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Google Adsense – The revenue builder of bloggers

Daily Cash

What is Google Adsense ?

Google AdSense is run by Google that allows webmasters of content sites or blogs to serve automatic text, image, video, or interactive media advertisements, that are targeted to site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. In the first quarter of 2014, Google earned US $3.4 billion ($13.6 billion annualized), or 22% of total revenue, through Google AdSense.

Google Adsense

Google uses its Internet search technology to serve advertisements based on website content, the user’s geographical location, and other factors. Those wanting to advertise with Google’s targeted advertisement system may enroll through Google AdWords. AdSense has become one of the popular programs that specializes in creating and placing banner advertisements on a website, because the advertisements are less intrusive and the content of the advertisements is often relevant to the website.

Many websites use AdSense to monetize their content, it is the most popular advertising network. AdSense has been particularly important for delivering advertising revenue to small websites that do not have the resources for developing advertising sales programs and sales people to generate revenue with. To display contextually relevant advertisements on a website, webmasters place a brief Javascript code on the websites’ pages. Websites that are content-rich have been very successful with this advertising program, as noted in a number of publisher case studies on the AdSense website. AdSense publishers may only place up to three link units on a page, in addition to the three standard ad units, and two search boxes. This restriction is not applicable for premium publishers who work directly with account managers at Google.

Some webmasters put significant effort into maximizing their own AdSense income. They do this in three ways:

  1. They use a wide range oftraffic-generating techniques, including but not limited to online advertising.
  2. They build valuable content on their websites that attracts AdSense advertisements, which pay out the most when they are clicked.
  3. They use text content on their websites that encourages visitors to click on advertisements. Note that Google prohibits webmasters from using phrases like “Click on my AdSense ads” to increase click rates. The phrases accepted are “Sponsored Links” and “Advertisements”.

The source of all AdSense income is the AdWords program, which in turn has a complex pricing model. AdSense commands an advertiser to submit a sealed bid (i.e., a bid not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid. Google currently shares 68% of revenue generated by AdSense with content network partners, and 51% of revenue generated by AdSense with AdSense for Search partners.

Types of Google Adsense

AdSense for Content

The content-based adverts can be targeted for interest or context. The targeting can be CPC (click) or CPM (impression) based. There’s no significant difference between CPC and CPM earnings, however CPC ads are more common. There are various ad sizes available for content ads. The ads can be simple text, image, animated image, flash, video, or rich media ads. At most ad sizes, users can change whether to show both text and multimedia ads or just one of them. As of November 2012, a grey arrow appears beneath AdSense text ads for easier identification.

AdSense for Search

AdSense for search allows publisher to display ads relating to search terms on their site and receive 51% of the revenue generated from those ads.AdSense custom search ads can be displayed either alongside the results from an AdSense Custom Search Engine or alongside internal search results through the use of Custom Search Ads. Custom Search Ads are only available to white-listed publishers.

Although the revenue share from AdSense for Search (51%) is lower than from AdSense for Content (68%) higher returns can be achieved due to the potential for higher Click Through Rates.

AdSense for video

AdSense for video allows publishers with video content to generate revenue using ad placements from Google’s extensive advertising network. The publisher is able to decide what type of ads are shown against their video inventory. Formats available include linear video ads (pre-roll or post-roll), overlay ads that display AdSense text and display ads over the video content, and the TrueView format. Publishers can also display companion ads – display ads that run alongside video content outside the player. AdSense for video is for publishers running video content within a player and not for YouTube publishers.

AdSense for domains

AdSense for domains allows advertisements to be placed on domain names that have not been developed. This offers domain name owners a way to monetize domain names that are otherwise dormant or not in use. AdSense for domains is currently being offered to all AdSense publishers, but it wasn’t always available to all.

AdSense for Feeds

In May 2005, Google announced a limited-participation beta version of AdSense for Feeds, a version of AdSense that runs on RSS and Atom feeds that have more than 100 active subscribers. According to the Official Google Blog, “advertisers have their ads placed in the most appropriate feed articles; publishers are paid for their original content; readers see relevant advertising—and in the long run, more quality feeds to choose from.”

AdSense for Feeds works by inserting images into a feed. When the image is displayed by a RSS reader or Web browser, Google writes the advertising content into the image that it returns. The advertisement content is chosen based on the content of the feed surrounding the image. When the user clicks the image, he or she is redirected to the advertiser’s website in the same way as regular AdSense advertisements.

AdSense for Feeds remained in its beta state until August 15, 2008, when it became available to all AdSense users. On December 3, 2012, Google discontinued AdSense For Feeds program.

How AdSense works

  • The webmaster inserts the AdSenseJavaScript code into a webpage.
  • Each time this page is visited, the JavaScript code uses inline JSON to display content fetched from Google’s servers.
  • For contextual advertisements, Google’s servers use a cache of the page created by its Mediabot crawler 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.

You can find out complete adsense guide to make money other than the list of top indian bloggers who make money with adsense in here but remember that it is good for blogs only & true content rich blogs that are updated on a consistent basis, however there are some other marketing strategies also that will be explained in detail in our other posts.

Also Read: 6 steps to increase your adsense earnings

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