Google Adwords Adsense
Evaluation Of The New
First of all...
Let’s get familiar
with the terms
•The AdWords product was launched in 2000.
•At first advertisers would pay a monthly amount, and Google would set up and manage their campaign.
•To accommodate small businesses and those who wanted to manage their own campaigns, Google soon
introduced the AdWords self-service portal.
•As of 2005, Google provides a campaign management service called Jumpstart to assist advertisers in
setting up their campaigns.
In 2005, Google launched a program to
certify individuals and companies who have
completed AdWords training and passed an
Due to the complexity of AdWords and the
amount of money at stake, some advertisers
hire a consultant to manage their campaigns.
So, what is ‘Adwords’?
AdWords is Google's flagship advertising product,
and main source of revenue.
AdWords offers pay-per-click (PPC) advertising, and
site-targeted advertising for both text and banner
The AdWords program includes local, national, and
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.
AdSense is an ad serving program run by Google.
Website owners can enroll in this program to enable
text, image and, more recently, video
advertisements on their sites.
These ads are administered by Google and
generate revenue on either a per-click or per-
Google is also currently beta-testing a cost-per-
action based service.
code to incorporate the
advertisements into a participating
If it is included on a site which has
not yet been crawled by the
Mediabot, it will temporarily display
advertisements for charitable causes
known as public service
announcements (PSAs). (Note that
the Mediabot is a separate crawler
from the Googlebot that maintains
Google's search index.)
Many sites use AdSense to
monetize their content and
some webmasters work hard
to maximize their own
AdSense income. They do
this in three ways:
1. They use a wide range of traffic generating
techniques including but not limited to online
2. They build valuable content on their sites which
attracts AdSense ads which pay out the most
when they get clicked.
3. They use copy on their websites that encourage
clicks on ads. Note that Google prohibits people
from using phrases like "Click on my AdSense
ads" to increase click rates. Phrases accepted are
"Sponsored Links" and "Advertisements".
The source of all AdSense income is the
AdWords program which in turn has a
complex pricing model based on a Vickrey
second price auction, in that it commands an
advertiser to submit a sealed bid (not
observable by competitors). Additionally, for
any given click received, advertisers only pay
one bid increment above the second-highest
The AdWords system was initially implemented on
top of the MySQL database engine.
After the system had been launched, management
decided to use a commercial database (Oracle)
As is typical of applications simultaneously written
and tuned for one database, and ported to another,
the system became much slower, so eventually it
was returned to MySQL.
A database management system (DBMS).
A database management system (DBMS)
is computer software designed for the
purpose of managing databases. Typical
examples of DBMSs include Oracle, DB2,
Microsoft Access, Microsoft SQL Server,
Postgres, MySQL, 4th Dimension and
MySQL is a multithreaded, multi-user SQL
database management system which has,
according to MySQL AB, more than 10 million
How AdSense works
Each time a visitor visits a page with an
iframe tag, whose src attribute includes the
URL of the page.
Google's servers use a cache of the page for
the URL or the keywords in the URL itself to
determine a set of high-value keywords.
If keywords have been cached already, ads
are served for those keywords based on the
AdWords bidding system.
Click fraud is a type of internet crime that
occurs in pay per click online advertising
when a person, automated script, or
computer program imitates a legitimate user
of a web browser clicking on an ad, for the
purpose of generating a charge per click
without having actual interest in the target of
the ad's link.
Click fraud is the subject of some controversy and
increasing litigation due to the advertising networks
being a key beneficiary of the fraud.
Some webmasters create sites tailored to lure
searchers from Google and other engines onto their
AdSense site to make money from clicks.
These "zombie" sites often contain nothing but a
large amount of interconnected, automated content.
Possibly the most popular form of
such "AdSense farms" are splogs
("spam blogs"), which are centered
around known high-paying
Many of these sites use content
from other web sites, such as
Wikipedia, to attract visitors.
These and related approaches are
considered to be search engine
spam and can be reported to
There have also been reports of Trojans
engineered to produce fake Google ads that
are formatted to look like legitimate ones.
The Trojan Horse apparently downloads itself
onto an unsuspecting computer through a
web page and then replaces the original ads
with its own set of malicious ads.
Site-targeted campaigns are a new
enhancement to Google AdWords.
