How Google Ads Make Money

January 7, 2023

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You work tirelessly to create a product that meets your audience’s needs and helps them solve a problem. Your website is all set up, your social media is up and running, and you are ready to conquer the world.

You launch with excitement and…crickets…

You have to scroll all the way to the seventh page of search results to find your website. You know online marketing is a slow process and you are in for the long run. You’re creating quality content, optimising your pages, and engaging with the few readers you have hoping to move up the Google ladder.

We’re here to tell you about a shortcut and teach you how to boost your small business (and your revenue) with Google Ads.

Using Google Ads to Make Money

After reading this article, you will have a basic understanding of Google Ads. You’ll also get an idea on how to use the platform and some helpful tips for your campaign creation efforts.

  • The Keyword Is King

What you need to know about Google Ads is that the keyword is king and will dictate your profitability. Sure, an ad copy or landing page can enhance a campaign too but they all start with one thing: A google search where keywords determine cost-per-click costs as well quality leads which then translates into ROI for businesses who advertise on this platform.

Here’s an example: let’s say that you are a small business selling whole and fresh roasted Brazilian coffee beans. You set up a Google Ads campaign and came up with “coffee beans” as a search term that you thought people will use when looking for your products or services. But, soon after, you realized that the keyword is too broad and you are getting clicks from people who aren’t necessarily interested in buying coffee beans, but who want to know if it is safe to eat them or who want to learn about their health benefits. You are losing money instead of making a profit. If a prospect clicked on your ad, then you will have to pay regardless if they converted or not.

When you change your keyword and start targeting “buy fresh roasted Brazilian coffee beans” instead, not only do more people see the ad but they also take action.

Now that you’re all geared up and ready to go, there’s one more thing before we can start generating profits with Google Ads.
Google Keywords

  • The Bidding War

You know your audience and you found the keywords they use to search for what they want. Now it’s time to show Google how much money we’re willing to spend so that our ads appear in their results.

Google’s secret to success? You’ll have to compete with other advertisers for each keyword. Don’t worry, the amount of money you are willing to spend isn’t all there is that counts – Google also looks at your Quality Score and considers things like:

  • The relevance of your ad compared to your keywords;
  • The relevance of your landing page compared to your ad copy;
  • The click-through-rate of your ad;
  • Your past account performance (of course, this criterion doesn’t apply if this is your first campaign.)

The reality is that the search engine rankings are just a drop in the ocean when it comes to how people find your business. The second and third positions still get 18% respectively 11%, so don’t be discouraged if you’re not at number one.

Can we try and guess what you’re thinking right now: is there a simpler and more direct way to make money with Google Ads?

Yes: there is.

Let us introduce you to Google AdSense.

How to Generate AdSense Income

You can’t expect to create your AdSense account, add the code and start cashing in on profits. Like any other business venture though you will need a little time investment before seeing substantial returns.

Here’s what you need to keep in mind:

  • Pay Attention to the Ad Placement

So, you’ve created your account, got accepted as an AdSense publisher, and set up your payment information. Your site is now ready to display Adsense ads and generate clicks. But, where will Google place the ads? Will they interrupt the flow of your content?

You can opt for automatic placement if you don’t have the time to manage each AdSense ad. But, if want more control over where your content is published then go ahead and manually place them too! You’ll receive a JavaScript that needs to be added on any website where ads should appear as well – so make sure they’re placed strategically.

You can place as many ads on your website as you wish as long as they don’t affect the user experience. But, as a rule of thumb, the best ad placements are the following:

  1. You should place one ad unit above the fold as it has one of the highest conversion rates;
  2. Another great ad placement is at the end of the article or web page as people usually look for what action they should take next:
  3. Place one ad unit in the sidebar

How Does It Actually Work?

Google considers a wide range of factors when deciding how much money your AdSense ads will generate. The type and quality of traffic, as well as the number of advertisers in an ad can have a significant effect on earnings for those who use these services with Google’s program.

Here’s an example: let’s say that your website generates a lot of traffic, such as 200.000 visitors per month. That means that you have 200.000 ad impressions. Let’s also imagine that your click-through rate is 1%, which is rather standard. Then 1% of 200.000 is 2.000.

If the cost per click (CPC) of an AdSense ad is 0.01 USD, then you make 20 USD each time someone clicks on your ad. If the CPC is 1 USD, then you make 2000 USD every time someone clicks on your ad.

Of course, the chances of finding advertisers that will pay 1 USD per click are quite small, but you probably got an idea of how the system works.

  • Maximize Your AdSense Revenue

The content of your website is just as important to AdSense click-through rate, if not more so than traffic. If users bounce rapidly on pages because they’re poor quality or irrelevant then you will see less revenue from Google ads and that’s something we can help with.

Focus on creating fresh and quality content. Don’t be afraid to give your own take on a particular subject. If you have a different theory about how the last Avengers movie will end, don’t hesitate to share it with your readers.AdSense

Back to You

Running ads through Google AdWords or Google Adsense can be time consuming. Sure, one of them requires more hands-on work but the differences aren’t that big if you’re committed to doing everything by book.

And, oh boy, it’s a lot of work!

If you want to take some of the pressure off your shoulders, Australian Internet Advertising is here for that. Our experts will teach and guide you so that together we can conquer Google Ads and boost revenue.

Billy P.

About The Author

William Polson founded Australian Internet Advertising in 2013 and has over 12 years of experience immersed in Digital Marketing.

With an in-depth level of digital marketing knowledge, William has been sort after by and worked for, many large national brands including Subaru, Blooms The Chemist, and Nova 96.9.

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