Google AdWords and AdSense - A Dynamic Small Business Market

John Jantsch

Unless you have been living under a rock for the last year or so, you probably know that Google has become the king of the search engine hill. There are many reasons for this but number one in my opinion is that above all else they put value on content. Today I want to introduce you to two very powerful small business advertising options created by Google.

These two ingenious programs have all but revolutionized the way advertising is done on the web. Warning: If you are thinking..."web advertising isn't for me, I just need a few more clients around the block"...you better read this or be prepared to have your competitors eat your lunch.

Goolge AdSense - Again content is king at Google. This program allows web site "publishers" to add some code from Google and receive "content relevant" ads on their site from other site owners. Here is an example - those ads in the box on the right of the page are delivered by Google and are matched to the content on the page. When someone surfs to the page and decides to check out one of those ads, the web site owner earns a portion of the advertising revenue that Google collects.

The key here is that if you go to a site about quilting, you will see ads about quilting and not about dog grooming. I know this sounds so obvious but Google was the first to really figure this out.

This program has worked so well that some website owners are actually building content specific sites and paying for them solely through AdSense revenue. Small business owners should consider adding this feature to pages on their site for several reasons.

I've already mentioned the fact that there is money to be made, but what many site owners are finding is that because Google is so respected and because the ads are highly targeted...they are no longer looked at by surfers as ads, they are looked at as content.

Some will even go as far as to say that by putting the Google ads on your site you actually better your chances of higher rankings with Google. Google flatly denies this claim and I don't think it is true but I do know that Google AdSense ads should be on every small business owner's site. (Google AdSense)

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Another Warning: This is somewhat complex stuff. This article is only meant to introduce you to the power of these programs. Check out Google Cash by Chris Carpenter for a deeper understanding of ways to make this work for you.

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Google AdWords - I've already talked about those ads you see on websites, well those ads need to come from somewhere don't they. AdWords is Google's program for advertisers.

Any site that wishes to participate bids for "keywords" that are relevant to their product, service, or site and then creates ads to attract hits. These ads show up on private websites, like this example, and on the right side of Google search results like this search for "Free sales letters and tools" As you can see from this Google search you received the content related sites that you searched for but you also get some related ads that are sponsored.

Now here is where Google is genius. Instead of simply subjecting surfers to any ads that anyone is willing to pay for, they actually police the ads that are running. On some pay per click programs, whoever is willing to pay to most wins. Google uses a performance model. In other words an ad that is the most relevant and therefore receives the most clicks will move ahead of an ad that may pay more but isn't as effective. This simple philosophy is why Google has quickly dominated the PPC world.

Okay...and now the really big innovation

Regional targeting. Google recently introduced a system that allows advertisers to target certain metropolitan markets only. In other words, a remodeling contractor who only wants to do kitchen remodels in say, Denver, can bid on the keyword phrase "kitchen remodel" and only have his ads show up for people who live in and around Denver.

The implication this has for local small business owners is staggering. In the example above, our Remodeler can now tap into highly targeted web traffic for pennies per lead. In my opinion, small business owner who learn the ins and outs of this medium will dominate their markets. (Google AdWords)

Look for more on this topic in the future.

Copyright 2004 John Jantsch

John Jantsch is a marketing consultant based in Kansas City, Mo. He writes frequently on real world small business marketing tactics and is the creator of “Duct Tape Marketing” a turn-key small business marketing system. Check out his blog at http://www.DuctTapeMarketing.com/weblog.php