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Friday, March 26, 2010 9:41:18 PM
1. Website owners can enable text, image, and video advertisements on their websites and generate revenue on either a per-click or per-impression basis and is free to participate. (adsense)
2. Advertisers can specify the words that should trigger their ads and the maximum amount they will pay per click. When a user searches, relevant words are shown as "sponsored links" on the right side of the screen, and sometimes above the main search results. The ordering of the paid-for listings depends on other advertisers' bids and the "quality score" of all ads shown for a given search. The quality score is calculated by historical click-through rates, relevance of an advertiser's ad text and keywords, an advertiser's account history, and other relevance factors. The quality score is also to set the minimum bids for an advertiser's keywords. The minimum bid takes into consideration the quality of the landing page as well, which includes the relevancy and originality of content, navigability, and transparency into the nature of the business. (adwords)
each time a person clicks on an ad it will cost anywhere from .10 cents to over a dollar depending on how good the ad copy is.
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