Maximizing AdSense Revenues via Up-Selling

If you go into any Blockbuster Video store, you quickly notice the
company’s use of a classic marketing technique – up-selling correlated
products. This technique is highly effective at maximizing
Blockbuster’s revenue and profit per customer. Moreover, this same
technique can be applied to websites using Google’s AdSense program.

Up-selling
is defined as selling additional, often higher priced, products and
services to current customers. Ideally, the upsold products are
correlated to the initial products – that is, they fill the same, or
similar customer need that the first product did. Blockbuster up-sells
its rental customers by offering them new and previously owned videos
for sale. It also groups videos and posts signs saying “if you liked
this video, you’ll like this video” spurring rentals of the new video.

To
show how this technique can be applied to Google AdSense, let us look
at an example of a painting website. To begin, it is critical to
understand that by enrolling in the AdSense program the “product” that
this website is selling is the keyword “paint” or “painting” as these
keywords will show up in the AdSense results posted on their web pages.
It is also critical to understand the price of these keywords, or how
much the advertiser pays when someone clicks on one of their ads (a
portion of which is passed on from Google to the owner of the painting
website). In this case, top advertisers are paying approximately 19
cents for the keyword “paint” and 45 cents for the keyword “painting.”

By
applying the technique of up-selling correlated products to the
painting website, the website owner could dramatically increase the
price of its products and the rate at which people buy (click on) the
product. Like in the Blockbuster example, the key is to first determine
expensive, correlated products to up-sell. In the painting case, one
keyword that quickly comes to mind is “home remodeling” as painting is
often part of a larger home remodeling project. Moreover, “home
remodeling” has a price of $1.70, or nearly nine times the price of
“paint.” Furthermore, finding keywords correlated to “home remodeling”
yields even more expensive keywords such as “home improvement loan”
which currently has a price of $6.50, or thirty-four times the price of
the original term “paint.”

Now that the more expensive and
correlated products have been identified, the website owner must create
web pages with quality content about these products and entice, via
text and links, visitors to go to these pages. The higher quality the
content, the more enticing the product or service becomes, and the more
likely a visitor is to click on one of the high paying AdSense ads.

In
summary, by simply posting AdSense ads on their websites, most website
owners are losing out on significant profits. Rather, they must
identify the most expensive keywords that are correlated to their
existing keywords and create web pages with quality content about these
pages. While this requires some work, the returns on this investment
are significant.

Source

This entry was posted on Friday, February 20th, 2009 at 4:51 pm and is filed under Adsense, Online Earning, Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.