A Quick Guide to Understanding How Google Ads vs AdSense Work

As a professional in the digital marketing world, you understand the importance of generating traffic and growing brand awareness. With Google's 92.61% share of the search market and wide range of advertising tools, it's essential to choose the right tool for you.

Google Ads allows businesses to create targeted campaigns that reach the right audience at the right time. In 2020, the B2B industry in the U.S. spent $8.68 billion on digital advertising: $2.508 billion of that was devoted to Google Ads. Meanwhile, AdSense enables publishers to generate passive income through targeted ad displays that reach over 90% of Internet users worldwide.

As Google monetization continues to evolve and grow, advertising professionals who stay up-to-date with the latest developments can take advantage of new opportunities to improve their clients' online advertising efforts. So whether you're an advertiser or publisher, understanding these tools can help you make informed decisions and achieve maximum impact.

What Is Google Ads?

Google Ads, formerly known as Google AdWords, is a powerful online advertising tool designed for businesses and advertisers who want to reach potential customers through digital channels. Its main focus is on providing a platform for advertisers to create, manage and optimize their ad campaigns on Google's network of websites, including Google Search, YouTube and millions of other websites that are part of the Google Display Network. The reach of ad campaigns can vary depending on a variety of factors: targeting options, allocated budget and competition for targeted keywords.

Google Ads has a feature worthy of special mention — Automated Machine Learning (AutoML). As the name suggests, it allows advertisers to use machine learning algorithms to automatically optimize their ad campaigns and improve targeting. Its main superpower is the ability to analyze large amounts of data to identify patterns and trends that can help improve the performance of ad campaigns.

There are countless benefits to using AutoML targeting for Google Ads. Let's try to highlight the main ones:

increased efficiency and accuracy in targeting the right audience for your ads;
greater reach and more impressions, leading to more potential clicks and conversions;
reduced effort required to manage campaigns, saving time and resources;
real-time optimization of campaigns based on performance data, leading to better results over time.

There is no doubt that Google Ads is an essential tool for businesses looking to increase their online visibility and reach. But let's dive deeper and understand how Google Ads is achieving these advertising miracles.

How Do Google Ads Work?

There are two ways to use the Google Ads tool: manual targeting, which means you select the audience that will see your ad; or automated machine learning targeting, which means the platform uses its algorithms to select the audience based on what they're interested in.

The reach of your ad campaign will depend on how much money you're willing to spend — the more money you spend, the more people you'll reach — and whether or not you use any other paid advertising solutions.

Since we have already touched on targeting options, it makes sense to consider them in more detail.

Keyword targeting: ads are displayed to users who search for specific keywords or phrases on Google.
Location targeting: targeting is based on users’ geographic location: country, state or city.
Device targeting: the focus is on the devices used by the user: desktop, mobile or tablet.
Audience targeting: here, targeting is based on interests, demographics and behavior: age, gender, income and browsing history.
Language targeting: targeting is based on what specific language users speak.

Google Ads allows you to target users based on a multitude of factors, like location, language and more. For example, if you want to target people who live in New York City who are also iPhone users with a specific operating system version installed, then Google Ads can help make sure those people see your ads.

What Kinds of Ads Does Google Ads Offer?

Google Ads offers a variety of ad formats that businesses can use to reach their target audience. Here are the main types of ads offered:

Search ads — text-based ads that appear at the top and bottom of Google search results pages when users search for specific keywords.
Display ads — visual ads that appear on websites and apps that are part of the Google Display Network, which includes over two million websites and reaches over 90% of internet users.
Video ads — ads that appear on YouTube and other video partner sites, either before, during or after the video content.
Shopping ads — ads that show product information, including images and prices, to people who are searching for products online.
App ads — ads that promote mobile apps across Google's search and display networks, as well as on Google Play.
Local ads — ads that appear on Google Maps and in Google search results for local businesses.
Discovery ads — native ads that appear on Google Discover, which is a personalized feed of content recommendations that Google offers to users.

Each of these ad formats has its own unique set of features, targeting options and bidding strategies, allowing businesses to choose the format that best suits their advertising goals and budget.

How is Ad Optimization Implemented in Google Ads?

