It’s easy to confuse two things that sound alike. Take Google Ads and Google AdSense, for example.
Both are obviously from the world’s biggest search engine and concern ads, so you can interchange them, right?
Nope, because, they are far more different than similar.
Digital Authority Partners talks about their differences extensively. This article will compare both based on their business model, users, and costs (or revenues). You will also learn how to use both to grow your business online.
How Do They Work?
First, what is the business model of Google Ads and Google Adsense? How does each work?
Google Ads is a paid advertising platform that displays business ads on Google.com and its vast network, as well as partner sites. It operates on a pay-per-click (PPC) model, so advertisers only pay when someone clicks on these ads.
The tool also features customizable parameters. For instance, advertisers can target specific keywords, locations, and demographics. They can also set their budget, use ad extensions, choose the keywords to bid, and manage ad content.
Overall, Google Ads is effective in reaching potential customers and growing a business. It helps businesses control their spending and improve their results.
What Is Google AdSense?
Google AdSense is very different. The program allows website owners to place targeted ads on their sites and Google products, such as YouTube.
The search engine administers and maintains the platform, while the ads come from Google Ads. In other words, your website becomes a partner site.
Many people participate in the Google AdSense program since they can monetize their site without selling advertising space directly to businesses. They can also control the ads that can appear on their website. They can even block content or keywords that do not relate to their audience.
Who Uses Google Ads and Google AdSense?
You call Google Ads users advertisers, while you refer to those who participate in the Google AdSense program publishers.
Advertisers include small businesses, large enterprises, and agencies that want to reach potential customers on Google. They can be local companies or global brands. The platform is flexible enough to work for all kinds of organizations.
Publishers are website or Google account owners who want to monetize their traffic. These people do not necessarily sell products or services online. They can also be bloggers, social media influencers, or even infopreneurs.
Some people are both advertisers and publishers. For example, a business owner can advertise on Google while placing ads on their company website. In other words, they can earn money while promoting their products or services.
How Much Does the Service Cost?
Google Ads comes with costs. The amount depends on your keyword bid, ad relevance, and the landing page where the ads will also appear matters.
A Verizon study shares more specific information about Google Ads spending. According to it, it could cost you below $1 per click if you advertise on other people’s websites. It’s about the exact amount if you display ads in banners, videos, and apps.
Your spending could double if you plan to show your ads on the search results. This is understandable since you may need to bid on more competitive keywords.
Your CPC cost could hit at least $50 if you target highly competitive keywords in industries with high customer lifetime values (CLVs). However, you can lower the amount and improve your placement by creating compelling, well-targeted ads.
In general, a small business spends around $10,000 monthly for Google paid search. Big brands usually shell out a whopping $50 million annually.
How Much Do You Earn with AdSense?
Running an AdSense program also has a cost. You may have to pay for a domain and a web host. You may even spend on marketing to drive more people to click on the ads.
But by design, Google pays you to run the ads, although how much you get depends on many factors, such as web traffic and ad position. People are more likely to click those that are above the fold since they don’t like scrolling down.
The location of your website visitors also matters. For example, an ad may pay a partner $0.30 in the United States and only $0.10 in other countries.
Another factor that can affect your earnings is ad type. Depending on the website, more visual ads can offer higher rates.
Lastly, your earnings percentage can vary. Contrary to what you might think, you don’t pocket the entire revenue.
Instead, you split it with Google, which uses the money to improve the program. Publishers under Google AdSense for content will receive 68%. Those who participate in AdSense for search will get 51%.
Can You Use Both to Grow Your Business Online?
The answer is yes. Many people use both Google Ads and AdSense to boost their online presence.
Google Ads helps you attract more website visitors. By increasing your traffic, you also increase the number of potential customers.
AdSense lets you monetize your website even if you are not selling anything. If you’re a content creator, you can run it on your website or video channel.
You can also use AdSense to supplement your Google Ads income. For example, if CPC is low for your keywords, you can make up for it by displaying more ads on your site.
The key is to know your business goal at the moment. Use AdSense to generate cash flow and Google Ads to promote your company aggressively online.
Google Ads and AdSense are two different programs with various purposes. Google Ads is a paid service to help you grow your business. AdSense is a way to monetize your website.
You can use both to achieve your online goals. But you need to define your marketing goals to know which to focus on.
Sometimes it can be tough to manage a PPC campaign on your own or grow your AdSense business if you are unfamiliar with the process. Remember, you can always seek help from a reliable digital marketing agency to make things easier for you.