What is AdSense?

AdSense is a wonderful advertising concept that was conceived by Google some time back. Though new advertising concepts keep coming up all the time, this one is something that is altogether different.

AdSense (Google’s advertising program) presents an earning opportunity to the website owners by allowing Google to post advertisements on their websites. These advertisements are either text advertisements or image based advertisements. Of course, the website owners need to enroll to the AdSense program through Google’s website (https://www.google.com/AdSense). Google AdSense program requires you (the website owner) to include a piece of code (a programming script) on your website. You can add this piece of code anywhere in the html code of your website i.e. depending on where you want to position the advertisements (however, there are certain rules that you must follow while pasting this scripting code).

This piece of code is what determines the structure of advertisements and their content (and this is what helps Google in floating the advertisements on your website). When people visit your website they are able to see these advertisements. Your earnings are based on how many Google Ads are displayed on your website and also based on how many times visitors to your website actually click on one of those Ads. The Google AdSense system calculates your revenue on per-click (CPC) and per-thousand-Ads-displayed (CPM) basis. The latter is also known as impressions.

For people who want to advertise their products and services through the Google AdSense system, it’s just a matter of signing up through Google Adwords program and letting Google know how much they want to spend towards advertising through Google AdSense. These businesses can specify the limit and Google AdSense system will accordingly serve their Ads so as to ensure that the specified limit is not crossed. Google AdSense increases the visibility of their business/ services and also increases traffic to their website; hence fulfilling their purpose of advertising.

Custom Search

AdSense Ads Can Be Hosted By Any Website

We all know that Google’s AdSense program is one of the most reputed internet advertising programs around. AdSense is one advertising program that brings a number of people (websites) into its fold as advertising media and hence helps them earn revenue (advertising revenue). These people are webmasters who own websites and it’s their websites that function as bill-boards and serve advertisements.

With Google AdSense program, any website can easily become a bill-board:

• No experience necessary: Google AdSense program offers earning opportunity to every webmaster. The only criterion is that you should have a website (and your website should be compliant to the AdSense program policies). You don’t need to know anything about advertising or advertising media etc. Just enroll with the Google AdSense program and Google will take care of designing the Ads and serving the relevant Ads on your website. So, no special designing skills or coding skills are required for getting enrolled and using Google AdSense program.
• No need to look for advertisers: When the commercial value of websites for advertising was recognized, webmasters started looking for increasing traffic to their websites in order to make their website worthy enough to attract advertisers. Even then, getting advertisers was not easy. So, they could not really derive any monetary benefits from the traffic to their website until an advertiser actually bought advertising space on their website. However, with Google AdSense program, webmasters start earning revenue from the day they join the Google AdSense program. As the traffic to their website increases, so does their revenue.
• No need for tracking revenue: Google AdSense program will also take the responsibility of tracking the revenue that you earn from serving the Ads on your website. You can just login to your Google AdSense account and check your earnings. Moreover, you have various reports and statistics available to you that you can use for enhancing the performance of your website on the Google AdSense program.

So, Google AdSense program has really made it easy to convert a website into revenue earning medium.

What makes Google AdSense system so special?

The basic arrangement in which Google AdSense system works is such that Google has the basic control over the Ads that are displayed on the websites subscribed to Google AdSense system. Of course, the website owner can customize how an Ad looks and also block/filter certain types of Ads on their website. The Ads that Google serves are ‘Senseful’ Ads (these Ads are actually relevant to the topics that the website discusses). This is something that is not found in other advertising programs. This creates a win-win situation for everyone.

The people who are visiting the website (that contains Google AdSense Ads) are doing so because they are interested in the product, service or topic that is discussed on that website. It would be of little use to them if you were to serve Ads that are not related to the topic in any way. On the other hand, Ads related to the topic of the website would really prove useful to the visitor. They might actually be interested in a product or service that is being advertised through Google AdSense Ads. So, website visitors get a richer experience due to AdSense program.

Website owners get revenue for displaying the Google AdSense Ads and for the clicks they receive on the Ads. So, they are happy too. As far as businesses and advertisers are concerned, they get a system (AdSense system) for targeted advertising that is both easy and economical to operate.

Moreover, Google AdSense Ads are presented in a much better way than the banner Ads or other types of Ads. Most of the Ads are simple text Ads that are clear and concise. The website owners find it easy and the advertisers find it easy too. Google AdSense is really one of the best advertising programs available today.

AdSense related terms that you should know

Here is the list of AdSense related terms that you should know for sure:

Page impression: A page impression is generally the same as a page view but the number of page impressions can sometimes be different than the page views. This happens when the page is viewed by a visitor but the AdSense code is not executed for some reason (which means that the Ads are not displayed to the visitor).

Ad unit impressions: Whenever you get page impressions, you also get Ad unit impressions. However, the ad unit impressions are dependent on the number of ad units you have on your page i.e. number of ad units that get executed when the page loads on user’s browser. Note that the link unit impressions are also counted as ad unit impressions.

Click: A click (for the purpose of AdSense) is recorded whenever a website visitor clicks on one of the AdSense Ads. Note that a click on a topic in a link unit is not considered as a click.

Click through rate: (for the purpose of AdSense), is the number of clicks received by an ad unit divided by the total number of ad unit impressions for that ad unit. So, a better CTR can mean more revenue for you.

Effective CPM: It is calculated as the cost per 1000 impressions. However, do not confuse effective CPM with your earnings. In fact, effective CPM is calculated by dividing your earnings by the number of page impressions and then multiplying the final figure by 1000. Effective CPM is generally used to compare various channels and determine which channels are more profitable for you.