Tag Archives: Google

Adwords vs. Adsense

Hello and welcome back to Three Money Methods!

This is Jonathan Kraft and I wanted to take a quick minute to show you the difference between Adwords and Adsense.

I think a lot of people are very confused about this and that’s ok; you’re just getting started with this or maybe you’ve been around for a while but not really familiar with what goes on with Adwords versus Adsense.

Adwords, the idea of Adwords is … let’s say this is your website here and you want to drive traffic to your website. Lots of different ways you can do that but one of the ways is Adwords. Adwords run in a few different places; they either run on Google or they run on what’s called the Content Network.

So let’s say you have a website and you want to bring traffic in, you go to Adwords and say “hey, I want to bring traffic into my website” and they say “ok great, why don’t you run some Adwords. Tell us if you want to put them just on Google or if you want to put them just on the Content Network or if you want to put them both places and we’ll be happy to do that for you.” So that brings traffic into your website. So Adwords is really a way to bring traffic into your website.

Adsense is something … let’s say this is your webpage. When you go to Google and you say, “hey Google, if you’ll give me some code to put on my webpage, I’ll put a little ad box over here and I’ll put one down here. You figure out what the content of my webpage is about and run some ads that are relevant to the content of my webpage.”

Google comes around and looks at the webpage and says, “I think your website is about …. dogs.” And they go back into the database of advertisers who are running ads with Adwords and they place those ads in the spaces on your website so that those advertisers can get relevant clicks from your website about dogs. There are some advertisers who want to run advertisements about dogs. Let’s say somebody comes to your website and they click on this ad here, they pay Google one dollar and Google, depending on the ad and a whole bunch of other stuff, Google might pay you .30 to .50 cents of that click because it was because of your website that Google got that click. That’s how Adsense works.

Now there are lots of people who make a lot of money with Adsense but the way they do it is by having lots and lots and lots of traffic coming into their website. So that’s one of the key things we work to teach you with Three Money Methods and one of the things I really try to help you learn is how to get traffic to your website; so regardless if you’re doing Adsense or running banner ads or any other method really on your website, you really need traffic coming into your website in order to profit from a program like Adsense.

So that’s the difference between Adwords and Adsense.

Adwords is a way of getting traffic to your website and Adsense is a way of profiting from the traffic that’s coming to your website.

I hope that clears things up. Again, this is a relatively quick video. But I hope that clears things up. If not, please post down below, down below the video here, if you’re on the Three Money Methods site, you’ll see a place where you can actually go and post a comment here. Just ask your questions there and we’ll try to answer them either in a future video or I’ll try and come through and answer them in the comments here.

Thank you very much for taking the time to visit ThreeMoneyMethods.com. Please come back for our Traffic Tuesdays where we are going to be teaching you how to get lots of traffic to your website so that no matter how you want to make money, there are three ways to make money from your website.

Those ways are:

  • Selling the ad space on your website and in this case, that’s what Adsense is, you’re basically selling ad space on your website;
  • Number two would be selling someone else’s products through Affiliate relationships or JV Partnerships which are basically, in a lot of cases, the same thing; or
  • Selling your own products or services.

So in this case, what we’re talking about is selling ad space on your site – that’s what Adsense does. One way you can bring traffic to your website is through Adwords but you profit from people who are running ads in Adwords by selling the ad space on your site as an Adsense “publisher” basically using that space to generate profit and to also generate leads for people running ads in Adwords.

Hope that makes sense.

If you have any questions, again please feel free to ask them below the video here and we’ll look forward to seeing you back here again at ThreeMoneyMethods.com.


How to Make Money With Adsense: How Adsense Works

In this ThreeMoneyMethods Traffic Tuesday video, we explain how Adsense works.

We are here today to talk about Adsense and what Adsense is. The reason for this today is actually I got an email from Sandra Marsh and she said, “hey Jonathan, thanks for the links (she was talking about the Three Money Methods report). But I was wondering if you could provide me with more on how these advertisements work.”

I did not quite understand the question, so I sent back an email to Sandy and I said, “which advertisements?”

And so she said, “Adsense and stuff like that; you mentioned it in the PDF.”

So, what I realized is that I’m starting too complicated; I need to start simpler and help people understand really what Adsense is and how it works. So Sandy, since you’re the one who was brave enough to ask the question that other people were not brave enough to ask even though they had the same question; we’re going to go ahead and do a quick video here to explain how Adsense “and stuff like that” works!

So on one side, you have someone called an advertiser. This is someone who has a product or a service that they want to sell. In the middle, you have Google and lots of people visit Google every day, but not everyone visits Google! Some people visit websites; websites about … whatever.

