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Here is a block diagram illustrating the relationship between Google AdWords, and the Google AdSense PPC program. |
Vaughn's Summaries | ||
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468 - 768 |
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240 |
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Glossary for Above AdWords-AdSense Diagram | ||||
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Algorithm |
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Internet Protocol (address) | |
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Internet Search Provider | ||
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Cost Per Click |
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Key Word | |
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Cost Per Thousand (Mil) |
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Made For Adsense | |
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Click Thru Rate |
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Pay Per Action (now defunct) | |
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Data Base |
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Pay Per Click | |
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Earnings Per Click |
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Search Engine Results Page | |
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Google Search Algo |
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Universal Resource Locator | |
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Noise and Supposition 2 Separate Bots Secret Sauce - Only Google knows what is going on in the 4 boxes labeled "algo". Each Google algorithm is highly proprietary, and is constantly being tuned for profitability - for Google, the advertisers, and the publishers. What you thought you knew yesterday, can be substantially altered today. What is required is an open mind, diligent reading of Google webmaster forums, and personal experimentation. Google has multiple chefs, each of which favors different ingredients, based upon trends discovered from continuing operations feedback. The chefs may not agree to the solutions required to fix a given problem. New problems will always arise. The algos will continue to change frequently. Don't be surprised by new spices and flavors. AdWords Advertiser Cost Free market - competition determined - higher bids for popular terms Advertiser sets the budget - minimum $ amount per month. Advertiser sets the maximum $ amount spent daily. Some AdWords advertisers frequently run two or more campaigns simultaneously - ---> Higher bids for the Search Results (Google dollars), and ---> Lower bids for the Content Network (Publisher dollars). Google AdWords customers usually bid far less per click on the content network than they bid for Google Searcher clicks, since the perception is that clicks from content pages are worth less than clicks from the Google Search page. However, SOME AdWords advertisers have opted to leave the "content switch" on, because they have gotten excellent results - high traffic and high conversions. Guess-o-matic I sure don't have all the answers, and my assumptions are frequently waay off. But it sure is fun trying to figure it all out. It is an undefined puzzle, which the curious (perpetual student) simply cannot ignore. (Yaa, I know . . . I am curious in more ways than one.) |
AdSense Publisher Payout The "Payout algo" establishes "Traffic Acquisition Costs", and ultimately Adsense Program success. . TODAY'S AdSense Payout Theory 1. Bid amount is most important - first, the money must be there. 2. The V factor - Google's perceived Value of the page - ---> Analyze SERP position for value to AdWords advertiser ---> Analyze Click-Thru-Rate for value to AdWords advertiser 3. Impressions - Raw volume - Increase traffic 4. High CTR = High Value to Google and the AdWords customer (Now you are ready for high-paying TOP AD delivery). 5. Premium (high-volume) AdWords customers get special deals. High SERP + high volume + high CTR = Gravy. The gravy goes to the top performers, in a merit-based system. The way that it SHOULD work, right? .
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