Okay, the first one I’m sure most of you have heard of. And that is, you might not have heard of the official name and that’s contextual advertising. But chances are reasonably good you have heard of Google AdSense before.
Now what is Google AdSense, for those of you who either haven’t heard of it or don’t know too much about it?
Essentially AdSense is an extension of the Google advertising program that you see on Google’s search area. So, let’s just quickly jump over to Google and have a bit of a look.
So, we go to Google.com.au and let’s assume that I’m looking for information on digital cameras. So, I type in my search phrase and press enter. And we get our normal Google results here.
Now what we’ve got here, at the top here, you’ll notice it says sponsored links there. And it also says sponsored links up there. So, at the top you get anywhere from no ads through to a maximum of three ads at the top. And then down on the right hand side you’ll see the sponsored link ads there will be up to eight of them on a page.
Now sometimes you don’t see any because there is no one advertising on them. But basically this is what’s called Google’s AdWords program. And this is an advertising program. This is what makes Google the billions of dollars that they earn.
They offer an amazingly powerful advertising tool that anybody from a one man band person at home who wants to spend $5 a day advertising through a multi-million dollar corporation who has thousands and thousands of dollars a day to spend on advertising. They can use the AdWords system.
Now the way that AdWords normally works is that the ad will show up based on the keywords that are typed into here. And your ad will be triggered by the appropriate keywords. So, maybe I shouldn’t be saying this point because it could be obvious. But sometimes I take the theory that there is nothing too obvious. You wouldn’t probably use digital cameras as a trigger keyword for your ad if you’re advertising plumbing services, for example.
So, you obviously want to use the keywords that are appropriate for your market.
Now this, as I said, this service makes Google literally billions of dollars a year. And for those people, it amazes me I’ve heard say Oh that doesn’t work, I never click on those ads. Well somebody’s clicking on them because Google’s making lots and lots and lots of money out of them.
So, forget about what you might do and remember that the vast majority in the market may be completely different from you, okay?
So, with AdWords ads, they show up on the Google search engine. Now there is a flip side to this, which is called AdSense. And AdSense is the option for the AdWords advertiser to advertise on other people’s websites.
Now I’ll just quickly open up the AdSense site. Now I mentioned here that it’s called what’s called contextual advertising. What does that mean? Well contextual means that when you set up, if you own a website, Google will pay you money if you run other people’s ads on your site.
And the way they will pay you money is if someone’s interested in an ad that’s showing on your site and they click on the ad, you earn some money for that. How much do you earn? I can’t actually answer that question because it varies every ad, every website. And Google doesn’t even tell you how much. But from what I’ve read, people seem to think that on average you’ll get about 50% to 60% of the click charge that they will charge the advertiser. So, if they’re charging seedsandsapplings.com $0.50 a click for this ad, and someone clicks on it, you might get 50% to 60% of that. It doesn’t sound like a lot of money but I have clients that already make well in excess of $1,000 a month just from these kind of ads from their website.
One of my friends and business colleagues, at one stage, was making close to $10,000 a month out of this. AdSense is a very, very powerful tool if you’ve got a good site and you’ve got plenty of traffic.
There are people making hundreds of thousands of dollars a month out of this. So, don’t for one second believe that there is not much money in it.
Okay, contextual, jumping ahead of myself, contextual means that Google can scan your website and it can work out based on the text that’s on your page, what your page is about. And it will show ads that are relevant to your page.
So, what you’ll see is on garden sites you’ll typically see ads for gardening. On travel sites you’ll typically see travel related ads. On dating sites you will typically see dating type ads.
Speaking of which, let me just show you this site is owned by a Canadian guy. And it’s a free online dating site, as apposed to most of the sites out there that charge money for it. This guy makes in excess of $300,000 a month in Google AdSense. So, he has these ads here and his site is all free. And his ads show everywhere, the Google ads show all over the site. So, there is an example of a serious business making serious money using something as simplistic like Google AdSense.
Okay so, you’ll also notice I had another option here. There is another company called Kontera who offers a similar program. I have to be honest, I don’t really know much about Kontera, I haven’t used it. But there is plenty of information on their website. Just go to Kontera.com and you can read all about it.
Now the difference with Kontera is the ads look a little bit different. Basically the way they work, I’ll just run this demo for you. And while it’s cranking up we’ll turn all of this junk off so that we can actually see more of the screen.
Okay so, the way it works is your text is underlined on the page, they automatically underline certain ads. When someone puts a mouse over it, as this little video demo shows, it will pop up a small ad. And if someone clicks on that ad they will then earn some money, okay?
So, it’s a similar situation but it’s a little bit different to the way Google works. Not sure how much money you can make out of this compared to AdSense. Certainly Google AdSense is probably the most popular contextual advertising service out there. So, I’ll have more information about that in another video.