control over your own blog. With Wordpress, you own the domain name and the blog is hosted on your own account. You have full control over your content.
- Lack of advanced options � Blogger doesn't allow categories. You can't sort your articles into different focuses. With Wordpress, not only can you add categories, you can also add as many plugins as you want easily and even add audio or video to your content.
- Publishing with Blogger is a pain in the ass � It can take forever to post articles on the Blogger platform, especially if you're making changes to the entire website.
- You can't brand yourself � Of course with Blogger you can publish to your own domain, but you can't do significant changes to it. I can identify Blogger sites immediately, but with Wordpress you can customize and brand almost anything you want. You can also install Wordpress on an existing website as a sub-domain or sub-directory if you want.
- Limited promotion options � When you post in Blogger, you can only "ping" a limited amount of sites, whereas with Wordpress on your own domain you can ping as many blog directories as you want, and start getting more traffic.
In fact, there are other platforms like MSN Spaces, Typepad, and even MySpace. But these solutions are severely limited.
When you start using Wordpress to build your Adsense websites, you'll soon discover what I mean. It's something you need to experience for yourself.
I can tell you one thing though � when you go Wordpress, you don't go back.
Q5: I hate writing, so how do I build ADSENSE sites?
Good! You don't need to be a writer to create a website with Wordpress. In fact it may even be better if you can't write a proper sentence in English.
When you're using Wordpress, you can:
- Get others to write your content for free or for a small fee.
- Secure great original content for cheap, use them with your name on it, and become an instant expert.
- Download articles automatically from article sites and post them to your Wordpress blog.
- Use other people's content legally and ethically, and they will even thank you for it.
- Automate page creation so that you don't need to post every day, and yet your content is published regularly, for years if you want.
Today Making Money From Adsense and Wordpress
Making Money From Adsense and Wordpress
I've seen a few "systems" that teach you about blogging, Adsense and even Wordpress. I've bought a few...
But what I realized is that none of these "great" products actually showed you how to create a Wordpress niche website from a standing start, with no technical knowledge whatsoever. They give you half-baked information and then ask you to buy their other, more expensive product...
I told myself, "This has got to stop"...
I spent more than 6 months to study, test and try out all the information I needed. Then I locked myself up to figure out how to explain this information the the ordinary Joe without making him run away in fear...
I finally created the most complete, yet easy-to-understand system for building Wordpress niche websites...
The Wordpress Adsense System was developed to jumpstart your experience with Wordpress. It will help you master Wordpress and start making money from Google Adsense faster than ever before.
If you're skeptical and want to see some content first, you can download 2 free chapters right here.
Just fill in the form on your right and I’ll send them to your email.
Now...here’s a glimpse of the value you’ll get in the full version of the Wordpress Adsense System:
I've seen a few "systems" that teach you about blogging, Adsense and even Wordpress. I've bought a few...
But what I realized is that none of these "great" products actually showed you how to create a Wordpress niche website from a standing start, with no technical knowledge whatsoever. They give you half-baked information and then ask you to buy their other, more expensive product...
I told myself, "This has got to stop"...
I spent more than 6 months to study, test and try out all the information I needed. Then I locked myself up to figure out how to explain this information the the ordinary Joe without making him run away in fear...
I finally created the most complete, yet easy-to-understand system for building Wordpress niche websites...
The Wordpress Adsense System was developed to jumpstart your experience with Wordpress. It will help you master Wordpress and start making money from Google Adsense faster than ever before.
If you're skeptical and want to see some content first, you can download 2 free chapters right here.
Just fill in the form on your right and I’ll send them to your email.
Now...here’s a glimpse of the value you’ll get in the full version of the Wordpress Adsense System:
How to get the most out of AdSenseThere are three obvious ways to increase
How to get the most out of AdSenseThere are three obvious ways to increase your income from Google AdSense... 1) Increase trafficCreate more keyword-focused pages. See Building: Site Content: Choosing Keywords for more information on finding the most profitable keywords. 2) Increase click-through rateUse simple design with the AdSense ads displayed prominently. According to Google, ads in the skyscraper format works better (especially on the right side of the page). Focus to only one topic per page - that should make it easier for Google to serve up the more tightly contextual ads which means better click-through. 3) Increase the value of clicksOf course, you can't do it directly. However, you can find some "expensive" keywords and create pages optimized for them, within your site's theme. These keywords are highly competitive and you'll unlikely get high ranking for them, but visitors will arrive from other "inexpensive" pages and click on Google's ads. To estimate the relative value of a keyword, search for it on FindWhat. The search results page will show the cost for each listing.
do you nkow How Yahoo and Google Make Money
How do Yahoo and Google make money? This is a frequently asked question, so let me give a high level overview.
The short answer is targetted advertising. Why and how does it work?
What do you use Google for? Search. Let’s look at search. Say the user searches for “mountain bike San Diego”. Chances are he’s looking for a place to go mountain biking. Or, perhaps he’s looking to buy a mountain bike. Google will go and find the most relevant Web pages on that topic.
