7 Introduction to Google Adsense.pdf

Introduction to AdNetwork
An ad network is a technology platform that mediates the sales of ad inventory
between publishers and advertisers. It is a term used exclusively for digital media
and online ads. You can perceive an ad network as a broker of sorts, collecting an
enormous volume of impressions from publishers and then putting them up for
sale to advertisers.
By: Jaspreet S. Bajaj 1

How Do Ad Networks Work
Ad networks make it extremely convenient for advertisers and publishers to interact with each
other and carry out a meaningful transaction.
1. First, the network aggregates a growing list of publishers who have unsold inventory that
they are willing to sell to buyers, depending on which buyer is willing to pay more.
2. Advertisers who are looking to buy inventory, create a campaign with their requirements.
They can set up the campaigns directly using an ad network’s campaign-management panel.
3. The ad network meanwhile sets up packages to target buyers, based on the publishers that
are part of the network.
4. The advertiser’s campaign contains details about the target audience, budget, frequency
caps, and much more, whereas, on the side of the publisher, they install the ad-network ad tags
on their site.
5. When a match between an advertiser’s demand and publisher’s supply is made, the ad
details that were safely stored on the network are sent over to the publisher, when called upon.

Ad Units: Display Ads vs. Native Ads
There are primarily two kinds of ads to choose from – display ads and
native ads.
Display ads are the ones that clearly stand out on a page as a hard sell.
They are mostly placed right on the top of the page as banner ads,
which means they necessarily look like a banner with the hyperlinked,
image-based ad shaped as a rectangular strip.
On the other hand, native ads are ads that appear as part of the design
and flow of the webpage they are displayed on. They are more subtle
and have a more organic selling approach.

Example of Ad Units

Why Use an Ad Network?
1. Wider range of options
For both publishers and advertisers, the range of options that they have access to is
multiplied when they choose to buy or sell through an ad network.
2. Automatically matched with premium impressions
The process of looking for inventory that meets your demands as an advertiser can be
tedious and cumbersome. An ad network takes on the responsibility of doing that for you; it
looks through the impressions and packages that it has aggregated from top-tier publishers,
and ensures that you have access to premium inventory.
3. Increased ad reach and instant money
There’s something for everyone on an ad network. Advertisers are promised high ROI,
considering they are matched with premium packages by the network. On the other hand,
publishers can generate immediate value through ad networks by putting up their inventory
on sale, as soon as they have set up a webpage.

Choosing an Ad Network – Features to Look for

Top 3 Ad Networks

PropellerAds
Propeller Ads has received incredible reviews from most users. It deals
exclusively with pop traffic. Pop traffic is a display ad methodology that
generates traffic via websites dealing with non-category specific content (such as
Buzzfeed). Brands such as Netflix that are targeting a massive audience, cutting
across demographic barriers, have successfully used pop traffic.

AdSense
Google AdSense is the oldest ad network available.
The concept of an ad network was championed by DoubleClick in 1996, and after
Google bought DoubleClick in 2007 for $3.1 billion,
In 2015, earnings from AdSense was $15 billion, which represents around 23% of
Google’s revenue.
The ads can be published in various formats and have a range of targeting
options.

Adcash
Adcash is a DSP (Demand Side Platform) that focuses on mainstream traffic. It
is both a managed-only platform and a self-managed platform. The former
provides all users with a personal account manager who helps them out with
everything, while the latter allows users to set up everything by themselves.
With a smooth user interface and easy to navigate structure, it is one of the
most user-friendly ad networks in the market.

Ad Network Pricing Options and Formats
• Cost per thousand impressions (CPM)
• Viewable CPM (vCPM)
• Cost-per-click (CPC)
• Cost-per-view for video (CPV)
Formats sold by ad networks can range from basic native and display ads to
video ads, in-image ads, content recommendations, and in-text ads.

Types of pricing options
• CPM: Cost Per Mille
• CPM stands for cost per mille. It stands for "cost per 1000 impressions". In
simple words, CPM refers to how much it costs to have an ad published a
thousand times on a website and is seen by users. The "mille, in CPM" is the
Latin word for "thousands."
• The total cost paid in a cpm deal is calculated by multiplying the Total
Impressions by the CPM rate & then dividing it by 1000.
• CPM Formula
• CPM = (Total Campaign Spend / Number of Impressions) * 1,000
• For example, If a website publisher charges $4.00 CPM, that means an
advertiser must pay $4.00 for every 1,000 impressions of its CPM ads.

Contd…
• CPC: Cost Per Click/PPC (Pay per click
• CPC stands for Cost Per Click. It’s a method that websites use to determine the
average times an advertiser has clicked on the relevant ad. CPC is also a widely
used google adwords metric that advertisers incorporate to manage their
campaign budgets & performance.
• CPC Formula
• CPC = Total Cost / Number of Clicks
• So let’s say your cpc ads get 2 clicks, one costing $0.40 and the other is $0.20,
this totals $0.60.
• You’d divide your $0.60 by 2 (your total number of clicks) to get an average CPC
of $0.30.

