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The Sense Behind Adsense

Aug 17, 2007
As a novice to Pay Per Click (PPC) earning programs like Adsense, one tends to think that the contextual advertising will adversely compete with efforts to sell visitors on a webpage. And since contextual advertising are designed to attract clicks, one might fear that customers might sip through the displayed adverts. As a result you earn a few dollars by commission from a visitor and lose possible hundreds and even thousands of dollars in making a sale of your primary offer.

This mindset was wide spread in the early days of Adsense. However, experience has proven that Adsense when properly implemented more often than not actually compliments your website's income. It results to an increase in the total earnings of the website or webpage. Most websites do not show a drop in Convertion Rate (CR) of the primary offer with the deployment of Adsense. Just as reminder, C.R is the percentage of visitors that end up as customers.

The sense behind Adsense and other contextual adverts lies in the general visitor behavior on a webpage. As opposed to popular belief, 7 out of 10 visitors to a website are looking to buy. Often the visitor has a general idea of what they want to get. They pick out the specifics as they gather information across different sites and eventually buy from the most convincing one. A website will stabilize at a particular CR based on its persuasion ability. Obviously some sales pitch sell better than others.

Based on the previously stated premise, that 7 out of 10 are looking to buy, theoretically a website can achieve a maximum of 70% C.R. In reality sales pages are far from optimized and the average C.R online is 1.8%. (Note sustainable convertion rates of 10% to 25% have been documented.) The other 75% - 98% though potential buyers, they are un-convinced and do not buy.

Likewise, based on the said premise, 30% of visitors to website will never buy, they were just looking. Adsense targets the un-convinced visitors and these others who would never buy. And these stack up as a high as 98% of visitors to the average website. In essence Adsense and other contextual adverts monetize or make money from visitor you webpage or website could not make money from. Consequently, you make your usual sales as well as advertising commissions from a huge percentage of visitors you would otherwise just lose.
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