Marketing and Business Intelligence

Differences between Adwords and Adsense

Picture of Julián Sánchez
Julian Sanchez
Do you know that it is possible to monetize with Google? We present two of the ways in which you can do it

Monetizing with Google is no longer what it used to be, we will agree on that. Certain ad policies and the impact on positioning seo, in addition to some bad practices on the part of the Google company, have greatly reduced profits in terms of monetize with advertising refers.

What is Adsense and Adwords?

Both platforms belong to Google and aim to manage the Google advertising. However, some of our clients have asked us many times if they are interested in using Adwords (now Google Ads) or on the contrary in better invest in Seo. At the same time, others ask us about the use of Adsense, if it will be profitable for them or if it will harm the conversion on their website.
These doubts do not have a clear answer since they depend on the type of website, market niche and, above all, web traffic. However, I will try to briefly explain the main differences between the two platforms in order to provide a little more information.

What are the differences between Adwords and Adsense?

Google AdWords allows you to create ads that will appear on Google search results pages and on our network of sites. partners while Google AdSense publishes Google AdWords ads on private websites. Google pays web publishers for ads served on their website based on user clicks.

What is Google Adwords?

It is a service and program of Google to offer promoted advertising to future advertisers. These ads appear in search results: text, banners, images, video...
It is a method of payment for dynamic advertising for the client: the user will pay or be charged for the traffic generated in one direction or another through the concept of pay per click, they will only pay for those ads that have been clicked on. Website owners will be paid based on the number of clicks that the ads on their website have generated. Furthermore, it is the main source of google revenue.

How does Google Adwords work?

● Pay per click /PPC/CPC
● Click price via auction and quality score
● Highly variable investment: it depends on the quality of the advertisement or landing page, the position in which the advertisement appears, and the relevance of the advertisement with respect to the user's search.
● Campaigns: ad groups and keywords.
Google ranks based on ad rank. The maximum price that the advertiser is willing to pay per keyword and the quality level (Quality Score) of the keyword is multiplied.

Google AdWords – Quality Score (QS)

The QS obtains values ​​from 1 to 10. Sample of the anticipated impact of the announcement but it does not guarantee position. QS establishes the relationship between the content of the ad and the user's search. A high QS means that the user's search (keyword used) is closely related to the keyword the advertiser is bidding on.

Quality Score (QS) Components

● Expected click-through rate.
● Relevance of the ad and the experience of the landing page: match between the search term (keyword) and the ad.
● The landing page experience It has to do with the fact that when a user clicks on your ad, they actually find what is described in the ad and it is useful to them.

Google AdWords – Cost Per Click

● Cost per click: We combine the components of the QS and the maximum CPC bid
● Auction
– When you do a search, the AdWords system finds ads whose keywords match your search.
– Of those ads, the system ignores those that are not eligible, for example ads targeted for another country.
– Of the remaining ads, only those with a high enough Ad Rank can be shown. Ad Rank is a combination of your bid, ad quality, and the expected impact of extensions and other ad formats.
● Maximum CPC: determines the maximum price per click.
● CPM: Cost per thousand.
● Actual cost per click: Actual CPC = (Ad Rank of Next Highest Bidder / Quality Score of Winning Bidder) + €0,01
● Calculation of conversions. CPA or Cost Per Action

Google AdWords – Real CPC Example

example adsense and adwords
If the advertiser Oriental Massages wanted to occupy the first position, they would have to increase their bid to €1,66 of CPC to have an Ad Rank of 1,7
Ad Rank = Maximum CPC bid x Quality Score = 1€ x 66 = 1.

Google AdWords – Example Ad

adwords ad example

Google AdSense

Google advertising service that allows you to obtain passive income by placing advertising on our website. On the websites where we have ads we charge per click under certain conditions:
– Have a website with traffic
– Registration on the Google Adsense platform
– Creation of ad units

Google AdSense – How does it work?

● AdSense sets ads based on web content
● Ads created and paid for by advertisers
● Different rates for each type of ad
● Variable income

Google AdSense – Web Traffic

To analyze our page traffic, we may use Google Analytics.

Google AdSense – Registration and ad block

We create a block of code where Google introduces ads and insert it into our website.

Google AdSense – Income

When a user clicks on the ad, we and Google get paid.

How do the ads work?

● Advertisers pay Google to promote their products
● Ad auction. CPC
● Google AdWords advertisers on the Google Display Network bid to show their ads on AdSense for content publisher sites.

AdSense – Advantages and Disadvantages


● Non-invasive advertising
● Improves positioning where it is used
● Easy implementation
● Asynchronous loading of ads


● Pay less than other services
● Cash only with high traffic
● Does not allow other advertising services
● Does not allow specific products, such as Amazon

Alternatives to AdSense

● Affiliate networks: if you are an affiliate you assume the risk of displaying advertising without receiving anything in return. This model only generates income if you bring registrations or sales for the advertiser.
● Marketplaces: For websites with a lot of traffic, they are a good option since they work with CPM models (cost per thousand impressions). In Spain there are ADPV and impresions Web.
● Intext-ads: an additional way to generate income in an automated way are sponsored links within the article. This format in some cases is not very well seen by the user because he confuses it with a normal link.
● WordPress WordAds: since 2011 it has not been developed as expected.

Sources and bibliography

● Advanced Google AdWords Third edition. Geddes, Brad
● Introduction to Search Engine Marketing and AdWords: A Guide for Absolute Beginners, Kelsey, Todd

Link to presentation.


In our opinion, Google Adsense It is very good to monetize passively. In a blog with high traffic it is advisable to try it. However, if your website is an ecommerce it could lead to a customer drain when viewing similar Adwords products. Ads is useful for launching seasonal campaigns, temporary promotions or removing stock from your store. Ads is hard since it forces you to review prices per bid and choose the keyword well for a low price and a high conversion rate.

Remember that in our agency Seo We can help you optimize your spending on positioning Seo.

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