Contd..
• CPA: Cost Per Acquisition/Action
• CPA is also a pricing model like CPM and CPC; however, in this method
advertisers only pay when the user completes the desired transaction, such as a
purchase, download or free trial. Therefore, the advertiser only pays when an
acquisition is made, which means Cost Per Acquisition.
• CPA Formula
• CPA = Cost to the Advertiser / Number of Conversions
• However, this means that the publisher takes all the risk for running the ad as
you will be paid based on conversions made instead of just clicks or
impressions. This is often referred to as affiliate advertising & was a widely used
model in the mid-2000s.

Contd…
• CTR: Click-Through Rate
• So while CPC, CPA and CPM all indicate the cost of advertising online, CTR
measures the efficiency. The CTR or Click Through Rate, is measuring the
success of online ads by accumulating the percentage of people that actually
click on the ad to arrive at the hyperlinked website.
• CTR is calculated by dividing the number of users who clicked on the ad by the
number of times the ad was delivered.
• CTR Formula
• CTR = Total Measured Clicks / Total Measured Ad Impressions x 100
• For example, if an ad has been clicked 200 times after serving 50,000 times, by
multiplying that result by 100 you get a click-through rate of 0.4%

Contd…
• CPI: Cost Per Install
• CPI stands for Cost Per Install. CPI campaigns are specific to mobile
applications. In this campaign, ad exchange publishers place digital
ads across a range of media to get the maximum number of the
advertised applications installed. The advertiser is charged the bid or
fixed rate only when the application is installed.
• CPI Formula
• CPI = Total Ad Spend / Number of Installs
• For Example, a $10,000 ad produces 6,500 installs for a $1.54 CPI

Contd…
• CPL: Cost Per Lead
• CPL refers to Cost Per Lead. These costs are associated with any advertising
campaigns that are being run to obtain leads and get the users converted.
• To calculate CPL, advertisers can simply divide their total advertising cost for a
given campaign or ad group by the number of leads generated by that
campaign or ad group.
• CPL Formula
• CPL= Total Ad Spend / Total New Leads
• For example, let’s say you spent $500 on an advertising campaign and obtained
20 leads. With these numbers, your CPL is $25. You spend $25 for each lead you
converted.

Contd…
• CPV: Cost Per View
• CPV stands for Cost per view. It is a pricing model where video advertisements are charged
based on the number of views or interactions an ad receives. A view here is counted when a
viewer watches 30 seconds of the advertised video ad or engages with the ad, whichever
comes first.
• Video interactions involve clicks on the call-to-action overlays (CTAs), banners or cards.
Advertisers can even set CPV bids to tell Google the maximum amount they're willing to pay
for each view.
• CPV Formula
• CPV = Total Ad Spend / Total Number of Views
• For example, if total cost of advertisement is $3,000 and their total number of views is
10,000, then the CPV is 3,000/10,000=.03.
• With CPV advertising, eCommerce merchants can connect with their relevant audience,
making this advertising method worthwhile for brands looking to expand their brand

Contd…
• vCPM – Viewable Cost Per Mille (also known as CPVM – Cost Per Viewable
Mille)
• This pricing model came up as a response to the ineffectiveness of banner ads.
Sometimes ads are located in lower parts of websites, so if a user is only
interested in what’s at the top of the landing page, they won’t be able to see
those ads. In the best-case scenario, they might only see a small piece of them,
even though, they technically count as impressions. In this case, rewarding the
publisher doesn’t seem fair. vCPM lets advertisers pay only for those ads which
really appear on the recipients’ screens.

Contd…
• CPE – Cost Per Engagement
• Even though it seems similar to the CPC model, engagement doesn’t
always end up being a click. The CPE model is used for specific
formats, like expandable hover ads. The engagement is complete
when a user hovers over an ad, so it expands to a larger size of the
banner. Since this can be done accidentally, usually the pointer has to
be held on an ad for at least two seconds for the engagement to
count.

Introduction to google Ads
Google Ads (Formerly known as Google Adwords) is a service that lets
businesses run ads and reach ready-to-buy customers. There are
various ad formats available through the platform, including display
ads, video ads, search ads, and app ads to reach as broad an audience
as possible.
Because of the vast amount of opportunities available, Google Ads
can play a major role in marketing and growing a brand or business
online. This is particularly true with search advertising, where
keywords can be targeted to reach potential customers directly.

Working of Google Ads
Google Ads can help advertisers attract interested, relevant customers
to their websites through targeted search. The process is simple. If a
user enters a relevant or closely related word to an advertiser's product
or service, Google Ads will show that ad in its search results. The idea is
to target users who are most likely to buy a product or service. Ads also
help manage and control advertising spending by offering several
pricing options. With Google Ads, advertisers pay only if a user clicks an
ad and visits a site, making it a wise economical choice.

