Why Advertisers Support Adsense

Google is the biggest search engine on the web. It controls over 40% of Internet searches, and with that it controls pay per click advertising (pay per click). PPC involves the advertiser paying a rate for every click through (CTR) in which the advertisers set. As their budget increases, their position increases, and as their position increases, they get more traffic.

This has lead to over 140,000 companies choosing to advertise with them, and they advertise in a number of ways. The first way is through is through appearing on Google searches, the second is through appearing on distributors websites, and the third is through appearing in distributors search results. As advertisers appear in Google searches, the question is sometimes asked. Why do they choose to advertise with distributors as well?

One reason for this is scalability. Those who originally choose to advertise in search results and who were getting a ROI (return on investment) will decide at one point that they need to identify other advertising opportunities. With thousands of websites which have the capacity to display their adverts the advertisers can gain further exposure very quickly.

Another reason why advertisers choose to advertise in Google distributors websites is that it gains them further exposure. 60% of internet users do not use Google, so the advertiser can appeal to a wider audience through choosing to opt for distribution channels. Many website users may be looking to buy a product such as a phone, yet instead of coming across a website which sells such a product, they come across an article. If the article is on a website which contains Adsense then inevitably advertisers can use this channel to penetrate their audience.

Another reason why advertisers choose adsense is because they trust Google. The company is renowned for being an ethical company who are fun to work whilst providing free services to millions worldwide. Advertisers feel that money invested with Google is safe. Despite the evolution of click-fraud and its inevitable disadvantages for advertisers they appear to understand that this is an issue which Google wants to stop and hopefully will eventually. Advertisers are happy that Google admits a problem exits and provides refunds accordingly.

The trust in Google also stems from a trust in pricing. The pricing is set by market forces and therefore advertisers never feel that publishers or Google are overpricing the service. This means that as long as advertisers are able to advertise they will continue to do so, if not at the same rates.

Another strong advantage for advertisers is that they can appear where publishers promote their service. An example of this can seen if you consider a publisher who is discussing the benefits of new IT software. If a software retailer appears on the website then inevitably they will be the likely source from which the web surfer will purchase the product. If the surfer is not interested then you could argue that they would not click on the advert.

The service which Google provides has created an opportunity for businesses of all sizes to advertise. Although the issue of click fraud still plagues the service it is till widely regarded as the best. New businesses attempt to promote themselves on the web, whilst established brands alike choose to attract interest in their service using the same technique.

Click Fraud

If you’re using AdWords or AdSense you must have heard about an emerging practice in the underworld of computing called “click fraud”. But what exactly is click fraud and how is it accomplished?

Well AdSense uses a payment mechanism that awards a certain amount of money to a publisher (someone who holds an AdSense banner on their page) every time a person clicks on the said banner. So click fraud is the attempt to have people clicking the ads just so that they can earn a greater income.

There are people setting up sites for the sole purpose of fraudulently generating revenue through Google’s AdSense program. These users achieve an incredible number of clicks through many methods, some complex and sophisticated and some rudimentary and simple.

One of the most complex is through the use of so called “hitbots”. These are automated programs who emulate clicking the links in AdSense banners (there are some that actually click the banners as well). 

Google’s AdSense protection scheme is by no means perfect and nearly anyone can find the details of surmounting the protection mechanism, ironically just by doing a Google search.

Another, more rudimentary method is to hire a lot of people in a poor country to click the links on your site. This means these people will actually sit all day and just click links so you can earn a fortune. They come from very poor countries like India, and they’re prepared to do so for just $0.50 an hour.

Of course, there’s a problem with this mechanism. Once Google receives a large number of clicks from a single address, the address and the site that had the AdSense banner will be banned, and the illicit behavior might even get the fraudster sued.

To prevent this from happening, many people use a large number of proxy servers for the purpose of clicking. These are basically trojans, located on computers throughout the world (though mostly in the US). What’s even more daunting is that these clicks will appear to originate from an actual computer so such scams are really hard to detect.

