I have seen many
people referring Google Adsense program
as Google Affiliate Program
and it’s true because Adsense is a
contextual pay per click program which
is part of Google. This Google Affiliate
Program is based on the pay per click
model that means as a publisher you
will be get paid some amount of money
bid by the advertiser to your Adsense
account when visitors click on the
ads appearing on your website.
So you must be wondering why Google
will pay you when someone clicks on
ads. Google initially started Adwords
to entertain advertiser so they can
display ads on Google sidebar. In
which advertiser has to bid certain
amount of money that they will pay
when someone click on their ads to
Google. Later to display the advertiser
ads on various website Google started
the affiliate program known as Adsense,
in which Google displays the advertiser
ads on publisher website and when
someone click on ads they pay some
portion of bid amount to publisher
and rest they kept with themselves.
So you see its win-win situation for
Google, Advertiser as well as publisher.
The key to success with Adsense is
the placing of ads on pages that are
receiving high traffic for high demand
keywords. The higher the cost-per-click
to the advertiser, the more you will
receive per click from your site.
Obviously, it does not pay to target
low cost-per-click keywords and place
them on pages that do not receive
hits.
One of the most impressive advantages
of using Adsense is it never run out
of ads because of large number of
advertisers associated with Google
Affiliate program.
Another great benefit of using Adsense
is you can control the look and feel
of the ads appearing on your website.
There are various ad formats available
to choose from based on your need
and requirements.
You can also target a particular
section of your website to display
relevant ads based on that. Most important
part is its 100% free to join. That
means you can show ads that interest
your website visitors.
Who will benefit most from Google
Affiliate Program
A website with lots of useful contents
will benefit more from this program
resulting in more revenue. If you
are one of those who runs the website
with useful contents and receive decent
amount of traffic the Google Adsense
program is for you.
The amount of money you will make
from Adsense depends on following
equation:
Revenue (or Income) from an Ad = Clickthrough
value of the ad x Payout Rate x
Clickthrough rate of the Ad x Webpage
traffic
In the above equation, clickthrough
value of the amount of money advertiser
bid to pay per click for the ads.
The Payout Rate is the percentage
of amount Google fixed to pay to the
publisher, Clickthrough rate of the
ad is the number of times the ad is
clicked on in a certain period of
time divided by the # of times it
is displayed during the same period;
webpage traffic is the number of visitors
of your website.
Let’s put some real figure in the
above equation by taking an example:
Clickthrough value of the ad: $0.40
(The advertiser pays 20 cents per
click for the ad to Google)
Payout Rate: 50% of the amount Google
receives from advertiser (this is
not the exact figure just an assumption
based on my knowledge and advice from
internet millionaire)
CTR Rate: 20% (Ads is displayed 100
times and clicked by 20 people)
Webpage Traffic: 500 Visitors a day
Revenue from an
Ad will be: 0.40 x 0.5 x 0.20 x 500
= $20/day that means $600/month and
$7200/year revenue from Google
Affiliate Program “Adsense”.
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