Google Ads vs AdSense: What‘s the Difference and Which Should You Use in 2024?
Digital advertising is a rapidly evolving space and it can be hard to keep up with all the different platforms and solutions out there. Two of the biggest players that you‘ve likely heard of are Google Ads and Google AdSense. While they‘re both advertising tools from Google, they serve very different purposes.
In this article, we‘ll break down exactly what Google Ads and AdSense are, how they work, the key differences between them, and how to determine which one you should use for your business. Let‘s dive in!
What is Google Ads?
Google Ads, formerly known as Google AdWords, is an online advertising platform that allows businesses to promote their products and services on Google Search, YouTube, and other websites. Advertisers can create and run ad campaigns based on specific goals like driving website traffic, generating leads, or increasing sales.
There are two main types of ads you can run using Google Ads:
- Search Ads
Search ads are text ads that appear at the top of Google search results pages when someone searches for keywords related to your business. For example, if you own a flower shop, your ad might show up when someone searches "flower delivery".
Search ads operate on a pay-per-click (PPC) model, meaning you pay each time someone clicks on your ad. You bid on keywords during the ad auction, and your placement is determined by your bid amount and Quality Score (Google‘s rating of the relevance and usefulness of your ads and website).
- Display Ads
Display ads are image-based banner ads that appear on websites and apps that are part of the Google Display Network – a network of over 2 million websites that reaches over 90% of global internet users. Display ads offer more visual and engaging formats beyond just text.
With display ads, you have additional bidding options besides cost-per-click, like cost-per-thousand-impressions (CPM) if your goal is brand awareness rather than direct response. You can also target your ads in different ways, such as by audience demographics, interests, or previous interactions with your business.
How Google Ads Works for Advertisers
To launch a Google Ads campaign, you start by choosing a campaign goal and type (search or display), and then set your budget and bidding strategy. For search campaigns, you select relevant keywords to bid on and create ad groups with tailored ad copy and landing pages for each theme.
Google Ads operates on an auction system, where advertisers compete for ad placement on search results and websites. However, the auction winner isn‘t just the highest monetary bidder – it‘s the advertiser with the highest Ad Rank, which factors in both your bid amount and your Quality Score.
Quality Score is basically a measure of relevance – it looks at how closely your ad copy and landing page align with the user‘s search query, as well as your expected click-through-rate and other factors. This system ensures that users see ads that are actually helpful to them, not just the ones with the biggest budgets behind them.
One of the biggest advantages of Google Ads for advertisers is the platform‘s immense reach. Google is the world‘s most popular search engine, processing over 8.5 billion searches per day. This means huge potential to get your ads in front of interested audiences actively searching for what you offer. Plus, the Google Display Network offers expansive opportunities for brand visibility.
Another benefit is the robust data and insights Google Ads provides, allowing you to continuously optimize your campaigns. You can see metrics like impressions, clicks, conversions, and cost-per-click, as well as tools like keyword planners to identify high-value search terms. This wealth of information helps you refine your strategy and maximize ROI.
What is Google AdSense?
Now let‘s shift gears to Google AdSense. AdSense is a program that allows online publishers (website owners) to monetize their content by displaying Google ads. Essentially, AdSense turns your website into ad space that Google can sell to advertisers. When a visitor to your site views or clicks an ad, you earn money.
Google AdSense ads are pulled from display campaigns run through Google Ads. Advertisers bid on ad placements, and Google automatically selects the most relevant and highest paying ads to show on your site based on your content and visitor information. The ads are delivered on a per-impression or per-click basis.
How AdSense Works for Publishers
To get started with AdSense, publishers need to create an account and submit their website for review. Once approved, you can add the AdSense code to your website, which will prompt it to start showing ads. You have some control over the look and placement of ads using custom templates and size options.
As the publisher, you don‘t have direct control over which specific ads appear on your site. Rather, Google‘s algorithms do the behind-the-scenes work to match ads to your site‘s content and audience. However, you can block certain categories of ads or specific URLs if you don‘t want them appearing.
The commission you earn with AdSense depends on factors like the competitiveness of the keyword niche, your site traffic, the location of the ads on your pages, and the amount advertisers are bidding for placements. Typically, publishers receive 68% of the amount advertisers pay per click or per thousand ad impressions. Payments are issued once your account reaches a $100 threshold.
One major perk of AdSense is how easy it is to set up and manage. Unlike some other ad networks that require direct sponsor relationships, AdSense eliminates most of the admin work on the publisher side – Google handles all the ad selling and placement for you. This is ideal for smaller publishers who want a monetization solution without a big time investment.