And don’t think this happens only in isolated instances. There is a great deal of illegal activity in this domain. 

In fact there’s so much that if search engine companies don’t increase their security with such programs as AdSense, such criminal behavior could become more become even more damaging.

Google has a very strict policy regarding click fraud, and it has sued those employing such techniques in the past. But while the search engine giant tries its best to minimize the risk of click fraud there’s certainly room for a lot of improvement.

It is estimated that more then 20% of the clicks that follow an AdSense link are just done in order to get money from the person paying for the ad. Some people believe the number of fraudulent clicks to be even twice as large.

There are a great deal more schemes involving click fraud, such as groups of AdSense publishers clicking each other’s links (which is referred to as “clicking rings”, or spamming people so that they click such links.

Despite Google still holding click fraud on a leash, the phenomenon is certainly raising concerns for the advertisers on AdWords, but despite this advertising with Google’s AdSense still remains more profitable for the advertiser, as opposed to traditional untargeted advertising schemes.

There are some means of protection against such schemes and all advertisers should be savvy enough to employ them. Many advertisers choose to avoid the content network all together for fear of click fraud.

The Advantages Of Adsense For Search

Adsense for search provides publishers with the opportunity to provide a search tool through their website. The search tool provides results which contain adwords adverts, and therefore publishers can generate revenues.

The effectiveness of this tool for publishers comes in its functionality for website visitors. Those who have browsed resources on a website may return to Google to complete a search. If this resource is contained within a website they are currently on, then they are likely to use the publisher’s website for search, and therefore the publisher can receive returns.

Publishers often claim that having a search tool within their website is a good way to generate Adsense revenues without the concern of diminishing their brand. In the way that a company who sells a product would not want a rival provider having an adsense advert within their website, they will not feel that this disadvantage is relevant. The advantages of adsense for search also lies in the space that it occupies on screen. The results are displayed on a separate page, so publishers do not feel that they are sacrificing space where Adsense would previously appear.

The tool may also lead to visitors selecting the given website as their homepage. If the website contains relevant resources, and still has the functionality associated with Google then the website has broader general appeal. Those who are visiting the website for the first time, and realising it will not satisfy their needs may still use the websites search function.

Adsense publishers often state that they receive less per Click Through with Search. Although this is the case surfers are more likely to be targeted towards adverts than with Google Adsense. If a visitor has have changed the item or topic they wish to search for, and isn’t compelled by the adverts; they can still find what they are looking for as the publisher earns a percentage.

It is also a good tool as publishers can allow their site to be searched using the same technology. Therefore surfers are more likely to also find the resources within the publisher’s website that they require. 

Google has a lesser database of advertisers for Adsense through the selectiveness of advertisers. The search toolbar provides results which include advertisers that do not want to appear in Adsense for content. 

Google for search is also used by large market leading websites where this is rare with adsense. Companies who provide a service or sell a product are more regularly opting to incorporate the search toolbar into their website whilst not feeling that it depreciates their brand.

In fact; many businesses actually feel as though their brand is strengthened through it’s alignment with the Google logo. Other’s who choose not to use the Google logo, may benefit from the customers assumption that the search technology used belongs to the website they are on, and therefore further benefits are reaped by the publisher. 

As adsense is plagued with click fraud, the same is less likely to happen with search. Click Fraud would require the person or persons committing the crime to follow realistic searches, and to avoid any suspicious behaviour. This could be particularly hard, and with less revenue per click those committing click fraud are likely to stay away from search all together.

How Much Money Will I Earn Through Adsense

If you’re looking at Google’s AdSense program you’re surely asking yourself how much you could make from such a program, and you probably think you can’t make as much as you can from traditional advertising schemes.

Google, of course, keeps a great deal of secrecy regarding how much AdWords advertisers pay per each click directed to their site and the same applies for how much AdSense banner holders make from their websites.

