Leslie Petrequin www.leslie-petrequin.com/english-resume

How Google makes money

…and allow others to make some too

Google advertising program

First thing first:

What is Google?

is a search engine

INDEXES RANKS RESPOND… all web pages(when you do a google search you will search within the Google’s index of the web)

… them by relevance

- by using many parameters(how many times the word appears in the page, where does it appears, is there synonyms on the same page, quality website or not .. )

-by using PageRank(rates a page’s importance by looking at how many outside links point to that page)

… to users queries

each page’s overall score

When a user types the keyword

flower into Google search field

Results page

Useful and impartial search results

… obtained by using the

PageRank algorythm

Contextual ads

… paid by advertisers

How to decrypt the results?…for this query with the keyword flower

Why would you do business with Google ?

because it’s user friendly

because it’s fast

because of the quality of the resultsbecause of the continuous innovations and improvments

…and mostly because users love it !

…and if users love it and use it

that means you can reach them via Google

Million searches per day

on Googlein March 2009

And now:

Let’s talk money…

What is

Adwords ?

Advertise your business on GoogleNo matter what your budget, you can display your

ads on Google and our advertising network.

Pay only if people click your ads

advertisers

Why do they pay Google?

So that, their can reach the

people who are the most

interested in their product

And so that their ad ..

… appears at the top of the results

or on the right side of the page

The official

AdWords

presentation

How does it

work ?

IT’S A 3 PARTIES SYSTEM

the advertiser the userwants to see relevant ads

wants to present relevant ads to users so that they click on them

wants to make a good experience for both the advertisers and the users so that they come back and continue using the system

A user does a searchLet’s say for the keyword “flowers”

They eventually click on an adfor a boutique flowwr shop (for example)

The owner of the ad (the advertiser)

will pay Google everytime a

user clicks on their ad

based on how much they previsouly bidto appear on that spot

What does

this means

exactly ?

a bid ?

How does the

auction works ?

The pay-per-click principle:Advertisers only have to pay when they receive a click

Let’s take a simplified example …

4 advertisers competing for 3 spots

their max bidgiven to Google

price paidper click

… but it ’s a bit more complicated

because Google wants to guarantee high-end quality ads

a quality score

is calculatedbased on 3 components

Click-through rate (60%)each click on the ad is considered a vote of quality

Relevancy (30%)of the keyword to the ads as well as to the user’s search query Only useful ads are displayed to users

Landing page quality (10%)relevant, original content, be easily navigable with quick load times

4 advertisers max bid quality score ad rank position

highest bid eliminated

Final ad rank = max bid x quality score

Let’s go back to our example…

The advertisers cannot secure a good ranking simply by biding high, their content has to be relevant for the user

… how much do they need to actually pay?

So, what’s the

price to pay ?P1 . Q1 = b2 . Q2

P1 = b2 . Q2 / Q1

p for priceQ for Quality

b for bid

max bid quality price paid

bid for the right spots

choose relevant keywords and placements

have relevant and original content

keep your website updated

design you website carrefully: easy to navigate, …

To succeed with AdWords, you will need to …

What is

Adsense ?

Maximize revenue from your online contentGoogle AdSense is a free program that empowers

online publishers to earn revenue by displaying

relevant ads on a wide variety of online content

publishers

Why Google pays publishers ?

So that, the number of clicks on a

given ad increases and with it, the

Google’s revenue

and so that the advertiser’s ad

gets more viewers

… by being displayed on a webpage with related content

The official

Adsense

presentation

How does it

work ?

IT’S A 3 PARTIES ECOSYSTEM

the advertiser the publishersare paying Google to thrive traffic to their sites

wants to make a good experience for both the advertisers and the users so that they come back and continue using the system

are earning money by showing relevant ads to their visitors

A user visits a website Let’s say a blog about technology and innovation

They eventually click on an adthat is displayed on the blog

The owner of the ad (the advertiser) will

pay Google everytime a user clicks

on their ad

and Google will give a share the money with the

publisher

What does

this means

exactly ?

How are the

ads chosen?

advertisers

contextual targeting algorithm

Place the ads on sites with appropriate contents

AdSense is based on the PPC (per click)

and CPM (per impression) advertising

payment models.

.. and what

about the

prices ?

the publisher receives an undisclosed share of

the revenue from the ads.

How flexible is

Adsense?

AdSense™'s contextual selection and filtering criteria

the publisher's optionsThey get to filter ads

the advertiser's optionin the case of impressions-based advertising,

they can choose from a number of available

sites

Ads are placed on the website according to:

Did you know ?… there is several AdSense solutions

The 2 most known ?

Adsense for Content

Adsense for Search

Adsense for content

of the revenue that Google collects from

advertisers “AdSense for content” ads is given to

the publishers

-Maximize your website revenue

- Show your users ads they'll be

interested in

- Tap into a network of

thousands of search advertisers

-Start serving Google ads in

just minutes

AdSense allows publishers to generate revenue

from ads placed alongside web content

What’s the point?What is it ?

Adsense for search

revenue share is paid by Google to the

“AdSense for search partners” for the

search ads that appear through their

implementations

allows publishers to place a custom Google

search engine on their site and generate

revenue from ads shown next to search results

What is it ?

-- Create a search engine in

minutes.

-- Customize the appearance

of search results and ads.

-- Tune results and ads to your

site's content and audience.

-- Get more comprehensive site

search results with improved

indexing.

What’s the point?

have an attractive website, with

pertinent and original content to

keep visitors interested so they

feel the need to go further…

To succeed with AdSense, you will need to …

… and eventually find out more

by clicking on the ads

Bibliography …VIDEOSIntroduction to the Google Ad Auction, video from GoogleHow Search Ads Work, video from GoogleHow Search Works, video from GoogleGoogle: Behind the screen, by IJsbrand van VeelenKnow more about google, by itzvideo

PRESENTATIONSGoogle Facts, by Woohyun KimGoogle Brand Analysis, by Korhan BuyukdemirciEverything you always wanted to know about Google…But were afraid to ask, by FabernovelGoogle Adword Guide, by Targetseo.com

ARTICLESHow Google Adsense Works?, Google AdSense TutorialThe AdSense revenue share, by Google Adsense BlogHow Google Works, by Google AdWords and Adsense, on WikipediaGoogle Searches Per Day Reaches 293 Million in March 2009, on USA SEO ProsNielsen NetRatings Search Engine Ratings, by Danny Sullivan

Go to my full online profile:

www.leslie-petrequin.com/english-resume

Thank you for

your time !