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How Google Spends Your Money
Submitted By: T Blake <--More?
Category: Pay-Per-Click | Date Posted: 2006-07-31
Page Views: 124 | Rating: (?) Not Yet Rated | Wordcount: 883


Do you use Google Adwords to boost your Google Adsense and Yahoo Publisher earnings? If not we recommend it, starting with a very small budget like a dollar or perhaps a British Pound per day. But before you jump into paid advertising to drive traffic to your website we will look at how Google spends your money.


Keep in mind, if you will, that it is a violation of Google's terms of service (the Adsense TOS) to divulge the details of one's account. For this article we polled different users in a manner that would not violate anything, while getting factual data on which to base this report. Many people ask the question "Will my Adsense or Yahoo Publisher revenue go up if I use Google Adwords?"


Assuming you have something people want to read, download, or learn about, the answer is obviously yes. The more people who visit your website, the more people do things while they are there.

How much should you spend? And better yet, what does Google do with your money? They spend it!


What we wanted to know for this report was how they spend your money. To see your results you must follow your Adwords account each day. Assuming you are not trying t.compete with the major players in your field and you don't spend more than a dollar a day, we shall track your spending in relation to what you make in return. Let us further assume that you have Google or Yahoo ads on your website. What you are trying to do is spend less than you make from visitors clicking on your ads. We are not talking about websites without real content - we are talking about real websites with real substance, otherwise the data in this report is of no value.


Assume that without a Google Adwords account you are making $9 (USD) a day.

Statistics show that spending $1 a day will increase your revenue to about $14.50 a day for an average website.

Statistics also show that spending $2 a day will perhaps increase your revenue to around $18 a day, again for an average website.


Why isn't this linear? In other words what happened and why didn't it increase evenly? There are many factors to be considered. People vary their Internet use by day of the week, hour of the day, the weather, national holidays, and many other factors. Quality of advertising varies, and when a major advertiser pays for the top spot all day, every day, there is not much you can do. Either show the ads or block the advertiser.


But now we get to the real factor that small Adsense users need to look out for. How Google spends your money. Google and Yahoo both run their daily programs on the Pacific Time zone. Their day starts and ends at midnight. What we found out by polling Adwords advertisers is simple - their money ran out before the evening even started.


Where is your target market? Who visits your website, and when do they visit? Do you get business people during the day and family members at night? If your website visitor.come from around the globe are those outside of your geographic area actually the ones making money for you? If your money runs out when the day is only two-thirds over the answer might be "yes".


Case study - If you spend $2 and it runs out 15 to 17 hours into the day, what happens if you decide to spend $5 a day? You guessed it - revenue goes to around $30 for our hypothetical advertiser and website owner, but the money still runs out 15 to 17 hours into the day. It benefits Google or Yahoo, but it does not benefit you to the maximum extent possible. And spending $5 instead of $2 did not cause revenue to go up evenly. In the United States people are leaving work, wrapping up their day, children are home from school. Elsewhere, people are asleep. When your money runs out it is mid-afternoon in Australia.


In summary we say it is entirely possible for small advertisers to increase website revenue whil.competing for Google Adsense and Yahoo Publisher revenue. Some website owners use Google to drive traffic to Yahoo Ads. Like anything else whoever performs best gets the job. The trick is to watch your Adwords account, reset it when Google resets, and monitor it throughout the day to know when the money runs out. Add an additional $1 at that time, and see the net effect. There may be little effect on a Friday night and a great effect on a Thursday night. But the greatest effect is when your money runs out, which is why we say "Learn How Google Spends Your Money."

About the author: Mr. Blake has a degree in Business Management with a specialty in Management of Technology. His website powerblogs.net helps bloggers and general website owner.compete with major corporations.
This article is free for republishing




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