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How does Adsense make money?

  1. PoeticPhilosophy profile image80
    PoeticPhilosophyposted 4 years ago

    I know we make money off of the clicks or if your with the hub earnings program by traffic. But how do the actual advertising companys make money.. Do they really make that much money off of people buying products to pay people in massive amount's I'm curious at how it works.

    1. Marisa Wright profile image98
      Marisa Wrightposted 4 years agoin reply to this

      They don't pay people in massive amounts.

      1. PoeticPhilosophy profile image80
        PoeticPhilosophyposted 4 years agoin reply to this

        I meant like all together, all the people who have adsense in the world, top blogger's, youtuber's. Those are massive amounts..

        1. Marisa Wright profile image98
          Marisa Wrightposted 4 years agoin reply to this

          Yes that's true, but think how many advertisers there are, too.  Most Hubbers are earning between $1 and $5 per THOUSAND visitors, so the advertisers are paying only a few cents per click.

          1. PoeticPhilosophy profile image80
            PoeticPhilosophyposted 4 years agoin reply to this

            But all together added up, everyone this must come up to a lot and I can't figure it out so I was hoping someone knew. I mean how do they afford to pay youtuber's who get millions of views DAILY. How do they pay all this money wrapped up together haha that's why I'm wondering how their system works and how they make a profit.

            1. Marisa Wright profile image98
              Marisa Wrightposted 4 years agoin reply to this

              That's what I'm saying.  There are millions of bloggers who get millions of views - but there are also millions of advertisers.  And remember, they only pay if someone clicks, they don't pay for every view.

              1. PoeticPhilosophy profile image80
                PoeticPhilosophyposted 4 years agoin reply to this

                Oh, ok haha. Thanks for your insights, I like how you always help people in the forums big_smile

  2. formosangirl profile image81
    formosangirlposted 4 years ago

    With any advertisement, a company is trying to build name and product recognition. And so they buy ads from Google. Occasionally I receive coupon worth $100 to advertise. So, I heard that there was period when the clicks were low because the ads were cheap, and therefore, the clicks were less lucrative. I have even had a click that didn't pay.

  3. 2uesday profile image80
    2uesdayposted 4 years ago

    I cannot claim to have great knowledge on this topic but for what it is worth here are my thoughts on it.

    It is probably simpler to understand if you think of it in terms of how newspapers and TV stations make money by selling advertising space/slots. The more readers the page got or viewers the TV show had the more money people would pay to get their product into that spot. That was because there was competition for the most lucrative advertising locations, the most viewed and in the case of newspapers the page that was on display for the longest i.e. front page, prime location, cost more for an advertising slot.

    As you will know, on here most of the ads. and ad. locations are not Adsense.

    If you are thinking in terms of how somewhere like Bubblews pays out so frequently from the advertising income I think people can only guess at the answer.

    Thinking of ways people have made money from setting up sites in the past, if you can launch a popular social media site and then float it on the stock market I guess you could get rich faster than by selling the advertising space.

    The advertising companies and the companies with products to advertise were once separate entities, I am not sure if they always are now. The importance of keeping the name of your product rather than your rivals in your customer's mind and therefore the need to keep the product name and image in front of your potential consumers' eyes could be what drives the need to compete to advertise.

  4. LeanMan profile image88
    LeanManposted 4 years ago

    Advertisers pay per click or per view depending on the type of advert that they are using. Most of the time through google adsense you are paid per click but the ad program here on HP is per view hence traffic is just as important as click through rates.

    The ads are generally placed on a page depending on the search history of the individual or the search query being used.

    So if you are searching for "jokes to cheer me up on a rainy day" it will not be a very valuable search for an advertiser - just think to yourself what can you sell on a page that answers the query? A comic book maybe? So the adverts that get clicked on for this page will likely only pay a penny if that!

    If however you search for "Hire Corporate Lawyer in New York"  this search is indicating both intent (they want to hire) and a high value service - The advertisers that place their ads on this page will be paying a hefty fee, sometimes 10's of dollars or even more for some searches! The advertiser may pay a lot for every click but then they stand to make a large sum if they can convert this already interested searcher. But you try and rank a page for that search and you will find the big boys are already there after that high value click!!!

    But online advertising is worth billions and it is growing every year! Google has not got where it is by earning a few bucks a day!! Many people now start any purchase with a search online!

  5. Doodlehead profile image77
    Doodleheadposted 4 years ago

    By taking most of your gross and leaving you with one penny every so often.