Create your own Google Adsense Network

Image via CrunchBase

After being banned from Google Adsense a few times while learning the ropes of SEO (and slipping through a few) I decided I wanted to learn more about 3 things.

1. Why was I banned?
2. What detected the violation?
3. What can I do to get around this?

So I began learning about CPM, CTR and ROI, investigating other PPC programs like Adbrite, and researching the path a popular piece of original content took on its way to “viral” status. I’ve developed a few theories on the subject however these are not what this article is about. This is about starting your own PPC ad network and taking Google out of the equation.

So here are the steps on how to create a mini-Google Adsense with Open Source Software and $100.00 in overhead.

What you’ll need:

• Dedicated Server: 3 months ($89.00) Server Pronto
• Domain Name 1 year (9.99) Godaddy
• OpenX
• Linux, Apache, PHP5, MYSQL (free) Gentoo Linux

Steps

1. Buy your server. I wouldn’t recommend buying more than 3 months to begin with unless you can really afford it. Its easy to extend your contract and if you’ve got backups of your site you can ditch your company for a cheaper one anytime you want. The great thing about Linux based hosts is that you have total control over your system, security, and backups. Moving to a new host is as easy as dumping the database and SCP’ing the files. Server Pronto has a great deal for 3 months with a price tag of $89.00. They also support Linux.
2. Head over to your favorite domain registrar and grab a catchy name. GoDaddy always has specials for 9-14 dollars for the first year. Try and get something that will appeal to your audience of advertisers. A silly Web 2.0 name like SpanDingle.com is not going to work. I didn’t Google that so SpanDingle.com might be available…but anyways…
3. Get OpenX AdServer. This is the real meat and potatoes of the tutorial. OpenX is an ad server that allows you to specify campaign profiles and assign them to your different sales managers and agents. Your stats are fully tracked and emailed to the right person on a weekly basis. You can set your own cost per impression and determine a fair CPM/CPC rate for your advertisers. Pair the stats with a Google Analytics account and you’ll have everything you need to invoice your clients at the end of the month.
4. OpenX is designed to run in an LAMP environment. There is no overhead for this open source software. The only overhead is the learning curve, which varies from distribution to distribution. I use Gentoo for all of my servers for its security, tight documentation and active developer base. Linux, if configured correctly, will get you much more life out of your server’s hardware, and cut costs on monthly overhead.

Now for the hard part: Selling the ads. You’re going to need to do 2 things. First, you need places to show your ads. Contact medium-traffic websites within your market and ask them if they’d like free advertising on the web. Tell them you’re starting a “Ads by Google” system (people will recognize this more than ‘Adsense’) and you’re GIVING away impressions to anyone who wishes to show a few text links on their own site. You can assure them that their direct competition will not be advertising on their site by sectioning your campaigns into inter-market niches. For example: if you’re targeting the Gardening industry, sell your soil and mulch campaigns to the hardware stores, and the hardware stores to the materials suppliers, and so on. Every advertiser is a potential publisher and vice versa.

Well, thats all for now. Has anyone else tried this before? Am I crazy?

Edit:

At request, here are some OpenX Screenshots.

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