AdWords is Google’s branded text-based pay-per-click (PPC) advertising service.

Google’s advertisements are short, consisting of one title line and two content text lines. Advertisers specify the words that should trigger their ads and the maximum amount they are willing to pay per click. When a user searches Google’s search engine on www.google.com, ads for relevant words are shown as “sponsored link” on the right side of the screen, and sometimes above the main search results. The ordering of the paid listings depends on other advertisers’ bids (thus the system is classified as P4P) and the historical click-through rates of all ads shown for a given search.

All AdWords ads are eligible to be shown on www.google.com. Advertisers also have the option of enabling their ads to show on Google’s partner networks. The “search network” includes AOL search, Ask.com, and Netscape. Like www.google.com, these search engines show AdWords ads in response to user searches.

The “content network” shows AdWords ads on sites that are not search engines. Google automatically determines the subject of the pages and displays ads for which the advertiser has specified an interest in that subject. The ads show in boxes resembling banner ads, with the designation “Ads By Gooooooooooogle.” These content network sites are those that use AdSense, the other side of the Google advertising model.

AdWords is used by publishers who wish to bring traffic to their websites. The biggest competitors are Yahoo! Search Marketing (formerly Overture) and MSN’s soon-to-be-launched adCenter.

Most of Google’s revenue comes from AdWords.

Legal context

The service has generated lawsuits in the area of trademark law and click fraud. [1]

Interacting with Adwords

The ads are displayed on the right hand side of the natural search results. The ads are pure text, and thus difficult to block. However, on external sites, they are hosted within an IFRAME (an HTML element), making them easy to remove with advertisement blockers.

Technology

The AdWords system was initially implemented on top of the MySQL database engine. After the system had been launched, management decided to use a commercial database (Oracle) instead. As is typical of applications simultaneously written and tuned for one database, and ported to another, the system became much slower, so eventually it was returned to MySQL ([2])

Links

• Official Website
• Program Details and FAQ
• Adwords Lawsuits
• Google AdWords API
• Google Advertising Professionals aka GAP’s
• WhoisaGAP Helps you find out who is a Google Advertising Professional

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

Click fraud can be as simple as one person starting a small web site, becoming a publisher of ads, and clicking on those ads to generate revenue. Oftentimes, the number of clicks, and their value, is so small, that the fraud goes undetected. Oftentimes publishers will claim small amounts of such clicking is an accident, which is often the case.

Much larger scale fraud also occurs. Those engaged in large scale fraud will often run scripts, which simulate a human clicking on ads in web pages. However, huge numbers of clicks appearing to come from just one, or a small number, of computers, or single geographic area, look highly suspicious to the advertising network and advertisers. Clicks coming from a computer known to be that of a publisher, also look suspicious to those watching for click fraud. A person attempting large scale fraud, alone in their home, stands a good chance of being caught.

Organized crime can handle this by having many computers, with their own internet connection, in different geographic locations. Often scripts fail to mimic true human behavior, so organized crime networks use Trojan code to turn the average person’s machines into zombie computers and using sporadic redirects or DNS-cache-poisoning to turn the oblivious user’s actions into actions generating revenue for the scammer.

Impression fraud is an insidious variant of click fraud where the advertiser is penalized for having an unacceptably low click-through rate for a given keyword. This involves making numerous searches for a keyword but without clicking of the ad. Such keywords are disabled automatically, enabling a competitor’s lower-bid ad for the same keyword to continue while several high bidders (on the first page of the search results) have been eliminated.

It is very difficult for advertisers, advertising networks, and authorities to pursue cases against networks of people spread around multiple countries.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

Yahoo! results and its forecast for current-quarter sales pleased the investors; Yahoo’s shares boost almost 6% in extended trading after the market close. “It was a clean ‘beat’ quarter, you see signs of stabilization, which is very positive.” says Sandeep Aggarwal, an analyst at financial services firm Collins Stewart.

