AdSense and AdWords are online promotion programmes that offer an effective means to achieve better sales publicity of products and services, as well as generate profit from this form of advertising. Below we take a look at what AdSense and AdWords are, how they work and what they can do for your company.

Google
Famous for providing web surfers with high relevancy and a virtually hassle free searching experience, Google is arguably the most well-known and best loved search engine available to internet surfers at present. How does Google turn a profit? Sponsored advertising programs are one such way that Google not only makes money but can help your business too. These sponsored advertising programmes are called AdSense and AdWords.

AdSense

1. What Is AdSense?
AdSense is essentially aimed at website owners who can enrol in this Google programme. AdSense allows for text, image and video advertising to be displayed. Google manages advertisements of this nature and helps to generate revenue on a pay per click (PPC) or pay per impression basis.

AdSense makes use of JavaScript code that enables advertisements into a participating website. Small businesses, in particular, who often do not have the resources for developing their own advertising programs or personnel, are benefiting from this service offered to them by Google and generating revenue. AdSense phrases include "Sponsored Links" and "Advertisements". Webmasters are prohibited by Google from using phrases that obviously request for users to click on the advertisements.

2. AdSense Types 

• AdSense for feeds - runs on RSS (really simple syndication) and Atom feeds whereby images are inserted.
• AdSense for search - Google search boxes are placed onto an owner's website for viewers to make use of, and advertising revenue is shared between the two companies.
• AdSense for mobile content - publishers can generate revenue from mobile websites (browser based web services; e.g.: World Wide Web, WAP and i-Mode used through portable gadgets such as cell phones).
• AdSense for domains - advertisements are placed on domain names that have not been developed offering domain name owners a means to make money off of domain names that are dormant.

3. How AdSense Works
AdSense works whereby Google will pay a business for links to their search engine site.  This will be displayed on a company's own website. Google supplies the codes that will result in content relevant advertisements to appear on a company's website. Google shares a portion of the revenue made with a company who is displaying the links provided each and every time an internet user clicks on them.

A webmaster inserts an AdSense JavaScript code into a web page that is intended to display advertisements. With every time that a web page is visited, this inserted JavaScript code creates an IFrame (frames that allow a visual HTML browser to be split into segments, showing a different document) set the to the page's URL (Uniform Resource Locator). Where contextual advertisements (form of targeted advertising on website) are concerned, Google's servers then make use of a cache (temporary storage area whereby frequently accessed data can be accessed quickly) to determine a set of high value keywords. In the case of site-targeted advertisements, an advertiser chooses which page/s an advertisement is to be displayed on.

Payments made work according to a cost per mille (CPM) structure whereby a set amount is charged to display an advertisement for every one thousand views that it receives. Search advertisements (Google search boxes are displayed on company websites) can be added to a list of results once an internet user has requested a search. Company's wishing to make use of the AdSense programme can eliminate fraudulent activity, such as the copying of JavaScript code into other web pages, by specifying which pages advertisements can be displayed. AdSense will, therefore, ignore clicks from those web pages not selected to display the advertisement, eliminating the opportunity for fraud.

 

AdWords
1. What Are AdWords?
AdWords is aimed at advertisers offering a PPC and website targeted form of advertising for both text and banner advertisements. The programme offers advertisers local, national and international distribution from its division based in Ann Arbor, Michigan, USA.  All AdWords advertisements are eligible to be displayed on the Google search engine website, with the option of being able to also show them on Google's partner networks (AOL search, Ask.com and Netscape) in response to user searches. Competitors include Yahoo Search Marketing and Microsoft adCenter.

 

2. AdWords Display Types
When an internet user makes a search request on Google, two sets of links are displayed:

• Organic links - these appear in the main section of the screen displaying search results and are listed in order of popularity and relevancy.
• Sponsored links - these appear on the right hand side of the main results section. These are essentially Google's AdWords which operate on a PPC basis whereby a set cost amount is charged each time an internet user clicks on their link.

Advertisers have the choice of making use of PPC or placement targeted (formerly known as site targeted) advertisements. PPC allows advertisers to be given the opportunity to specify what keywords should be allowed to trigger their advertisements to be displayed, as well as the absolute maximum amount of money that they are willing to pay PPC. 

When a search is conducted, advertisements for these chosen relevant keywords are displayed as either organic or sponsored links. In the case of placement targeted advertisements, advertisers can enter keywords, domain names, topics and demographic targeting preferences and Google will display advertisements they view as relevant websites within their content network. Placement targeting allows the possibility of an advertisement to take up an entire block instead of being divided up between up to 4 ads. This therefore allows an advertiser a higher visibility rate, guaranteed to catch a targeted audience's attention.

 

AdSense & AdWords Benefits
1. AdSense

• AdSense advertising is less intrusive than most banners.
• AdSense advertising content is often more relevant to the website it is being displayed on.
• The AdSense advertising programme helps to build valuable content to websites.
• The AdSense advertising programme runs advertisements that will specifically interest targeted internet users.
• The AdSense advertising programme filters unwanted advertisements.
• The AdSense advertising programme is simple enough that a JavaScript code is all that is necessary to assist with generating revenue.

2. AdWords

• Once an account is created and a small activation fee paid for, advertisements can begin running virtually within minutes of submitting billing information to Google. Creation is, thus, simple and quick and implementation is virtually immediate.
• AdWords allow for easy advertisement performance tracking.
• AdWords is cost effective for any size business. Advertisers only pay for clicks made by internet users and the maximum cost per day is set. Advertisers are never charged more than they have agreed to pay.
• AdWords allows advertisers flexibility and control. Advertising campaigns can be paused; adjustments can be made or cancelled at any time.
• AdWords allows advertisements to specifically target a desired audience interested in a company's products or services.
• AdWords opens the door for advertisers to obtain the maximum return on their advertising investment.

In Conclusion
AdSense and AdWords programmes are becoming an increasingly popular means of advertising online for many businesses alike, whether small or large corporations. Revenue growth potential, brand awareness and more specific audience targeting are all possible advantages when making use of one or the other for internet marketing and advertising campaigns.