Everyone knows that there is no such thing as free advertising, and with the dawn of the internet era advertisers have had to think carefully about how to translate television and paper advertising into a cost efficient and targeted advertising campaign.
The key to Google's success, and what has allowed it to operate so many different ventures, the majority of which are free of charge is Google AdWords and Google AdSense, two systems that are interconnected and together form the foundation for one of the most successful companies on the planet.
What is Google AdWords?
Google AdWords is a system by which companies can define a set of keywords that they want their advertisement to be displayed for and then bid on how much they are willing to pay for that advert to be displayed to that audience. This can range anywhere from $0.01 up to $30+ per click! That's right, the company only pays Google each time someone actually clicks on the advert. Now where are these adverts displayed? They are placed in two places, the first is on the search engine results page when you type in that keyword (if the bid is high enough), or the advert is distributed to websites running AdSense based on the keywords found on that page! This always guarantees targeted traffic will be clicking on the links, a very valuable thing as any advertiser will tell you!
What is Google AdSense?
Google AdSense is a way for website owners to add value to their existing websites by showing AdWords adverts on their site. The whole system is almost entirely automated by Google, all the person wanting to include Google AdSense adverts on their site has to do is add the provided code to the place on their website they want the adverts to appear. Every time someone then clicks on one of the adverts on your site, the company doing the advertising pays Google the bid amount, Google then pay you a percentage of this for hosting the advert on your site. Currently on my site which triggers lots of computing related keywords I earn $1-$2 per click.
How to get the most out of Google AdSense?
Google very generously provides a keyword tool on their AdWords site that allows you to view the estimated cost per click (cpc) for any keywords you type in. Using this you can attempt to locate a niche that has a very high cpc, one example is the insurance industry, which can get up to $32 per click, and build a site around that subject then drive as much traffic as possible to it. It doesn't take many clicks per day to make a very good living off one such site!
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