Another benefit is that AdSense gives you access to Google advertisers and all their ad budget demand, meaning more earning potential for quality ad space. Many publishers find that AdSense payouts are quite competitive compared to other ad programs.
Key Differences Between Google Ads and AdSense
While both Google Ads and AdSense involve PPC advertising, it‘s important to understand that they cater to two distinct user groups. Ads is a tool for advertisers to promote their own products and services, while AdSense is a tool for publishers to monetize their website content.
Here are the main differences between the two:
User:
- Google Ads is for advertisers who want to display their ads on Google and across the web
- AdSense is for publishers who want to monetize their website content with ads
Ads Displayed:
- Ads includes text-based search ads and banner display ads in various formats
- AdSense only involves showing display ads from the Google Display Network on your website
Purpose:
- Ads is to drive traffic to the advertiser‘s site and generate sales or leads
- AdSense is to provide income to the publisher by placing third-party ads on their site
Earning Model:
- With Ads, advertisers pay per click or impression on their ads and set their own budget
- With AdSense, publishers are paid per click or impression on the ads shown on their site
Should You Use Google Ads or AdSense?
Now that you understand the fundamental differences between Google Ads and AdSense, you may be wondering which one is right for your business. The answer depends on your specific goals and website setup.
Google Ads is the best choice if:
- You sell a product or service and your goal is to drive sales or generate leads
- You want to proactively reach new audiences and get your brand in front of high-intent searchers
- You have a well-designed website optimized for conversions
- You have the time and resources to actively manage and optimize campaigns
Google Ads is an incredibly effective tool for businesses that want to aggressively grow and reach their marketing targets, but it does require more of an investment of both time and ad budget.
On the flip side, Google AdSense is a great option if:
- You‘re a publisher, blogger, or content creator looking to monetize your traffic
- You‘re focused on generating passive revenue from your website(s)
- You have a content-rich site in a niche that attracts valuable audiences
- You don‘t have the desire or means to sell your own ads directly
Many online publishers find that AdSense is the most low-maintenance, hands-off way to earn money from their web properties without detracting from user experience.
All that said, using Google Ads and AdSense is not an either-or proposition. They serve two totally different purposes, so many businesses can leverage both in their overall marketing strategy.
For instance, you might use Google Ads to drive traffic to your website, product pages, or landing pages, and then use AdSense to monetize other informational content you publish, like blog posts. This way, you‘re attracting new potential customers and monetizing your existing audience simultaneously.
Tips for Success with Google Ads and AdSense
Whether you use Google Ads, AdSense, or both, there are some best practices you can follow to maximize your results and revenue. Let‘s break them down:
Google Ads Tips
- Zero in on high-value, relevant keywords to bid on using the Google Ads Keyword Planner
- Write compelling ad copy that showcases your unique value proposition and includes a clear call-to-action
- Create a smooth user experience by aligning your ad copy and landing pages
- Leverage Google‘s audience targeting capabilities to reach the right people at the right time
- Experiment with different bidding strategies, like Enhanced CPC or Target CPA, to optimize for your goals
- Monitor your campaigns regularly and make data-driven optimizations to improve performance
AdSense Tips
- Focus on creating high-quality content that will attract an audience and encourage them to stay on your site longer
- Place ads strategically in high-visibility areas, like above the fold or near engaging content
- Experiment with different ad sizes and formats to see what generates the most revenue
- Avoid cluttering your site with too many ads, which can hurt user experience and SEO
- Keep tabs on your content to ensure ads are relevant – if you cover a wide range of topics, consider creating separate content categories
- Monitor your AdSense reports and keep learning about your audience to deliver the best user experience
The Takeaway
Google Ads and Google AdSense are two powerful but distinct tools in the Google advertising ecosystem. Ads allows advertisers to proactively reach target audiences and drive conversions, while AdSense enables publishers to monetize their content retroactively.
To decide which one to use, consider your primary business model and goals. Do you want to market your products and services to drum up sales? Go with Google Ads. Is your website more of an informational hub that attracts niche audiences? AdSense may be your best bet.
Many businesses utilize both Google Ads and AdSense at different points in their marketing funnel. The key is to approach them as separate tools and develop strategies that map to each of their strengths.
Ultimately, whether you use one or both platforms, you‘ll have the benefit of tapping into Google‘s gargantuan network and user base. By putting best practices into play and continuously optimizing your ads or website, you can unlock a reliable, scalable revenue stream.