Features of a Strong Ad
Choosing the right keywords is essential when creating ads. These are the words a potential
customer will most likely search for to find a business or product. Choosing relevant keywords
and categorizing them will help ensure that ads are reaching the most relevant audience
possible.
It's also important to create a high-quality ad that draws attention easily. It should first speak to
the audience in such a way that potential customers have a reason to visit an advertiser's site.
Next, it's time to determine the landing page for an ad. This is the page a potential customer
will see after clicking the ad. A quality landing page is the one that addresses what the potential
customer is looking for.
Now, it's time to track how the ad is performing. Google Ads will show how many people saw an
ad and clicked it, while Google Analytics shows how much time users spent on a site after
clicking an ad.

Introduction to Google AdSense
Placing advertisements on your site is a smart way to generate a
secondary source of income. It's also a simple and largely automated
strategy, as long as you have the right tools. This is where Google
AdSense comes into play.
This Google product enables you to place targeted ads on your blog or
website – and earn money from them. There are close to 14 million
websites running these sorts of ads, so it’s highly likely that you’ve
encountered them before. As it turns out, implementing them on your
own site isn't difficult.
AdSense publishers do it all the time!

How It Works
If AdSense is active on your site, you'll get to decide where these slots are placed.
Then, Google will runs ads in those positions, based on what your site and
content are about. The system is designed to automatically find businesses that
are a good match for your niche and audience.
The result is that your ads are more likely to be clicked on than if you displayed
random advertisements. In turn, your chances of receiving a higher payout are
better. Of course, the boosted income isn’t the only benefit of using AdSense. The
inclusion of highly-targeted ads can also help you provide a more tailored service
for your customers.
Plus, the process is mostly automated – saving you a lot of time. What's more, it's
completely free to join, making it a perfect option for small businesses.

How to Get Started
• Naturally, you’ll need to set Google AdSense up before you can start
receiving the benefits. The good news is that it’s a relatively simple
process.
• First, you'll need to sign up for an account. If you have a business
Google account, you can use that. You'll then need to provide some
contact information – including your payment address and telephone
number.
• Once that's all sorted out, you can create your first ad. Navigate
to Ads, and select Ad Units. You can then click on +New ad unit:

Contd…
• The Text and display ads option will give you access to as many
ads as possible, so let's use that as an example. On the next
page, you can choose a name for your ad:

Ways to Maximize Your Earnings
Place Your Ads Carefully
• Ad placement is a key area for consideration, since various
placements can yield different results. Displaying ads in priority areas
can increase the likelihood that users will interact with them.
• There are a number of placements that are considered effective –
such as right below the initial heading of a page's content or in the
middle of an article. To make the decision a little easier, Google
AdSense released a heatmap of ideal locations:

Contd…

Contd…
• Regardless of your chosen placement, it’s important to always bear
the program's policies in mind. Failing to do so could result in a ban
on your account.
• Above all, it's vital to ensure that your ad placement won’t affect the
user experience of your site. In other words, avoid overloading your
pages with ads, as visitors are likely to find that strategy off-putting. A
few ads per page can go a long way.

Create Quality Content
• Google AdSense bases the advertisements it places on your site on your
content's focus. So if you want ads that are appropriate to your audience, you’ll
need to create well-targeted content.
• To achieve that, you'll want to have a clear target market in mind. There are
many different ways of doing this – but one of the best is to create a clear
buyer persona. This will enable you to carefully define your ideal customer and
then craft content that suits their needs.
• Google AdSense will be able to provide ads that are more relevant to your
website’s content. Those types of ads are more likely to be clicked on by users,
boosting your income as a result.

How Much Can You Earn?
There are several factors that affect how much you can earn from
Google Adsense. Some Adsense publishers earn a five figure income
each month whereas others earn a few dollars per month. Your income
from Adsense depends on:
The cost per click for each advertisement
The number of visitors / page views your site receives
CTR - Click Through Rate for the ads
You have to earn $100 or more before Google will issue a payment to
you. The total is rolled over each month until you exceed $100.

Adsense Tips
Ad Placement
The position of the Adsense advertisements is very important for
increasing click through rates. Google have created a heatmap to help
you decide the best placement for your ads.

Number of Ads
You are allowed to display up to 3 ad units on a page and a single link
unit. If you can, make the most of this and display all of these ads using
different combinations of banner sizes and locations across your page.

Colour of Ads and Blending
Research has found that the best CTRs are achieved by blending the
advertisements to match the style of your website design. For instance,
remove all of the borders from the ads and change the colour of the
text links to match the colour of the links within your own website. This
helps to create the perception that the links are part of the page and
not advertisements.

Google Ads vs Google AdSense
Google Ads Google AdSense
1. It is a called media buying channel 1. It is an advertising sales channel.
2. It is shown on Google SERP (search engine result pages) 2. It is shown on web pages.
3. The advertiser choose the amount they are wiling to pay
per click.
3. It has fixed amount when they pay to publisher for per
click
4. Advertiser only have to pay Google when someone click on
their ads.
4. A publisher get certain share of amount from Google if
someone clicks on their ads.
5. AdWords enables business and marketer to advertise on
Google networks(search, display, etc.)
5. Three-phase working model of Google AdSense space ,
appearance and payment
6. It is for advertise. 6. It is for publisher.
7. AdWords ads are shown on specific search result. 7. AdSense enables adapted

7 Introduction to Google Adsense.pdf

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