In this video I'll be talking about Google AdSense, with a special look at CPC and how it works.
If you don't want to watch the whole video you can read the synopsis I wrote below:
Google AdSense is how content publishers online make money, so it’s important to understand how it works if you are looking to make a website or some type of passive income from ads.
If you’ve never used Google AdSense before, let me give you a brief introduction on how it works:
Advertisers will sign up with Google AdWords, a separate but intertwined program where they can create ads and promote a product or service. Once the ads have been approved, content creators, AKA owners of niche websites, will place code provided by Google AdSense on their websites, connecting website visitors to the advertisers, inhales that the visitors to the niche website will click on the ad.
The ads can range from anything from fishing rods to legal services, and everything in between. You rarely have control over what exactly the ad will say on your site. You can however, opt out of certain ad categories, such a gambling and other sensitive topics, if you choose to do so.
When a visitor clicks on your ad, you will receive a potion of the “cost per click” abbreviated as CPC. The CPC is what Google charges the advertiser every time someone clicks on their ad. The CPC can range anywhere from .01 per click to over $100 per click for a service like a lawyer or doctor.
The point of your niche website is that the ads that will be displayed alongside content, giving visitors the chance to click on the ads if they are relevant. So, if you choose a niche like cat toys, and you’ve done your research and found out that the CPC for the keyword “cat toys” is roughly $2.00 per click, you can expect to receive a portion of that $2 everytime someone clicks on a cat toy related ad on your website. On your website, you will be focusing around a specific niche, so usually the ads displayed will be related to the niche you have chosen, but not always.
Google wants visitors to click on the ads that are displayed on a website, it’s how they get paid, and it’s how you get paid. Lets use an example of when the niche you choose doesn’t display an ad related to the niche.
Let’s say your niche is about cat toys. In a circumstance where a person has been browsing websites related to dog toys all day, Google might decide to show ads related to dog toys instead of cat toys on your website. This is because the user’s cookies tell Google that they have been looking for dog toys all day, and that they have a better chance of clicking on an ad related to dog toys, instead of cat toys.
So your original CPC for cat toys was 2.00, but Google showed a dog Toys ad instead, with just a CPC of .50! That means instead of the full $2.00 you were going to get, you only get a portion of the .50 instead. It’s just the way Google AdSense works.
Keep in mind, this is just an example. It’s hard to tell when this happens because Google doesn’t share information with your regarding specifically what Ad was clicked. Both of the niche websites I own are very close or even spot on to the CPC I originally imagined they would be.
Once a person clicks on your ad, you have more money show up in your AdSense dashboard. Google doesn’t allow you to share pictures of your entire AdSense dashboard because it violates the AdSense terms of service, but once you create an AdSense account, it will be the first page you see everytime you sign into your account.
If you haven’t created an AdSense account yet, go ahead and do so. you can create an account at www.google.com/adsense - the process is pretty straightforward, and you need to be approved with AdSense in order to start placing ads on your website, and start making money.
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