Google Adsense is a unique program that can produce a lot of revenues over time if you are patient. To understand the basics of Google Adsense, you first have to understand Google Adwords. Adwords is a program where people can bid per click to buy space on platforms Google supports with advertisements. This includes the ads you see on the top and down the right column of results when you search on Google.
Adsense is the result of a crafty little idea wherein Google essentially wanted to maximize distribution of Adwords. With Adsense, Google took the unique approach of letting independent sites place certain types of Adwords advertisements on their pages. This type of advertising is known within the Adwords platform as contextual advertising and advertisers can opt out of it. Most do not.
The beauty of Google Adsense is it creates additional revenue sources for sites. For instance, lets assume someone bids 60 cents in Adwords for the placement of their ads. A site then shows those ads through the Adsense program. When an ad is clicked by a person on that site, Google charges the advertiser and splits the money with the site in question. The exact amount of the split is not provided by Google, but is known to reflect the quality of traffic, click through rates and other aspects.
Thursday, January 17, 2008
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