Site targeting lets advertisers choose
individual sites in the Google content network
where they'd like their ads to appear.
Site-targeted ads appear only on the Google
content network, and only on the sites
specified by the advertiser.
Since site-targeted campaigns are tied to
specific URLs, they won't appear on Google.
COM search results pages, on the Google
search network, or on associated products
such as Gmail.
Keyword-targeted ads will continue to
appear in all those locations.
Site-targeted campaigns are a good option
for businesses who want to promote a brand
or a new product to a specific audience.
Many AdWords advertisers will find that
keyword targeting and cost-per-click pricing
continue to best serve their needs, but others
may find site targeting to be a helpful new
A campaign where the advertiser selects
keywords that will trigger ads from the
campaign. Keyword-targeted ads can appear
on search results pages, on content pages,
and on other properties on the Google
Through a huge network…
All AdWords ads are eligible to be shown on
Advertisers also have the option of enabling their
ads to show on Google's partner networks.
The "search network" includes AOL search,
Ask.com, and Netscape.
Like www.google.com, these search engines show
AdWords ads in response to user searches.
The "content network" shows AdWords ads
on sites that are not search engines.
These content network sites are those that
use AdSense, the other side of the Google
advertising model. AdSense is used by
publishers who wish to bring traffic to their
Click through rates on the content network
are typically much lower than those on the
search network and are therefore ignored
when calculating an advertiser's quality
Google automatically determines the subject
of pages and displays relevant ads based on
the advertisers' keyword lists.
AdSense publishers may select channels to
help direct Google's ad placements on their
pages, to better track performance of their ad
units. There are many different types of ads
you can run across Google's network,
including text ads, image ads (banner ads),
local business ads, mobile text ads, and in-
page video ads.
Google AdWords' main competitors are Yahoo!
Search Marketing and Microsoft adCenter.
Advertisers specify the words that should
trigger their ads and the maximum amount
they are willing to pay per click.
When a user searches Google's search
engine on www.google.com, ads for relevant
words are shown as "sponsored link" on the
right side of the screen, and sometimes
above the main search results
The ordering of the paid listings depends on
other advertisers' bids (pay for placement
P4P) and the "quality score" of all ads shown
for a given search.
The quality score is calculated by historical
click-through rates and the relevance of an
advertiser's ad text, keyword, and landing
page to the search, as determined by
The quality score is also used by Google to
set the minimum bids for an advertiser's
The auction mechanism that determines the
order of the ads has been called a
"generalized second price" auction. It is a
variation of the Vickrey auction.
P4P is an abbreviation of the term "Pay for
Performance". The concept was invented at
Overture (now Yahoo! Search Marketing) and
later adopted by their competitors, most
famously Google's AdWords.
Under the model advertisers bid on the rights
to present a search result for a specific
search terms in an open auction.
When someone enters a search term that
has been bid on, the results from the auction
on that search term are presented, ranked
from highest bid to lowest. It is also referred
to as Pay per click advertising.
When this idea was first introduced, there
was a lot of controversy.
Many felt that the results would be irrelevant,
but the auction model has proven to be quite
effective at producing relevant results for
searches where one wants to buy something.
P4P is now seen as the most efficient and
effective way to monetize search engines.
Examples from Turkey
www.tatil.com became the sector leader in
tourism as a result of using the adword ‘tatil’
in google search index.
www.transmed.com.tr increased its popularity
through google by using google adwords.
www.ibakhomes.com reached European
What Future For Google's Publisher
Since 2004 Google has increased the percentage of
total revenues coming from its AdWords network by
24 per cent.
In the most recent quarter AdWords grew 76% from
a year ago, but AdSense grew just 45%.
It makes sense to grow revenues through AdWords
because Google keeps 100% of the revenues.
Google keeps about 20% of its AdSense revenue.
The answer will always be: invest in boosting
And it is a huge market opportunity: Google's
AdSense partner network generated
revenues of $1.35bn in just the first three
months of 2007.
Fast growing tendency of i-marketing concepts and
the increase in online businesses such as eBay,
Amazon and Google ad sense lead to the increase
of their advertisement shares in media against TV
and newspaper advertisements. This shows that the
future of the applications seem to be bright. The
cooperation of the eBay, Amazon and Google
increase the importance of the database
management systems and influences the decision
making of the business firms in the market.