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					Google Adwords Adsense

  Evaluation Of The New
     Advertising System
  First of all...

                   Let’s get familiar
                    with the terms
                    ‘Adwords and
                            •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
    international distribution.
   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-
    thousand-impressions basis.
   Google is also currently beta-testing a cost-per-
    action based service.
The Technology
   behind ?
   Adsense currently uses JavaScript
    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.
MySQL is..

   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
    AdSense tag, a piece of JavaScript writes 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.
Targeted 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
Keyword-targeted ads
   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,, and Netscape.
 Like, 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.
Main Competitors

Google AdWords' main competitors are Yahoo!
 Search Marketing and Microsoft adCenter.
Pay-Per-Click advertisements
   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, 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
 became the sector leader in
    tourism as a result of using the adword ‘tatil’
    in google search index.
 increased its popularity
    through google by using google adwords.
 reached European
   What Future For Google's Publisher
    Network AdSense?
   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
    AdWords revenues.
   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.
To conclude;
 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.

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