we break down differences

If you know there is a demand for your product and your audience is using search engines to satisfy it, then search ads that appear in SERPs are a great option.

Google Display Network ads — also known as banner or display ads — are more visible, perfect for attracting attention as you “rent” your audience’s hanging space online.

Google actually has another advertising program they just released Three Years After Google Ads‘ Begin. This is called Google AdSense.

What is Google Adsense?

Google AdSense allows publishers to place advertisements on their websites and other “real estate” in exchange for a “commission”. These publishers form part of the Google Display Network that advertisers can take advantage of through Google Ads.

In the image below, the recipe website uses Google AdSense to allow 2 advertisers to place banner ads on their site. The Recipe Site is paid by Google for the success of these ads. (More on this later.)

Google AdSense is perfect for website publishers who are already getting traffic and want to monetize it.

Read on as we learn about the main differences between Google Ads and AdSense, who they are aimed at, and what their cost structures are like.

Below, we’ve highlighted some of the main differences between Google advertising options to help you decide how to best distribute your advertising budget.

purpose

platform purpose
Google Ads (Search) Generate traffic to your own site from Google as a search engine.
Google Ads (Display) Generate traffic to your site from the Google Display Network of publishing partners, mobile apps and video.
google adsense Generate traffic for other sites as a Google Display Network publishing partner.

strategy

platform strategy
Google Ads (Search) You know your audience searches for your products or services on Google, and you want to appear in the SERPs for those queries.
Google Ads (Display) Your audience may not know about your product or service and may not be searching for it on Google. However, a visual ad may catch their eye if you can appear on the sites where they hang out.
google adsense Your site is generating traffic and you want to monetize it. You don’t mind “renting” your site to advertisers that your audience might find interesting.

cost structure

platform cost structure
Google Ads (Search) You pay a fee each time a user clicks on one of your ads. This cost-per-click (CPC) can vary depending on the bid you place, your Ad Rank compared to the competition, and your Quality Score. For this reason, more competitive keywords can have a higher CPC.
Google Ads (Display) You can choose the right price for your goals: paying by cost-per-click (CPC), cost-per-thousand impressions (CPM), or cost-per-action (CPA). CPC is better for generating traffic, CPM is better for generating awareness, and CPA is better for conversions.

According to Google, you bid for placements, and “the winner of the auction pays the minimum amount needed to outbid the next advertiser in the auction.” Competition drives up bidding, so industry and highly sought-after publications can cost more.

google adsense Participation in Adsense is free, and you receive commission for clicks, impressions and other interactions you get from users on your site. For this reason, your audience, ad placement, and ad quality will all be factors in how much you can earn from AdSense.

As you can see from the table above, the cost structure depends on a number of variables. We’ll go into more depth below, starting with Google Ads.

Google Ads (Search)

Naturally, there is a high demand for top ad rankings, so whenever at least two advertisers bid, Google starts the auction. keywords that are related to the search queries that users frequently enter into Google,

google advertising keywords

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Advertisers can then categorize keywords and their associated ad copy and web page into groups, choose the group they want to bid on, and choose their maximum bid. Next, Google will select a keyword from the ad pool of advertisers that they believe to be most relevant to users’ search queries and enter it into the auction.

However, Google Auctions isn’t like your typical auction for antiques. They want to level the playing field when it comes to taking advantage of the size of their reach, so instead of the highest bidder always winning the auction, Highest Ad Rank bidder always wins.

AdRank is calculated by multiplying your maximum cost-per-click bid with your ad’s Quality Score, which is calculated by measuring your page’s relevance to keywords, user experience, and click-through-rate. This means organizations cannot achieve top ranking for any keyword simply because they have the largest advertising budget. Their content should be engaging.

Google Ads AdRank

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Google Ads wants to encourage the best advertisers to advertise the best content on their search engine results pages, so they reward ads with high Quality Scores with higher ad rankings and a lower cost-per-click.

Likewise, they want to discourage bad advertisers from advertising bad content, so advertisers with low Quality Scores will usually only get higher ad positions if they pay a higher cost-per-click bid. If they want to pay a lower cost-per-click, they’ll have to settle for falling to the bottom of the ad rankings.

If you win a Google auction, your actual cost-per-click is calculated as the second highest ad rank divided by your Quality Score, plus one cent. You will only pay your maximum bid if you are the only bidder in the auction or if you place the highest bid in the auction but have the lowest Ad Rank. In this case, you will get the final Ad Rank.

Google Ads Bid Pricing

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Google Ads (Display) / Google Adsense

For display ads, as with search ads, advertisers bid for publishers’ ad space in the Google Ads auction. They bid on certain keywords, and if a publisher’s content contains the same or similar keywords, Google will sell their ad space to the highest bidder and bid that publisher whenever people click on the ad on their website. will pay a small part of

However, AdSense does not optimize the ads they display on publishers’ websites, in order to maximize return on investment like Google Ads does for its search advertisers when they want to optimize their advertising campaigns. So, essentially, the amount of money a publisher can make with Adsense depends on how well they place ads on their site and how well advertisers can tailor their ads. .

publishers have Control the type of ads shown, Although. They can choose from text ads, display ads, rich media ads, and more. They can also customize the style of their ad or create their own, which gives them the ability to change the size, color, text, background and border details of the ads that appear on their website. Additionally, they may only place three content ads, three link ads, and two search boxes on each of their web pages.

Google Ads (both search and display) and Google AdSense are effective ways to generate revenue with digital advertising methods – the former as you drive traffic to your site and the latter as you use your site to drive traffic elsewhere We do.

Once you have chosen the right program(s) for you, you can begin your strategy and execution.

Editor’s Note: This post was originally published in March 2019 and has been updated for comprehensiveness.

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