While there’s nothing official, rumors circulate around the Internet concerning the amount of cash a website can earn by using AdSense. And many people (illegally) disclose how much they have been making with AdSense. There are stories of people raising over one thousand dollars per month using AdSense. 

There are also stories of people exceeding $100,000.00 per month but it’s a bit hard to believe such stories. The truth to the matter is that if you have a small website and you just want it to support itself, and don’t wish to reach your pocket for its maintenance costs you can probably do this with AdSense.

AdSense is also very good for people who host a lot of pages. Even if the said pages don’t generate a lot of traffic individually, every click counts and you can earn up with a lot of money by doing this. And that just goes to prove that sometimes quantity matters nearly as much as quality.

There’s no telling how much money you’re going to make by using Google’s AdSense but you can sort of tell for yourself, before actually starting, by taking a few things into consideration.

First, is the amount of visits you get every day. While there’s no way to estimate precisely on this, you can generally make a safe assumption that if you have a lot of clicks per day you’ll be making good money.

Also, this depends on what exactly your site is about. If your site is about anything popular (music, sex, whatever) you’re bound to get a lot of banner clicks. These have a coefficient associated with them, called the CTR (click through ratio).

Basically, what it translates to is that if a large proportion of your site’s visitors click the ads you’ll be making more money. And the best way to do this is to have some popular content in your site, ensuring the links direct users towards popular items as well.

Then of course, there’s the position and number of ads on your website. While you don’t want to overdo it, having many links will undoubtedly generate more income for you as a webmaster. Do not however believe, that if you just add a lot of ads in an important portion of your site, visitors could always just skip them (and be assured that many do just that).

There’s something between an art and a science to positioning your ads. People generally look in certain places and never look in others, and knowing this a website author and/or webmaster can do a great deal of things to increase his earnings with AdSense.

All in all, the amount of money you make with AdSense depends on many factors. But if you have a site with interesting contents and/or many pages, and if you see a constantly large amount of traffic every day, you can bet you’ll be making a lot of money with AdSense.

Even if you aren’t in the above categories, AdSense is still worth using because there’s very little hassle in setting it up, and many times it can help financially support the site, whilst being a nice bonus to get through the post at the end of the month.

The Disadvantages Of Adsense

As adsense becomes the most popular publisher program for Price per Click advertising, flaws and disadvantages still exist. Since its inception advertisers have chosen to advertise in search because they felt that visitors would be less targeted. This is a genuine concern and one that makes perfect sense. If you are visiting a website, and notice an advert then the chances are you are not particularly concentrating on its content.

Adsense has also become so popular that people can distinguish them from other adverts. Therefore people may choose to ignore them without even paying them a thought. This has been a hot topic discussed by Bloggers and one that could contain a lot of truth. Many have blamed Google for this, and their decision to include text that says “ads by Google” beneath the advert.

Many publishers also fail to ever gain the revenues they anticipated when starting the program. Those only gaining 30 – 40 visitors a day to their website would be unlikely to earn even one dollar a day. Many advertisers talk of rates such as 1.5%- 5% for traffic to click conversion, whilst only gaining around $0.10 per click. The maths doesn’t work out great, but you can hardly blame advertisers or Google if you are not bringing enough traffic. The key is to bring targeted traffic to your website that are likely to click on adverts, however it is said that it may be easier on other programs which allow figures such as 75% share of advertising revenues for publishers.

Another disadvantage in adsense is that it has almost become tacky. Its appearance on websites that generally appear to be designed in a DIY fashion has lead people to associate them inextricably. This can only be tackled through adsense evolving to be more attractive to the bigger brands, whilst those who currently use adsense are restricted.

Google Adsense also has to tackle the issue of click fraud which is anticipated to count for over 15% of click through rate in content. This has meant that advertiser’s who have been particularly affected, have moved away to other programs or have restricted their advertising to search.

