Google's AdSense is programming that "senses" the content of a page or search. It finds keywords on a web page or in a search phrase to determine the subject of the content. It does this by either "reading" the page, or taking a look at the search term that was typed into Google Search. It can "Sense" which ads in the system are relevant to the content or search and display them - thus: "AdSense."
Before ads on a page are displayed, AdSense searches its database of advertisers and finds ads that are associated with keywords on the page or in the search. Now AdSense needs to decide which of the thousands of ads vying for position are actually displayed. To make this decision, AsSense looks at the advertiser's bids for the relevant keywords. The advertisers that have a combination of the highest bid, keyword relevance and best click through get displayed first.
Google tracks clicks on ads and advertisers pay Google the bid price for each click. When the AdSense ad is on someone's web page, Google pays the website owner a portion of the payment for each click. The term "monetizing" your site refers to taking your existing site and placing ads like AdSense on it to make money (or finding other way to make money with websites). If you get 10,000 visitors and 10% of them click an ad that pays you, theoretically, $0.75 per click, you just made $750! Not bad for just copying some AdSense code (which Google provides) into your popular website's HTML (if your site is not popular, learn about SEO - Search Engine Optimization - from sites like AcmeWebResources).
AdWords - The Yang:
The other side to AdSense is AdWords. AdSense ads have lists of relevant keywords associated with them. Each keyword is bid on by the advertisers for placement in the results pages and on web sites around the world. The words that will prompt a display of an advertiser's ad are bid on by the advertiser. When an ad matches the words on a page, the ads are displayed; thus: AdWords. AdWords is the system in Google that is used to place ads that display in AdSense.
You can enroll in AdWords to pay for AdSense ads to drive traffic to your site. The first step is to sign up with Google. The next step is to associate keywords to associate with your site.
The idea is to drive traffic to your site through the use of relevant ads. The more relevant the ad to your content, the more targeted your traffic will be. Compose your articles around your list of keywords. Next, write an ad based on the keywords and assign keywords to the ad. You will bid on the keywords at the time you associate keywords with the ad. If one of your keywords is searched for or relevant to a site, and you have a good bid and relevant ad, your AdWord ad will be displayed. Only when someone clicks your ad are you charged by Google.
The more popular keywords are wanted by many competitors, so the prices per click can get pretty high. It is not uncommon for a click to cost $5 or even $10. If you have 10,000 ad clicks, after you account for your conversion rate (the rate that you convert visitors into buyers) you better be sure you are making more than the ad click costs! But it should never break your bank because you can set the bid limits and the monthly budget.
What if you can't afford $5.00 per click? Since the more popular keywords are so expensive, it is best to bid on less popular keywords because the cost per click is lower. Google presently has a minimum bid of $0.05 per click. If you can get those, you can reduce your advertising budget.
A popular site can make a lot of money, however, a lot of money and time can be wasted. To avoid waste, you have to learn as much as possible and get the right tools to do the research.
They are the fine men and women who are willing to part with some coin of the realm every time a visitor to your web site chooses to click on an AdSense ad. Google grabs the cash from the AdWords' member's account, keeps some of it for themselves, and gives the rest to you. How much they keep and how much give away is a State secret, but who cares, just as long as we're getting ours each month.
How AdWords Works
AdWords provides pay-per-click advertising to merchants who are willing to shell out anywhere from a minimum 05 .05 per click all the way up to a maximum of $100 per click. Can you imagine anyone paying $100 just to have someone click on an ad?
Anyway, the advertiser joins the AdWords program and gets a control panel similar to the one that we AdSense users get. They can write their ads, pick their keywords, and establish an advertising budget. They get tools to track performance as well as to help them pick keywords. There are no monthly minimum spends required and they can turn their ads on and off at will.
Once an advertiser is happy with their ad, it gets released to the network and shows up on web sites like yours and mine. That's if the keywords on your site match the keyword requirements of the brand spanking new ad, of course.
They can't ?buy? their way to the top
Google doesn't simply push the people with the highest paying ads to the top of the SERP (Search Engine Results Page). They use a rather fair methodology that takes into consideration not only the maximum CPC (cost per click), but also includes a secret recipe for determining an ad's placement based upon the number of clicks the ad receives. So, at least in theory, an ad paying .05 per click could rise above one paying $5.00 per click if it's more popular with Google's audience.
I say ?in theory? because if the owner of the $5 ad is paying attention then he or she will see that they are being bested by a lowly nickel ad and do some serious rewriting to get back up to the top where they belong.
Personally, I'm not sure that I have the guts to invest a lot of money into hoping that people who click on my ad will actually buy something, since I still have to pay Google whether I make a sale or not. But, as a dedicated AdSense user, I'm sure glad that my AdWords brothers and sisters have more nerve than I do. And you should be thankful as well.
Both Mock Robert & Naresh Dogra are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mock Robert has sinced written about articles on various topics from Adsense, Small Business and Adsense. Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to Google Adsense, do please browse for more information at our websites:. Mock Robert's top article generates over 5400 views. to your Favourites.
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