In March of 2003 Google started a program called AdSense. This allowed people with a Google account to have advertisements on their website(s) for free, and receive some income from it. They don't have to worry about dealing with advertisement companies (other than Google) nor do they have to work at getting the best deals on those advertisements. Basically, you slot out spots for ads, Google then supplies them, you receive some money from every month or several months. Simple as that.
The opposite of AdSense is Google's AdWords which, according to a 2012 report by the company, raised a 1.2 Billion dollar economic impact for other companies in North Carolina alone! With the entire US (all the companies participating) gaining 94 Billion dollars just from AdWords.
How Google gets the number is interesting, since they are estimating how much revenue the advertisements returned to the companies.They reported that businesses "generally make an average of $2 in revenue for every $1 they spend on AdWords." The second thing they assumed, using data from the International Journal of Marketing and Advertisement, was that "businesses overall receive an average of 5 clicks on their search results for every 1 click on their ads." So essentially receiving "$11 in profit for every $1 they spend on AdWords."
With all that in mind, what do you guys think about AdSense? Admittedly it is a bit hard to be against it after hearing all this, but perhaps it is cause people to post things, and create websites, for the sake of money rather than being creative and original. I've tried looking for post about negative impacts, its rather hard to find any it seems. Can you guys think of any ways AdSense/AdWords might detract from the internet? Also, has anyone used AdSense or AdWords before?
Adsense is a cool way for Google to continue getting their name out there and for businesses to get some start up help. I don't know what would be negative about AdSense or AdWords. In the business world, companies create websites for their products in order to get money. So to generate more revenue, Google's monthly check to those business is a win-win situation! Pretty cool.
ReplyDeleteYup, it has really allowed businesses of all shapes and sizes to both get awareness and also to receive revenue for hosting advertisements. The fact that it is all provided by the same company makes it even easier.
DeleteI think Adsense is a great idea for companies to advertise and promote themselves. The only con for Adsense, is that people browsing the internet or browsing their favorite sites may get irritated from seeing different advertisements all the time.
ReplyDeleteAdsense is smart marketing strategy that companies should use to get their name and brand out to the public in a unique way. This marketing technique also provides reports from Google about a company's return on investment. Adsense is also a great way for google to get more customer loyalty, especially from the business world.
Yeah, AdSense is a good idea all around. The only real issue is that they are kind of dominating the market. Its a bit too good to be honest. But its a cheap way for companies to advertise, and a good way for people to get some extra money on their websites. Some companies even get back what they pay! Or even more!
DeleteI think it's a great tool for companies to use, but I think that a lot of people have trained themselves to ignore these types of ads. Similar to commercials on tv, yes it's a great way to get your name out there but after awhile people get annoyed by them and stop listening to them. I very rarely buy something I see an ad of for online or on tv.
ReplyDeleteYeah, the main problem with these ads is.. Do they actually work? I personally have never clicked on one, and I know of no one who has. I'm sure viewing an ad for a new cell phone has a good effect, but what about ads for smaller companies/products? Do they really get what they need for their money? Often times it doesn't seem like they really do. Ads work far better the larger your company is.
DeleteI love Google and everything they do so the Adsense is just another pro. I have not yet used this tool but from the blog it sounds great. It is great from new companies to get their brand name out to the world plus it is free. For a new upcoming business free advertisement is the way to go.
ReplyDeleteI think you might have gotten it backwords. AdSense allows you to post ads directly on your website, and google will pay you for it. AdWords is where you go to place advertisements, but that costs a bit. So AdSense pays you for ad placement; AdWords you pay to place your ads. Hopefully that clears things up.
DeleteThe business I work for uses Good AdWords. We have a website and the company we go through to do our advertising suggested using it to help people searching for "chiropractic care." I don't quite understand AdWords but until this blog I had never heard of Google AdSense. It does seem like another tool that will increase business for companies by getting their name out. Especially being free advertisement will differentiate it from other tools that are available to businesses.
ReplyDeleteBasically, a company will pay for google to post their ads, then google will go to website owners who will then allow google to place the ads there for some money. They work together, AdWords gets the advertisement, then AdSense places it. There is more to it of course, but hopefully this helps you understand if you needed it explained clearer.
DeleteThese tools both sound like great ideas on the surface - internet advertising is on the rise, and Google is a large company with widespread reach. However, it sounds like they may be inflating those number just a bit. Eleven dollars for every one spent? I doubt it. In my marketing class, as well as several others, we have recently been talking about the forms of promotion available to companies, one of which is internet advertising. We learned that many consumers are developing blinders, so to speak, that block out most of the Ads on a page, including banner ads, which is the most popular form of internet advertising. I know I certainly don't pay them any attention. So for Google to say that they can give you such a large profit increase makes me a bit skeptical. I have to say if I were a company looking for methods of promotion I would definitely do some deeper research into those numbers before considering Google.
ReplyDeleteYes, and your response is rather common among many of the dissatisfied users of adsense. If you don't bring in tons of traffic the amount you will gain is almost not worth the trouble of having ads on your site. Not only that, but it is very hard for people laying for ads to really know just how useful it truly is. Traffic always increases, but could they be getting more for their money?
DeleteThis is a very informative post. It definitely broadens my limited knowledge on internet advertisement. Although the effectiveness of AdWords is undeniable, its efficiency could be inflated by Google's statistics. Just my speculation. I'm sure going to try out AdSense in the near future.
ReplyDeleteTriet Pham
Certainly, no reason not to try it out. Although you might only make 30 cents a month money is money right? Maybe the prospects that you will make even more money could be a good motivator for whatever it is you might like to do online.
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