As Business Week says, Yahoo, in the midst of a sweeping reorganization and rebranding campaign under CEO Carol Bartz since she joined in January, emphasized that the online advertising market is stabilizing.

In the third quarter, Yahoo earned $186.1 million in net profit, or 13¢ a share. That’s up from 4¢ a year ago. Gross revenue of $1.58 billion was down 12% from a year ago. Net revenue after commissions to advertising partners, a more closely watched metric, was $1.13 billion.

About 5¢ of the profit came from the sale of Yahoo’s stake in China’s Alibaba, but remaining results were still ahead of forecasts. The company was expected to earn 7¢ a share on gross revenues of $1.52 billion, or $1.12 billion after payments to advertising partners.

The problem remains the search engine market, Yahoo! continuing to loose ground to Google. Yahoo said it expects gross revenues of $1.6 billion to $1.7 billion in the fourth quarter. Operating income before depreciation, amortization, and stock-option costs is expected to be between $400 million and $450 million. Both of those are somewhat higher than Wall Street forecasts.

Amazon at the Affiliate Meet Market

Early days

In the early days of affiliate marketing, there was very little control over what affiliates were doing, which was abused by a large number of affiliates. Affiliates used false advertisements, trademark bidding on search engines, forced clicks to get tracking cookies set on users’ computers, and Adware. Many affiliate programs were poorly managed.

This changed dramatically over the last few years for multiple reasons. Revenue generated online grew quickly. The e-commerce website, viewed as a marketing toy in the early days of the web, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. Many companies hired outside affiliate management companies to manage the affiliate program.

When Google, the most popular search engine on the Internet, introduced AdWords (pay-per-click advertising pioneered by Goto.com, then Overture.com and now Yahoo! Search Marketing) many Merchants became aware of the issue of trademark bidding by affiliates. The terms of service were quickly modified by most merchants and structures were put in place to monitor affiliate activities.

Adware

Adware is still an issue today, but affiliate marketers have taken steps to fight it. Merchants usually had no clue what adware was, what it does and how it was damaging their brand. Affiliate marketers became aware of the issue much quicker, especially because they noticed that adware often overwrites their tracking cookie and results in a decline of commissions. Affiliates who do not use adware became enraged by adware, which they felt was stealing hard earned commission from them. Adware usually has no valuable purpose or provides any useful content to the often unaware user that has the adware running on his computer. Affiliates discussed the issues in various affiliate forums such as ABestWeb and started to get organized. It became obvious that the best way to cut off adware was by discouraging merchants from advertising via adware. Merchants that did not care or even supported adware were made public by affiliates, which damaged the merchants’ reputations and also hurt the merchants’ general affiliate marketing efforts. Many affiliates simply “canned” the merchant or switched to a competitor’s affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban adware publishers from their network.

The new Web

The rise of blogging, interactive online communities and other new technologies, web sites and services based on the concepts that are now called Web 2.0 have impacted the affiliate marketing world as well. The new media allowed merchants to get closer to their affiliates and improved communication between each other. New portals like Return on Affiliates allow affiliates, merchants, and networks to interconnect easily, on a professional and a personal level.

New developments have made it harder for unscrupulous affiliates to make money. Emerging black sheep are detected and made known to the affiliate marketing community with much greater speed and efficiency.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

Video: Network Marketing and the Economy! Can Distributors Survive?

Billboards and street advertising in Shinjuku, Tokyo, Japan, (2005)

Generally speaking, advertising is the promotion of goods, services, companies and ideas, usually by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling and sales promotion.

Online advertising is advertising on the Internet. This particular form of advertising is a source of revenue for an increasing number of websites and companies.

There are two sides to online advertising, a legitimate one and an illegitimate one. The legitimate side of online advertising includes search engine advertising, advertising networks and opt-in e-mail advertising. The illegitimate side is dominated by spamming.

Though the range of advertising options has expanded since in the commercialization of the Internet, the use of rich media and static images is extremely popular. The ever-increasing audience of online users will likely continue to be a major advertising market.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.