Sunday, July 4, 2010

How does Google AdSense Works?

Before getting down to the nitty gritty, I want to go over how AdSense works in case some things are unclear.

AdSense is a hybrid of Google’s Webmaster advertising program called AdWords. In a nutshell, Webmasters are paying Google to promote their ads on Every time an ad gets clicked, Google deducts a pre-determined amount from their advertising budget.

You can see these AdWords ads by doing almost any search on Google and the ads show up in the far right-hand side of the page. See the screenshot below.

Now, AdSense is a program derived from AdWords that allows publishers (other Web site and blog owners like you and me) to promote these same AdWords ads on our own sites.
Then Google pays us, the publishers, a certain percentage of what the AdWords customers are paying Google for those ads.

In other words, as an AdSense publisher, you are helping Google advertise these AdWords ads, and Google is paying you a share of the revenue they earn every time your visitors click on your ads.

So let’s say you have a Web site on chocolate cake recipes. When you join AdSense, Google will supply you with a few lines of JavaScript code that you paste into your site (It’s very easy to do!).

And because of their savvy technology, Google can actually read your page title, content, etc. and interpret what each page is about. So the ads that show up on your site are relevant to the topic on your pages.

This increases the chance that people will click on your ads and of course that just means more earnings for you.

Google will never disclose how much you will earn per click, but you can earn anywhere between .01 and $10.00 per click, and perhaps even more. Keep in mind these numbers are just estimates. Google has never supplied any specific data on how much you can earn. They keep this kind of information very close to the vest.

So once your account reaches $100.00, Google sends you a check. And you can even have them direct deposit the check right into your bank account.

An inside web process:
·       The webmaster inserts the AdSense JavaScript code into a webpage.
·       Each time this page is visited, the JavaScript code uses inlined JSON to display content fetched from Google's servers.
·       For contextual advertisements, Google's servers use a cache of the page to determine a set of high-value keywords. If keywords have been cached already, advertisements are served for those keywords based on the AdWords bidding system. (More details are described in the AdSense patent.)
·       For site-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements, and pays based on cost per mille (CPM), or the price advertisers choose to pay for every thousand advertisements displayed.
·       For referrals, Google adds money to the advertiser's account when visitors either download the referred software or subscribe to the referred service. The referral program was retired in August 2008.
·       Search advertisements are added to the list of results after the visitor performs a search.
·       Because the JavaScript is sent to the Web browser when the page is requested, it is possible for other website owners to copy the JavaScript code into their own webpages. To protect against this type of fraud, AdSense customers can specify the pages on which advertisements should be shown. AdSense then ignores clicks from pages other than those specified.

Have any quarries? Or want to share something more. You are free to write it down.