Making sense of adsense: why political parties spend big bucks advertising on google

Making sense of adsense: why political parties spend big bucks advertising on google

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In 2021, the World Bank estimated internet penetration in India _stood at 41 percent_. With low data charges, this number is set to grow further and that’s good news for advertising


platforms like Google and Facebook, which have emerged as major players in the digital advertising space. For the internet user, this means more ads that target people on the basis of their


browsing history. While Google dominates the search engine space – in India, it commands 95.45 percent of the market share – this is not its source of revenue. However, the data gleaned from


users of the search engine forms the basis of its revenue stream from advertising. According to a report by the_ _Indian Express__, Facebook and Google have together cornered 80 percent of


the domestic digital advertising market in India. An __Economic Times__ report noted that Google India’s profits rose by 38 percent to Rs 808 crore in the financial year of 2021. Its revenue


from advertisements stood at Rs 13, 887 crore, as reported by the __Indian Express_._ HOW GOOGLE WORKS FOR ADVERTISERS Google makes advertising revenue from advertisements carried on its


search engine and partner properties like the video platform, YouTube. In order to advertise to users and make it easier for advertisers to reach prospective clients, Google uses AdSense, a


program that lets advertisers and publishers on the Google network serve images, texts, videos and interactive advertisements to users who make up the target audience. Central to Google’s


advertising model are keywords or words and phrases used on the search engine. Keywords can be anything from a generic word for a product, a specific company or brand that sells a product,


the geographical area in which the company operates, or a combination of these variables. For example, if a user searched for “computer” on Google, the search engine would list


organically-sourced websites that explain what the device is, its history and functions, along with websites that sell computers. These search results form the basis by which individuals can


be targeted by advertisers. Once you’ve searched for a specific brand that manufactures computers and advertises with Google, you’re likely to see its advertisements on websites that allow


Google to place advertisements on their web space. Targeting of advertisements is also achieved through cookies, which are codes delivered to a visitor’s browser. These codes track users’


movements across other websites to ensure better targeting. However, in January, Google’s parent company Alphabet Inc _announced_ it would phase out support for third party cookies and its


ad tools would not support individual tracking across the internet. The phasing out of cookies doesn’t mean users will no longer be tracked. While Google has announced that it will not allow


third party cookie tracking on Chrome, there are walkarounds with new methods being used to track user data for advertising purposes. Some of the technologies that continue to store user


data and can be used to track movements in the digital space include Indexed DB and Web SQL. From a user’s perspective, even if Google does stop the usage of third party cookies on Chrome,


data collected by first-party cookies can still be used. Users may be able to opt out of tracking on some browsers – like Safari – but to ensure certain features work on their chosen


browser, the user will have to grant access to browsers and search engines to track and store data. From an advertiser’s point of view, cookies ensure their advertisements are delivered to


the intended audience. Users’ past search history and propensity to engage with and visit different websites based on their location, interests and other markers may be used to figure out


target audiences. CLICKS VS IMPRESSIONS While advertising on Google, advertisers can choose between two models: pay per click or pay per impression. In the pay-per-click model, the


advertiser pays only when a user actually clicks on an advertisement. This model is generally adopted by newer businesses as it ensures greater return on investment. However, the


pay-per-click model limits the scope of an advertisement as it goes out specifically to users most likely to click on the advertisement. If advertisers want to reach a wider audience and


increase their visibility rather than get actual clicks, they can opt for the pay-per-impressions model. This allows the advertiser to set a price for the number of impressions an


advertisement gets, or the number of people who see the advertisement. POLITICAL ADVERTISEMENTS ON GOOGLE Google’s _ad library report for India_ “includes information about ads that feature


or are run by a political party, a political candidate, or a current member of the Lok Sabha or Vidhan Sabha” between February 2019 and January 2022. According to the report, verified


political advertisers have cumulatively spent Rs 73,78,06,250 on 22,369 advertisements since 2019. The list of top advertisers includes a number of digital media agencies, which were hired


to run advertisements on Google. The top spenders on political advertisements were the Dravida Munnetra Kazhagam, which occupies both the first and fourth spots on the list (there is no


explanation from Google as to why DMK has been ranked twice). As the political party with maximum spending on Google ads, DMK spent Rs 22,25,79,000 on 2,638 advertisements between February


2019 and January 2022 and the majority of this amount – Rs 8,34,09,750 – was spent around March 2021. As the fourth-highest spender, DMK also spent Rs 4,16,97,750 on 161 ads. DMK is followed


by the Bharatiya Janata Party, which spent Rs 19,22,97,500 on 12,416 ads; followed by the All India Anna Dravida Munnetra Kazhagam, which spent Rs 7,31,37,500 on 320 ads. The Indian


National Congress is fifth on the list, with an expenditure of Rs 3,00,13,000 on 424 advertisements. Google’s ad library report also reveals that the maximum amount – around Rs 34,13,99,500


– was spent in Tamil Nadu; followed by Rs 3,88,28,250 in Uttar Pradesh; and Rs 3,43,39,750 in Maharashtra. These numbers include amounts spent on both static and video advertisements. FROM


BROWSING DATA TO TARGET AUDIENCE _Spendings by major political parties_ on the platform have gone down since 2019. For instance, Google’s data shows BJP spent Rs 2,50,00,000 on an average as


ad spend between April 15, 2019 to April 30, 2019 daily. On the other hand, when we compare the party’s ad spend in 2021, it’s just Rs 70,00,000 daily between March 15, 2021 and March 30,


2021.