Comparison: Google AdSense and Amazon Affiliate

Before we make any comparison between Goggle AdSense and Amazon Associates, let us first discuss the type of online advertisements.

CPC (cost per click): also know as PPC (pay per click). Publisher get paid only when visitor click on an advertisement. No click, no pay

CPM (cost per thousand impressions): Publisher get paid each time a CPM ad is displayed. Amount paid per impression (amount paid each time CPM ad is displayed) is the same irrespective of whether visitor click on the ad or whether an action (like buying something) by visitor is induced by the CPM ad. CPM is called cost per 1000 impressions because the amount paid for a single impression is usually very little, so that amount per impression is multiplied by 1000 to create a figure that is more meaningful.

CPA (cost per action): Also called PPA (pay per action or pay per aquisition), CPA ads require visitors to do more than just clicking on an ad. Publisher get paid only when a visitor who clicked on a CPA ad acted upon the advertisement such as buy something, filled in a form or other pre-defined action. No action, no pay.

Comparison between Google AdSense and Amazon Associates

Google AdSense serves all three types of ads - CPC, CPM and CPA and thus has a huge inventory to draw from to display in a publisher's website or blog and thus gives publishers a better chance of getting income from publishing content. Furthermore, CPC and CPM ads offer an easier path to earning something from ads as compared to CPA ads which require action.

However, AdSense ads uses Javascript. Blogs using the Blogger platform for their blog cannot copy-paste Javascript into their posts (post editor) and thus faces restrictions within the actual content, a section much more visible to visitors (and thus more effective) than places like the sidebar, footer, etc.

Amazon uses both Javascript as well as active hyperlinks. Such hyperlinks (HTML) can very easily be incorporated any place which allows HTML and that include posts like this one.

For example, I can incorporate an Amazon ad within this sentence by making reference to blogging. Try clicking on this link or the preceding link and you will discover that you have ended up in Amazon's site and if you purchase anything from Amazon, a commission will be paid.

However, as mentioned above, Amazon Associates serve only PPA ads (visitor need to purchase something) which means earnings are harder to generate. My experience is that earnings from AdSense is many times more from than Amazon Associates.

Shelf life (Paste and forget)

Google AdSense is very much a "paste and forget" operation because a publisher only has to paste AdSense's Javascript in the proper place and forget about it. AdSense will continue to serve relevant ads there without publisher having to do anything.

Amazon Associates however have such thing as time limited special offers which expires and after which expiry date, the links need to be removed. Amazon Associate can also link to a specific product or page which has a shelf life (expiry date), for example, link to a book. Books can become out of print which then render the Amazon link irrelevant. (This is why I usually link to a search page which never expire)