Let’s say this advertiser has a product dealing with digital cameras, let’s just say cameras over here. They’re trying to sell cameras. What they’re really good at is making cameras, making good deals on cameras, finding better technology for really producing good quality cameras.  So what they do is they say, well, there are lots of people; they’re visitors, here’s the other player in this, there’s visitors who are also called customers. There are lots of visitors or customers who come to Google everyday.

Now this advertiser knows that there are lots of visitors coming to Google every day and so they say, hey Google, could we run some advertising with you? And Google says, sure, no problem! I won’t charge you just to run an advertisement, I’ll only charge you when one of those visitors comes to me and searches for your product and then if they click, I’ll charge you. But if they don’t click, I won’t charge you anything. This is one way this works. There’s a lot of different ways that this works.

But the visitor goes to Google, looks for cameras; the advertiser runs an ad on Google and the advertisement redirects somebody actually back to a camera page. Now let’s use an actual example of Google to see how this is working.

So, we’ll do a search at Google for “cameras” or let’s go even more specific than that, let’s go “Nikon cameras.” Here are some people who are advertising: Walmart.com, OfficeMax.com, and BestBuy.com; those are all “sponsored” links. Then over here on the right-hand side, we also have Nikon digital cameras from Ritz Camera, they’re the advertiser; and we have Nikon digital cameras from Dell, eBay, Amazon, eCameraFilms.com, BHPhotoVideo (I love those guys by the way) and Nextag.com.

Those are all people who are paying to advertise on Google. Those are the advertisers in our equation; Ritz Camera and all those guys, that’s the advertiser and Google is the company they’re going to, to try to get people. Google doesn’t make money from these advertisers in most cases; in this example let’s say, until I actually click on one of these ads and I’m not going to click on that ad because that would cost Ritz Camera and I’m not actually looking for a Nikon digital camera at this point.

However, there are also people on the other side of this equation who have websites and I may not go to the advertiser’s website. I may not click on Walmart or Office Max or Best Buy, I might click on Nikon USA or I might just go to someone … here’s DigitalCamera-hq.com for example, I might just go to this website. So I might go to DigitalCamera-hq.com or I might go to some of these other websites. For example, I might go to DigitalCameraInfo.com because that sounds like maybe a good site for me to find out some more information.

Well, if I go to DigitalCameraInfo.com and if you look up top here, you’ll see this thing that says, Ads by Google. There’s another box over here that says, Ads by Google. But there’s one box up top here — an ad box with Ads by Google. Two different ad boxes there on this website, digitalcamerainfo. By the way, DigitalCameraInfo.com, you can pay me later! They didn’t know I was making this video, but I’m definitely advertising for them!

Anyway, if you look down the page here, there’s another advertisement, this is also “Ads by Google,” this is a display ad. In this equation, I’m the visitor and I’m coming to the website and I’m coming to find out more. Well, I went to Google, but didn’t click on the advertiser’s page; I went to a website over here. On that website, in the case of DigitalCameraInfo.com, there was an ad box up here, there was an ad box right here and there was another ad box right here. All that this website had to do in order to get Google to advertise or run those advertisements on their website, was to go to Google and say, “hey Google, I have a website, can you give me some code and I’ll put it on it.” So Google gives this person some code, that code goes in various places on the website and then once that code is on the website, Google is able to pull from its base of advertisers and put ads into those ad spaces on the website.

As the visitor, if I come to this page on the website and I click out to go to the advertiser, Google is going to make some money and so am I because I’m the owner of the website. This is a lot of arrows and it can get kind of confusing so if you want to watch the video again it will help to clear it up.

But on this side of things, it’s called Adsense. This is where you have a website about a specific topic, you go to Google, you throw some code on your page and when visitors come to your website and click on those advertisements, Google then pays you for having brought the visitor to that advertiser’s website. This advertiser pays Google some money and then Google shares that revenue with you. That’s called Adsense. That’s how Google makes money on the Adsense side of things and that’s how you make money on the Adsense side of things, by running some code on your website. Google figures out what your website is about and they display advertising on your website that you get paid for when people click from your website to go to an advertiser.

Hopefully that makes sense, if that doesn’t make sense, please comment below the video here and let me know how I can make it clearer. I’ve obviously, with all of these arrows, all over the place! This whole picture here, I probably didn’t make it really clear from a visual standpoint, but if you watch back through the video, you’ll see what happened with all those different arrows and what each one of them represents.

Hopefully that makes sense! That’s how Adsense works as a program. If you have a product or service to offer, then what you’ll want to do is look at Adwords which we’re going to cover, at least topically, in a different video.

Thank you very much for taking the time to visit ThreeMoneyMethods.com! Again, please comment below the video here if you have any questions at all about how this works. I’d be happy to answer them in another, upcoming Three Money Methods Traffic Tuesday’s video!

We’ll look forward to seeing you back here at ThreeMoneyMethods.com!