Wednesday, October 04, 2006

Adsense Revenues - Streams of Alternative Profits

2006 - Stephen Wright

There are thousands, if not millions of ways to be successful on the internet. Many internet marketing ideas readily exist that someone else has developed and perfected, just waiting to be implemented. One such opportunity is using the Adsense program with none other than Google. Very quickly, anyone who has already started their Adsense program has figured out that just getting your account set up, putting the advertisement snippets on your web pages are a few helpful marketing ideas to enhance your revenue and profits.

According to Google, the Adsense program contains three distinct sections that influence the exact amount of your revenue. These are: Clickthrough rates, Page impressions, and Effective cost per thousand impressions (CPM).

It may seem simple but the truth for many is, by simply adding Google ads to any new or existing website you have will automatically maximize possible revenue streams. Google places relevant CPC (cost-per-click) and CPM ads into the same auction and lets them compete against one another. The auction takes place instantaneously and when it's over Adsense will automatically display the text or image ad(s) that will generate the maximum revenue for a page -- and the maximum revenue for you.

Clickthrough rates are mathematically determined as a percentage of viewers who have chosen to click on your particular advertisement, versus the total number of impressions viewed. This number can be influenced and enhanced by carful wording, structure, and layout of the surrounding information to any given ad. Google attempts to adapt each advertisement placed to appropriately fit their ad to the content, context, and relevance of the web pages themselves. The more the information surrounding the Google ads have in common, the more specific and targeted Google is able to make their ads.

For example, if your web page is designed to focus on bicycles, you would make sure that the work "bicycles" appears prominently through the page, typically with several aspects about the bikes outlined. This greatly increases the likelihood that Google will deliver specific advertisements for bicycles to your ad pages. The net effect is delivery of targeted which in turn increases your clickthrough rate.

Page impressions simply stated are the number of occurrences web pages that contain Adsense ads are viewed for a given period of time. There is no getting around this issue. Unless you have traffic coming to your site, well maximized Adsense activities will do you no good! Increasing traffic to your site is a multi-dimensional effort that involves a multitude of different techniques and efforts. These typically include such things as a reciprocal linking strategy, article submissions, forum participation, directory submission, pay-per-click (PPC) programs, and a carefully planned and implemented search engine optimization (SEO) strategy.

Effective cost per thousand impressions (CPM). The measure of importance for CPM gauges a marketer's average revenues or earnings, per thousand clicks. The goal being to increase the CPM earnings average as high as possible. This ensures maximum profits and revenues. A key to increasing the CPM effectiveness is careful selection of keywords. Depending on the popularity of specific words, Google pays according to this popularity. Keywords that receive millions of clicks pay a much higher rate (per click) than those with low click frequency. To locate additional information about keyword research tools, simply run a search on Google. You will find information ranging from the use of search engines such as Overture, to a wide variety of keyword search tools.

Utilizing these simple techniques, you should be able to substantially increase your profits and success with the Google Adsense program. Combining these with other strategies (such as the location Google ads within a given web page) will dramatically increase both the efficiency and effectiveness of your campaign activities.


Stephen Wright is President & CEO of
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