As a refresher, ad optimization is the process of improving ad performance by making changes to the targeting, bidding, ad creatives and other factors. Google provides a range of tools and features to help advertisers optimize their ads, including analytics dashboards, audience targeting options and machine learning algorithms that can automatically adjust bidding and targeting based on performance data.

So, what are the options for ad optimization in Google Ads?

Use ad rotation. Advertisers can set their ads to rotate evenly or optimize for clicks or conversions. Testing different ad creatives and rotations can help improve ad performance.
Optimize ad targeting. Google Ads offers a variety of targeting options, including demographics, interests and location, to help advertisers reach their desired audience.
Use ad scheduling. Advertisers can set their ads to run at specific times of the day or on specific days of the week to maximize their reach and ad performance.
Monitor performance. Google Ads provides detailed performance reports that indicate which ads are generating the most clicks and conversions. Using this data, advertisers can adjust their ad targeting, bidding and messaging to improve performance.

Google Ads vs Facebook, Bing and Yahoo Ads

When you're looking to advertise your business online, you will need to decide which platform to choose. In this table, we compare Google Ads, Yahoo ads, Bing ads and Facebook ads.

Note: These metrics are approximate and may vary depending on many factors, including industry, audience, ad format and bidding strategy.

What do we see? We see that Google Ads offers extensive targeting options and a high reach, while Facebook Ads has a higher conversion rate and more specific audience targeting. While Bing Ads and Yahoo Ads have more limited targeting options and lower reach, both platforms can still be effective for certain industries and demographics. As it were, the choice of advertising platform will depend on your specific marketing goals, audience and budget.

What Is Google AdSense?

Google AdSense is a tool that allows publishers to monetize their websites. It's pretty simple: you put in a code, and then ads show up on your website. You are paid for clicks and impressions, and it's a pretty good deal for everyone involved.

The most important thing to know about AdSense is that it's not just a way to make money — it's also a way to grow your audience. Publishers have seen a huge growth in their traffic with AdSense because it attracts new readers who are interested in the ads they see on the page.

In addition, AdSense gives publishers control over the ads displayed on their website. They can block ads from specific advertisers or categories, or they can set up competitive ad filters to block ads from competitors. Detailed performance reports provided by AdSense include information on ad clicks, impressions and earnings. Publishers can use this data to optimize their ad campaigns and improve their revenue.

How Does AdSense Work?

To use AdSense, publishers must first create an account and add a code snippet to their website or blog. This code generates ad units that are designed to match the look and feel of the publisher's site.

Then, using AdSense's machine learning algorithms, Google matches ads to the content of the publisher's website and the interests of its visitors, ensuring that the ads are relevant and engaging.

AdSense uses a variety of targeting options to display relevant ads to users.

Contextual targeting matches ads to the content on the publisher's website.
Behavioral targeting shows ads based on the user's browsing behavior and interests.
Geographic targeting helps to target ads to specific geographic locations.
Placement targeting allows publishers to choose specific ad placements on their website to target specific audiences.
Device targeting allows publishers to target ads to specific device types.
Demographic targeting picks up ads based on a user's age, gender and other demographic factors.

The benefits of working with AdSense are numerous: it allows publishers to diversify their revenue streams, increase traffic to their sites and improve brand awareness among current and potential customers.

What Kinds of Ads Does AdSense Show?

There are many different kinds of ads that can be placed with AdSense:

Display ads — image-based ads that come in a variety of sizes and can be placed in various locations on a webpage.
Text ads — text-based ads that appear as a link or a short sentence, usually displayed in a small box on a webpage.
Link units — groups of text links that are displayed in a block, directing a user to a page of relevant ads upon clicking.
Matched content ads — ads related to the content on a webpage, appearing in the form of a grid or a list of recommended articles.
In-feed ads — ads designed to blend in with a publisher's content appearing within a publisher's list of articles or products.
In-article ads — ads displayed within a publisher's article or content, appearing as a block of ads or as a single ad unit.

AdSense also offers responsive ad units that can automatically adjust their size and format to fit the screen of the user's device. This ensures that ads are displayed in the optimal format for each user, regardless of their device or screen size.

How is Ad Optimization Implemented in Google AdSense?

