Google Ads: Life of a dollar

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We all use Google and see Ads on the right-hand side. We also see Ads on other sites. Where do they come from? How does Google match Ads with the Search/Content? How does the bidding work? How does all this happen in a blink of an eye?. This is a broad overview of Google Ad system, that serves over 30 billion Ad impressions everyday, which is roughly 3.5 lakh impressions every second. All this generates over 45 billion dollars in revenue for Google every year, which translates to roughly Rs 750 crores every day or around Rs. 90,000 every second - all from Ads

Transcript of Google Ads: Life of a dollar

Page 1: Google Ads: Life of a dollar

Google Ads : Life of a dollar

Presented By: Rajat Jain

Page 2: Google Ads: Life of a dollar

Introduction to Ads

Overview:

• Google greatest search company but no revenue initially

• Launched AdWords in 2000 - by applying search principles in Ads

• Today accounts for over 90% of Google's revenue - ad revenue was $42.5 billion in 2012

Page 3: Google Ads: Life of a dollar

Different Types of Ads

Text Ads - Google's text advertisements are short, consisting of one headline of 25 characters and two additional text lines of 35 characters each

Display Ads

Banner Ads

Video Ads

Click to Call Ads, etc.

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Different Ad Delivery Mechanism

AdWords - on google.com and other partner search sites

• Text Ads based on search keywords

AdSense - on publisher websites

• Text Ads based on site content

• Display Ads based on site verticals, etc. Google shares revenue with site publisher

• For lot of sites revenue model is based on AdSense revenue

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Bidding & Matching Algorithm

Technical Terms

• Impressions, Clicks, CTR, CPC, CPM, etc.

Google Bidding Algorithm

• Old bidding vs new bidding

Bidding process with Examples

• see http://goo.gl/QFl0w4

Matching Algorithm

• Exact match vs. Phrase Match vs. Broad Match