Does Adsense have Potential in India ?

By Editor May 11, 2007 filed in Queries, Adsense

Hi Guys,

I have been thinking of starting a web business with adsense revenue model.
But I am just not sure about this.

My reasons….

1. For any specific keyword or keyphrase I dont see enough competition on the right side on google search. Usually it is hardly 2 pages. Meaning that the cost to get on top for an advertiser in India is not that high today. So if I were to start a website with adsense revenue model I dont really think it would be worthwhile. I have been keenly watching sites like moneycontrol.com where they do have a space for google ads. And there are times when nothing really appears in that space. So then… what are the chances???

2. When an advertiser advertises with google she has the option of choosing how much she is willing to spend on ads that will appear on site vs google search. And most advertisers would like their traffic to come from a search rather than a related site. So dont you think that the cost they would pay for advertising on related sites would be low?

What do you think about this?
Please do let me know.

Regards
Brijesh (brijeshk@gmail.com)
Bangalore

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Hi Brijesh,

Great Question. We have struggled with the same issue many a time. Basically you are saying that creating a website focussed on generating Indian traffic with an attempt to earn through Adsense doesnt make sense as competition is not too heavy in India for Sponsored Links, hence Advertisers dont need to bid high, and hence publishers like us will not earn too much per click. You are also saying that most advertisers choose not to use Content Ads, hence not making the Ad available to Adsense. In contrast, if your website caters to the USA, you would have people bidding higher and hence your website would tend to earn more.

If I were to digress for a moment, I would bring your attention to a subject in MBA called Strategic Marketing. Marketing decisions can be strategic (Long Term) or Tactical (Short Term). And therein lies the answer. If you want quick returns from a heavily competitive field, you might as well give USA traffic a shot. However, if you are thinking about making a Long Term growth in the online market, NOW is exactly the time to get into the Indian market (before the competition heats up too much) and create your own niche and inflow of traffic. Later, when the bidding increases, you will see your returns keep going up without too much of additional effort. So the idea is to work now and create that website that can be your future cash-cow.

I would not worry too much about people not advertising on Content. The fact is, as per the latest Financial Reports on Google, 41% of its online revenue for the last quarter was generated through Adsense content. While that might surprise you (it certainly did surprise us), the fact is that many people out there are using Content Advertising too. There is no reason to believe that the same trend should not continue in India.

I hope I have answered your question. And I leave with my usual refrain:

Think BIG - AND - Think LONG TERM !

Thanks,
Arnab.

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6 Responses to “Does Adsense have Potential in India ?”

Brijesh Says:
May 11th, 2007 at 11:28 am

Long term sounds good. And yes, I believe that not many are realizing the buying power of the Indian market.

This is the time to get in the “Chance Main Dance”.

Cheers
Brijesh

vivek Says:
May 12th, 2007 at 4:58 pm

there is no potential toearn from google in india. your website must be with product or services which are based ib us or europe

Arnab Says:
May 13th, 2007 at 4:55 pm

Vivek - We do have a part of our business which caters to the US market. However, you might also be surprised at the amounts that are slowly beginning to trickle in through some Indian Websites through Adsense. e.g. earnfromhomeindia.com and fresherjobsindia.com - But like I mention in my article. The earning now is not huge. I think the potential is, though !

Brijesh Says:
May 13th, 2007 at 6:51 pm

I feel that the potential is huge only if the sites are going to get traffic from natural(or is it called organic) search.

Else if you are paying to get in the traffic again with adwords or any other ppc then, then I am not sure if it can really even break even.

What do you guys think?

Cheers
Brijesh

Arnab Says:
May 14th, 2007 at 6:27 am

Brijesh - I agree. We are talking about Organic Search Results too. None of my theories imply that we should do Adsense Arbitrage (purchasing clicks on Adwords and sending to landing pages with Adsense displayed on it).

Raj P Says:
June 7th, 2007 at 2:14 pm

Hi, I’m new to blogging, this is my first http://www.indianhotscrip.blogspot.com is my first blog. I am trying to monetise it with adsense. At this moment I shall try any thing available to get hits. Right now I am trying to get it crawled by search engines.
Cheers
Raj

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