This has meant that there is less competition in content and therefore smaller revenues for publishers. Publisher’s who previously had high yielding ads, are now having to alter their content to ensure they get any adverts at all. This has largely been the fault of the publishers themselves however the issue is one that; if not addressed could bring adsense to its knees. 

Google Adsense also has the disadvantage of not paying enough for their search program. Other similar programs pay higher rates, and if publishers decide to go elsewhere then problems will occur for advertisers and publishers alike. Although Google fail to pay enough for search another major problem with Adsense is that it does not have a powerful database of graphic adverts. Many advertisers prefer showing graphically drive advertisements, however this has yet to materialise. As several other programs exist for PPC graphic distribution problems could occur.

Whilst this may not be a problem for all publishers, many complain that the adverts within their site do not change, so their repeat visitors fail to see fresh adverts so therefore fail to visit them. This is a problem which could be addressed through making adverts rotate. However if adverts rotate then how will that be linked with advertisers paying a rate per click? These are all problems which Google has to address to ensure that Adsense remains the market leader.

Adwords on the other hand also has major advantages, and remains the best in the market. It’s CPC rates can be chosen by the advertisers so that even when they feel that they are not getting the results they expect they can lower their prices whilst still using the service.

Whilst many issues remain with adsense the program still remains the most popular amongst publishers, whilst Google Adwords remains the most popular amongst advertisers; with a database of over 140,000 Adwords will remain on top for the time to come.

Ways To Identify And Tackle Click Fraud

Identifying and tracking examples of click fraud is the first step to eradicating the problem. Click fraud is an enormous drain on the resources of advertisers operating on a national and international scale, estimated to occupy around 30% of all pay per click advertising spend. With so much at stake, its no wonder the search engines are investing so much time and effort into devising solutions.

One way in which Search Engines and other pay per click programme providers have attempted to curb the growing click fraud problem is through introducing IP address repetition algorithms. These formulae are designed to pick up on suspicious click patterns emanating from a singular IP address, which can help to uncover the existence of click farms and competitor-led sabotage, as well as identifying potential fraudsters at source.

However, there is an array of problems with this method of attempting to identify the fraudsters. Firstly, fraudsters logging on through a dialup modem, DSL line or cable modem can almost completely bypass this check, as with every new online session, a new IP address is generated. Furthermore, there is an extensive range of software available to alter IP addresses, which again can be used for ‘cheating’ the algorithm. Cookie and session tracking are other methods by which search engines can attempt to uncover potential fraudulent activity, but again there are ways around these for the fraudsters.

More comprehensive software is being developed which profiles and reports on the browsing habits of each click-through to enable companies to track and monitor suspicious behavior, although this could be seen by many as intrusive and ineffective as anything on a small scale is still likely to go unnoticed, based on the vast coverage of ads across the internet.

The problem of click fraud recently hit the headlines with a class action raised against Google, prompting Google to offer $90million as a potential settlement. Perhaps an acceptance of their responsibilities, Google’s offer goes some way to suggest the extent of click fraud, and its vast costs to the internet economy.

There are a number of self-help remedies that can be implemented to keep an organization out of trouble. The first of these remedies is the reliance on search engine optimization and organic listings. If a site is well and fully optimized, it could eventually realize a ranking that another site is willing to pay $2.50 a click for. Similarly, with organically high rankings there are no clickthrough rates, therefore the costs associated with PPC are not applicable. Although the process is significantly more laborious and takes significantly longer to see results, the SEO process is much cheaper in the long run, and with an estimated 25-30% of all clicks being performed fraudulently, an organically high listing can save money which would otherwise be drained by click fraud for more beneficial reinvestment.

Year on year, as the pay per click advertising market continues to grow and expand, surely click fraud will follow suit. Unless an effective means of preventing click fraud is developed and successfully implemented, buyers will steadily lose confidence in the advertising medium and turn to more effective, less wasteful marketing methods, which would seriously hit the search engines and could potentially threaten the online economy as a whole.