Ad optimization doesn't work only for advertisers: it is also useful for publishers. In addition to increasing the click-through rate and revenue generated by ads, the website owner gets the opportunity to improve the user experience for all visitors.

How can you optimize ads with Google AdSense?

Use auto ads. Google AdSense offers an "auto ads" feature that uses machine learning to analyze a website's content and place ads in the best-performing locations.
Optimize ad formats. Publishers can customize ad formats to fit a website's design and layout. Testing different ad formats and placements help optimize ad performance.
Monitor performance. Detailed performance reports show which ads are generating the most revenue and which are underperforming.
Use ad balance. AdSense's ad balance feature allows publishers to show only their best-performing ads, which can help improve overall performance.

Google Ads vs Google AdSense

Google Ads and AdSense are both powerful tools for Google monetization, but there are key differences. Google Ads allows businesses and advertisers to bid for ad placements on Google's search results and affiliated properties. On the other hand, Google AdSense lets publishers sell ad space on their websites and earn commission from displaying ads.

The main difference between Google Ads vs AdSense is that Google Ads is used by advertisers to create and display ads, while Google AdSense is used by publishers to monetize their online content by displaying ads on their websites.

Now, let's delve into some of the primary distinctions between Google Ads and Google AdSense.

Payment Concept

When it comes to Google AdSense vs Google Ads comparison, advertisers pay for their ads to be displayed on Google's network through a pay-per-click model, while publishers earn revenue from displaying ads on their website or app through commissions paid by Google AdSense. In short, advertisers pay for Google Ads, while publishers get paid by Google AdSense.

Set-Up Process

While set up for both Google Ads and Google AdSense is relatively simple, each tool has its own setup and work processes that are unique to it:

Google Ads. Advertisers create an account, set up a campaign, create ad groups and creatives and choose where and when to display their ads. They can optimize campaigns and measure performance.
Google AdSense. Publishers create an account, set up ad units and place a generated ad code on their website or app to display relevant ads. AdSense dashboard gives them a possibility to monitor ad performance and revenue.

Ad Limit

There are notable distinctions in the ad limits employed in Google AdSense vs Google Ads.

Google AdSense has restrictions on the number of ads that can be displayed on a website to ensure a good user experience. Publishers are allowed to display up to 3 display ads per page, as well as 3 link units and 2 search boxes. However, publishers can place an unlimited number of ads on their pages using AdSense for Search.

In turn, Google Ads has restrictions on the number of ads that can be created within a single campaign. For example, in a search campaign, advertisers are limited to a maximum of 15 ad groups per campaign, and each ad group can contain up to 50 ads. In a display campaign, advertisers are limited to a maximum of 10,000 targeting items — including ads — per ad group.

Google Ads vs Google AdSense Comparison Chart

For a comprehensive AdSense vs Google Ads comparison, refer to the chart below.

Boost AdSense with MGID

While Google AdSense is a popular choice for many publishers, why limit yourself to just one platform? By adopting a comprehensive Google monetization strategy and integrating AdSense with other reputable networks like MGID, you have the potential to access a wider range of high-quality ads and significantly increase their earnings.

By integrating MGID's ads onto your website, you'll have access to a wider range of high-quality ads and more data about your website traffic. Plus, with MGID's top advertisers added to your mix, you'll be in a great position to maximize your Google monetization potential.

The benefits don't stop there. MGID's team is committed to helping you optimize your ad widgets for maximum revenue. We'll work with you to create widgets that are effective on your website and experiment with different ad placements to find the most profitable strategy.

By teaming up with MGID and AdSense, you'll be well on your way to earning more than ever before. Ready to take the next step? Follow the link below to learn more about MGID and start maximizing your ad revenue today.

Learn more about MGID & AdSense

Bottom Line

By understanding the key differences between Google Ads vs AdSense and their respective approaches to Google monetization, you can make an informed decision on which platform to use based on your specific goals and priorities. While Google Ads is ideal for advertisers who want to create and manage ad campaigns, Google AdSense is best suited for publishers who want to display ads and earn a commission.

Ultimately, the choice between Google Ads vs Google AdSense will depend on your unique circumstances and what you hope to achieve.