Welcome to part 2 of our series on Google Adsense. Adsense is one of the most widely used systems to monetize blogs and websites worldwide. We are discussing how to do it better and how to incorporate it into your blog. Part 1 can be found here.

You may be considering adding adsense to your existing blog OR you may be considering designing an entire blog around a few keywords with the intent to monetize. In either case I think it’s important that you have some idea how to recognize the difference between high paying keywords and low paying keywords. We will take a look at that with this article.

Google Adwords

It is important for you to understand that a working knowledge of adwords will allow you a much better understanding of adsense. Adsense ads are the result of adword publishers who are trying to bring visitors to their product or service. They bid on keywords that they feel web users search on for products or services.

If you do a google search on something, take a look at the column all the way to the right. These are adword advertisers who have bid on the keywords that brought up these search results. The more they are willing to bid on the keywords then the higher they show up in the search results.

In theory the higher they show in the results then the more likely they are to garner a click. Once they garner that click then the sell job starts and the landing page takes over. The entire game depends on them being able to convert enough clicks into sales that they recoup the money they paid for the clicks and then some.

How does this matter to you?

The higher and advertiser is willing to pay for their clicks then typically the EPC will be higher on your end. Google does not publish any kind of rate scale and in fact they will price clicks differently for different people. If your site has a history of garnering good traffic and converting clicks to sales then you will be rewarded with a higher EPC than someone who has a history of meaningless clicks that don’t convert.

In a nutshell, the niche plays a large part of your EPC but so does the quality of your site and your traffic. This is a very simplified discussion but you get the basic idea of the way the system works.

If you click here on the Traffic Estimator that is available in Google Adwords then you can get a rough idea of the amount of competition that your keywords will generate. You can figure anywhere from 5% of the CPC to as much as 50% of the CPC returned to you as income for your clicks.

You can see here I have done a search on Make Money Blogging. It returns an estimated CPC of 3.06 to 4.34 cents. You could expect somewhere between 5 to 50% of this everytime someone clicks your ads. This is such a broad spread because it depends on the quality of your site, your traffic, the ads and which individual ad ends up being served at that given time.

What does This Mean?

Ok so we know how to estimate our EPC….so what? Good question….it really shouldn’t make much difference in your article selection as your #1 goal should be writing content that is true to your site. What it does show you is a way to incorporate better keywords into your posts.

These keywords can mean the difference between earning a nickel a click or 1.00 a click. Which would you prefer?

If you are considering building niche blogs then you could also use this tool to identify niche blogs that will return the most money for each adsense click. Play around with the keyword tool in adwords and you will start to see a whole lot of possibilities.

Conclusion

This is a brief introduction to Adwords and the role that they play in determining your EPC. If you are incorporating Adsense into an existing blog then this may not be as important as it is to you if you are starting up a niche blog. If you build your blog around low paying keywords then you are likely to be disappointed with adsense and maybe a different monetization method would be suitable.

If you can incorporate the CPC estimator into your blog posts and build your posts around certain keywords then you will see the benefits on each and every click. A few hours in the traffic estimator will quickly show you how much variance their can be from topic to topic. It is significant.

Stay tuned for part 3 in our series on Google Adsense and Making Money with your Blog.

If you missed Part 1 then you can find it here.