Now imagine you own a mountain bike store. If somebody told you they would let you show your advertisement to this specific user exactly at the moment he’s expressed interest in mountain bikes, while it’s foremost in his mind, would you be interested? Sure you would. That’s what Yahoo and Google do: not only do they find the most relevant Web pages, they also find the most relevant ads and show them to the user in the form of Sponsored Links.
The sponsored links are actually relevant, so some percentage of the people that see them click on them. Note that this is very different from Banner Ads - those are generic ads targetted at a demographic (or sometimes not targetted at all).
Each time a user clicks on your ad, Google or Yahoo has effectively sent you a lead, someone who’s likely to buy something from your mountain bike store.
This lead is valuable to you and you’re willing to pay for it. But how much?
Turns out you’re not the only mountain bike store in San Diego. I own a store too, and I want that same lead. I’m willing to pay for it too.
So how do we determine the price? Very approximately speaking, by bidding on it. It’s sort of an auction.
I want to advertiser my mountain bikes. I go to Yahoo or Google and tell them: every time somebody searches on “mountain bike”, show my ad. I do this by specifying a bunch of terms related to mountain bikes, and I provide the text for my ad, and a link to my Web page. Something like:
keyword: mountain bike, offroad bike, offroad bicycle
advertisement: buy my wonderful mountain bikes, they’re the best
url: www.mywonderfulmountainbikes.com
You own a mountain bike store too, so you do a similar thing.
Along with my advertisement, I specify how much I’m willing to pay for each lead. What is a lead? It’s defined as a click on my ad. So my bid says I’m willing to pay X each time someone clicks on my ad.
Note that I pay for clicks, not for my ad being shown (aka impressions). It’s a good deal - I only pay if the user is interested enough in what I offer to click on it.
I specify a bid. You specify a bid too. Approximately speaking, the higher the bid, the more prominently/more frequently the ad is shown. Other factors go into picking the actual ordering of the ads, but bids play a big part.
So there you have it. Lots of advertisers bidding on many millions of keywords, and hundreds of millions of users doing billions of searches, a small charge each time somebody clicks on an ad, and you get a big business.
There are also contextual ads, the ads you see on blogs and other random web pages. Same idea, except instead of using the user’s search term to select the ads, the contents of the page you’re looking at is used. So if you’re looking at a page about mountain bikes, you’d see ads related to mountain bikes.
There’s more to it than this, but to a first order approximation, this is the core of the business.
The short answer is targetted advertising. Why and how does it work?
What do you use Google for? Search. Let’s look at search. Say the user searches for “mountain bike San Diego”. Chances are he’s looking for a place to go mountain biking. Or, perhaps he’s looking to buy a mountain bike. Google will go and find the most relevant Web pages on that topic.
Now imagine you own a mountain bike store. If somebody told you they would let you show your advertisement to this specific user exactly at the moment he’s expressed interest in mountain bikes, while it’s foremost in his mind, would you be interested? Sure you would. That’s what Yahoo and Google do: not only do they find the most relevant Web pages, they also find the most relevant ads and show them to the user in the form of Sponsored Links.
The sponsored links are actually relevant, so some percentage of the people that see them click on them. Note that this is very different from Banner Ads - those are generic ads targetted at a demographic (or sometimes not targetted at all).
Each time a user clicks on your ad, Google or Yahoo has effectively sent you a lead, someone who’s likely to buy something from your mountain bike store.
This lead is valuable to you and you’re willing to pay for it. But how much?
Turns out you’re not the only mountain bike store in San Diego. I own a store too, and I want that same lead. I’m willing to pay for it too.
So how do we determine the price? Very approximately speaking, by bidding on it. It’s sort of an auction.
I want to advertiser my mountain bikes. I go to Yahoo or Google and tell them: every time somebody searches on “mountain bike”, show my ad. I do this by specifying a bunch of terms related to mountain bikes, and I provide the text for my ad, and a link to my Web page. Something like:
keyword: mountain bike, offroad bike, offroad bicycle
advertisement: buy my wonderful mountain bikes, they’re the best
url: www.mywonderfulmountainbikes.com
You own a mountain bike store too, so you do a similar thing.
Along with my advertisement, I specify how much I’m willing to pay for each lead. What is a lead? It’s defined as a click on my ad. So my bid says I’m willing to pay X each time someone clicks on my ad.
Note that I pay for clicks, not for my ad being shown (aka impressions). It’s a good deal - I only pay if the user is interested enough in what I offer to click on it.
I specify a bid. You specify a bid too. Approximately speaking, the higher the bid, the more prominently/more frequently the ad is shown. Other factors go into picking the actual ordering of the ads, but bids play a big part.
So there you have it. Lots of advertisers bidding on many millions of keywords, and hundreds of millions of users doing billions of searches, a small charge each time somebody clicks on an ad, and you get a big business.
There are also contextual ads, the ads you see on blogs and other random web pages. Same idea, except instead of using the user’s search term to select the ads, the contents of the page you’re looking at is used. So if you’re looking at a page about mountain bikes, you’d see ads related to mountain bikes.
There’s more to it than this, but to a first order approximation, this is the core of the business.
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