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Beginner’s Guide To AdSense, Part 2

The Three Components To AdSense Success
Before starting out with a Google AdSense campaign, there are some things which you must learn.  Primary of these are the three prime components of a successful venture in this field.  These three components make or break an AdSense campaign, and if you’re not careful, your websites may not be able to pull the numbers you have come to expect.

These three components come from the following formula for success:

Impressions x CTR x CPC = AdSense earnings

Don’t let the formula above intimidate you.  It’s quite simple, really.  The unfamiliarity of the terms will soon be remedied after this article.

The three components, as you can see from the formula above, determine how much earnings you’re going to gain from the program.  Ultimately, you want your campaign to be self-sufficient and automated.  You want passive income from a source that you can leave behind for a few hours, if not a few days.  For this to happen, you must ensure that the earnings will be consistent, and this can be guaranteed if the components are likewise consistent in their performance.

On Impressions
Impressions refer to the number of page views your website is pulling.  In layman’s terms, the concept of impressions is synonymous with traffic.  The higher the volume of traffic you’re generating for your website, the higher chances you’ll have of gaining a lot of clicks.

There are many traffic generating strategies you can pursue.  They are very easy to learn and implement.  Here are the most popular of these techniques:

* Article marketing, or the distribution of original, high quality articles to article directories, with each article having a link to your website.
* Search engine optimization, both on page and off page, to ensure that your URL will appear prominently in relevant searches.  80% of the traffic you’ll be able to generate for your website will come from the search engines.
* Building your link popularity.  Link popularity refers to the number of links to your website that appear in the World Wide Web.

There are more, of course, which we will be discussing in detail come the next lessons.

On CTR
CTR is an abbreviation of Click Through Rate.  This refers to the percentage of your visitors who actually click on the ads displayed on your web pages.  If you’re pulling 100 visitors per day, and 50 of them click on your ads, then you’d have a 50% CTR.

It goes without saying that the higher your CTR is, the more earnings you can gain from the AdSense program.  Attaining a high CTR should be one of your primary goals in this field.

CTR is often determined by the placement of your ads and your choice of ad types.  Some ad types are simply more clickable than others.  And there are specific places on your web page where they will become more visible and clickable.

On CPC
Of the three components, CPC is the one which is least within your control.  CPC refers to the Cost Per Click, the amount that each click will fetch.  This is more or less pegged.  Some clicks cost a mere cent.  Others cost a couple of dollars.

Indeed, choosing the topics that fetch ads with high CPC will be the apparent solution.  But this is only possible if you’re building a website from scratch, and you’re trying to find a subject that will gain as much earnings.  It is not applicable for existing websites catering to an existing topic that has existing sponsors paying a corresponding amount per click.

Nonetheless, if you can determine the CPC of certain ads, and if you’re just starting to focus on AdSense as a viable income stream, it would work to your advantage if you’d research the going rates for existing ads.
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