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Lecture 11

JOUR 331 Lecture Notes - Lecture 11: Adwords, Disney.Com, The Washington Post

Course Code
JOUR 331
Yan Shan

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JOUR 331- 11/16
How does Google make its money?
Google’s Money-Making Machine:
-Google’s net income was $16.34 billion in 2015, an increase of 15% compared to 2014
-Google’s annual report: “We generate revenue primarily by delivering relevant, cost-effective
online advertising.”
-97% of Google’s revenue is from online advertising...
Search Advertising→ advertising shows up when searched
Display Advertising→ embedded in websites
Video Advertising→ ads on YouTube
Search Advertising on Google AdWords
-the Google Search Network is a group of search-related websites where your ads can appear
-includes Google search sites and search partner sites
The Ad Auction- what happens behind every search
1. The search query- “Cal Poly Bookstore”
2. Ads are whittled down
How does the AdWords Auction work?
It all starts with a query.
How does Google determine which ad is shown where?
Ad rank= CPC Bid x Quality Score
CPC Bid→ for each click, how much are you willing to pay
Quality Score→ 1-10 score determined by… traffic for website, whether landing page is relevant
to search, etc.
How does Google determine what you pay?
Your price = the ad rank of the person below you
your quality score + $.01
Why use PPC (Pay Per Click):
- You only advertise to people who are looking for what you have right now
- You only pay when they respond-when they click through to your site
find more resources at
find more resources at
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