Could Someone Explain The Adwords Concept To Me?

Discussion in 'Pay Per Click Advertising' started by Shadowplay, Jul 24, 2007.

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  1. #1
    I'm new to all this and have tried to research this by reading Adwords explanation on Google and other web sites but there's something I don't get.

    Okay, let's say a website owner wants to advertise his site by using Adwords...

    He bids on a keyword, Google places the ad on searches which contain that keyword, and then user clicks on ad which directs him to the web site that the owner is selling widgets on.

    Now here's what I don't get...I keep hearing that Google pays back the advertiser/publisher. The following was taken from an article on Adsense Arbitrage...

    "Sounds pretty simple you bid $1 for a keyword, direct the traffic to a landing page with ads that pay $2 sit back and watch the profits roll in right? Well there’s a little more to it than that, it’s not rocket science but the more familiar you are with how both Adwords and AdSense works the more likely you are to succeed. Up until fairly recently most publishers were getting a 60% cut of the adwords price, $0.03 on a $0.05 bid."

    What is this 60% cut and what is it for? And in this quote, is the publisher also the advertiser?
     
    Shadowplay, Jul 24, 2007 IP
  2. zodiac

    zodiac Peon

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    #2
    it is the cut that google takes.
    advertiser pays 5 cents.
    publisher gets 3 cents.
     
    zodiac, Jul 24, 2007 IP
  3. Shadowplay

    Shadowplay Peon

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    #3
    I still don't get it. If I'm the advertiser who's paying 5 cents per keyword, who is the publisher? And where is the other 2 cents going to?
     
    Shadowplay, Jul 25, 2007 IP
  4. savagemic

    savagemic Active Member

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    #4
    The publisher is the one who is displaying the ad.

    Lets say Google Adsense is where you are advertising and Google is publishing your ads; there for your ad can show up in either Google Search or in one of there millions of Publishers websites.

    If you go to a publishers website (Not Google Search Engine) and click the ad then the Advertiser pays .05 cent and then the publisher that displayed the ad will get .03 cent and Google gets the other .02 cent.

    But if your ads was clicked in Google's Search Engine then they (Google) get all of it.

    Hope this helps..
     
    savagemic, Jul 25, 2007 IP
  5. CustardMite

    CustardMite Peon

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    #5
    Basically, there are two ways to advertise on Google (PPC). You can advertise on the search engine, in which case you pay them for each click. And you can advertise on the Content Network (also known as Adsense), where your adverts appear on other people's websites (see the top right corner of this page for an example) - here, part of your money goes to Google, and part to the website that you are advertising on. So if you click on the advert in the top-right corner of this page, Digital Point get some money (which is why it's there) and Google get some money.
     
    CustardMite, Jul 26, 2007 IP