AdSense, of Google AdSense, is an advertising application that works mainly to help website owners and blog owners to display ads on their site. It works by displaying ads relevant to the content of your site and, based on the interaction the ad gets on your website from users, you (i.e., the website or blog owner) is paid.
A Quick Introduction to Google AdSense
Google AdSense is mainly used by website owners and blog owners to earn money via their websites. That is, the website owner or blog owner signs up on AdSense and then uses an HTML code they receive to pick where on their website ads can be displayed. Then, Google robots post ads in those areas of the website based on what kind of content the website mainly publishes.
From the advertiser’s side, they get to advertise on the websites that have allotted space for Google AdSense ads. It’s how advertisers advertise on external websites at all in the first place. In order to advertise on AdSense, the advertisers too have to sign up for the advertisers’ program on Google AdSense. Then, once you’ve entered your billing and payment details – and also added money to your advertiser’s account – you’re all set to create your ad. However, your ad budget, the keywords you use, and your bids will determine how often and how effectively AdSense will display your ads.
The Major Factors Influencing AdSense Costs
Google AdSense mainly runs ads on a CPC (Cost Per Clicks) basis. And the costs as such are responsive to a number of influencing factors:
Your AdSense Ad Objective:
You can choose whether you want your ad to gain more clicks (CPC), impressions (CPM), or conversions (CPA) for your business. The CPC option is useful when you want to get more clicks on your website via your ads. However, if you simply want more familiarity to be generated among audiences for your brand, the CPM option would be better for your AdSense ad objective. (You are charged here for every 1,000 impressions on your ad with CPM.) On the other hand, if your goal is to generate sign-ups for your newsletters or website, or app installs for your program or mobile app, or product and service purchases, or any other kind of actual conversions from your ad, then the CPA (Cost per Action) objective is preferable for your AdSense ad campaign. For each of these objectives, you are required to only pay for what you gain.
Your AdSense Ad Run-Time:
How long your ad runs on AdSense will of course influence your overall costs. Especially since the AdSense bidding rates are variable. Depending on the quality of your ad, as well as other influencing factors, however, a longer duration of your AdSense ad campaign could get you more returns for your investments, thereby reducing your CPC, CPM, or CPA. (However, vice versa is equally possible as well.)
Your Average Daily AdSense Budget:
What you specify as your average daily AdSense budget will help you control your costs. This budget is the daily “average” of how much you’re allowed to spend for clicks, impressions, or actions on your AdSense ads. This means that, depending on the average bidding range on AdSense at the time, your CPC, CPM, or CPA will be closer to your daily budget or much lower. Generally, AdSense also accounts for a 20% “over-delivery” of clicks, impressions, and/or actions on your ad – in order to compensate for the days when your budget is too low for your ad to gain enough traction. Hence, the final amount you pay will probably be slightly higher than the daily average budget you have specified for your ad campaign.
The Average Advertiser Bidding Range on Google AdSense:
The bidding range of your ad varies from day to day, and hence, your CPA, CPC, or CPM for your ads can be lower or higher from one point of time to the next. Note that the bidding range for your AdSense ads can vary based on the display location of your ads, the frequency of your ads, and the quality of your ads. (Generally, automatic bidding is recommended for AdSense ads.)
The Quality of the AdSense Ad:
If an ad is of higher quality, it can actually rank higher than other poorer quality ads even if the bid amount allotted to those ads is lower. This, in turn, gets higher returns on the ad investments too, thereby lowering the CPC, CPM, or CPA.
In fact, Google uses a Quality Score to measure which ads and their keywords, quality, etc., are most useful and relevant to the audience they target.
The US Dollar to Indian Rupee Conversion Rate (An additional AdSense ad campaign price influencer for Indians):
AdSense ad costs will generally depend on the US Dollar ($) to Indian Rupee (INR) conversion rate at the time.
AdSense Rates and Pricing Patterns in India
AdSense ads have no minimum daily budget. Hence, what you allot as your average daily budget is entirely up to you. Plus, this budget can be modified at any time. In consequence, it’s the average bidding range at the time that decides the effective CPC, CPM, or CPA of your ads.
On average, however, the average AdSense rates in India range from Rs.100 to Rs.150 per click, per 1000 impressions, or per action. And again, this will depend on the bidding range at the time, as well as the daily budget specified, and whether or not the objective for the ad campaign is clicks, conversions or actions, or impressions on the ad.
As AdSense ads don’t have a minimum daily budget, the ads can cost as low as the advertiser pleases, or as high. However, the bidding range at the time defines how effective such ads will be as well in garnering the required clicks, impressions, and actions. In recent years, however, this bidding range has only increased with more competitors and advertisers entering the AdSense space for advertising.