Making sense of google adsense

Chapter 1: AdSense in Depth

The AdSense Options

Google AdSense comes in three incarnations and each is designed for a different purpose, these are; AdSense for content, AdSense for search, and Premium AdSense. Google AdSense is an easy program to apply for as there are no minimum traffic requirements. The important factor is the kind of content on the site. The content must be deemed as acceptable for Google to be willing for a site to display its ads. In addition, Google will only allow for a single ad per website, either a horizontal banner across the top of the site or a vertical column also known as a “skyscraper.” The good news is that you can have this service on any or all web pages you have with the same ad code and although only one ad will show at a time, there are a number of ads that will cycle on the page.

AdSense for Content

Google’s AdSense for content is the primary service of this kind. These advertisements are associated with the content found on the intended webpage, these ads are a source of income for which all you have to do is provide articles, or have good content on your webpage. You get paid for every time a person clicks on one of these ads, ads which are there strictly by the virtue of the content which your page contains and you get paid for providing these ads. Since the ads are aligned according to the content found, if the content of the page changes, the ads will change to match whatever content is found on that page. This process is automated but still allows a large measure of control over what advertisements will get served on your web page.

As the publisher of advertisements on your web page, you have the power to decide what ads you do not want. This makes good sense because it gives you ultimate control over what is advertised in association with your web page. For instance, you may not want to show ads for your competitors, in such a case you simply inform Google of which companies you do not want to be advertised on your site. A further level of control is having the ability to review ads and set filters. Google has its own set of guidelines for advertisement content, such as the use of language and discrimination. These ads are automatically filtered and will not show on your site. Beyond Google’s default filtering you can create your own site-specific filters. This offers a finer level of control besides just blocking an advertiser altogether. This allows you to show some of an advertiser’s content while blocking other ads, meaning ads can be allowed on an individual basis. Should a situation arise where Google’s content engines are not able to specify ads to websites, Google will allow you to decide which ads you want to show. If no selection is made then you will get public service ads in their place.

To ensure that ads displayed on the website look like they belong, you have the option to customize the displayed ads with color and layout. Some options will be provided, but you may also have your own custom layout and color scheme applied to the advertisements. Since the ads are showing on your webpage, the advertisers have no control over the appearance of their ad. You have ultimate control over the appearance of the ad, not just whether the ad appears or what kind of ads will show on your site. Knowing how effective the ads showing on your site are is crucial.

The AdSense service from Google includes an array of comprehensive reports that show your earnings and the performance of the ads according to various metrics, such as color, size, etc. This tool is invaluable as it allows you customize your site for maximum earning potential with the ads placed on the website.

AdSense for Search

This program affords visitors to your website a huge level of convenience by adding a Google Search box to the web page. Providing this option to visitors is a huge benefit to you as the publisher in the sense that a visitor would never have to leave your page to search the internet. This increases productivity for you by allowing the customer to stay on your site and be exposed to the ads shown there because you are hosting Google Search. When a visitor searches from your website, when the results page comes up, Google Ads are included in the results as always. If said visitor clicks on any of the ads that come up from the search they initiated from your website, you get paid for that as well. This opens up a huge potential for earning from ads that are not even displayed on the website.

Included with Google AdSense is the same suite of controls and options available with Google AdSense for Content. This suite of controls and options gives you the power to customize and filter ads, analyze and review income and effectiveness of ads showing on your page.

Google AdSense Premium Service

The Premium AdSense Service from Google expands upon the basic suite of controls and options available through the other services. Availability of the Premium service is based on eligibility of the website. To qualify for this service your site must be searching queried 5 million times a month, or your site must have a minimum of 20 million hits per month.

The Worth of AdSense

We have all heard the get rich quick schemes available on the internet. Google AdSense is not one of these. What Google AdSense has to offer is a way to generate a sizeable income with minimal effort. To say minimal effort one should not infer that there is no work to be done. With appropriate planning, you will make an added income off your already existing webpage using Google AdSense.

To know what AdSense can do four you, let’s take a look at what AdSense does. Every time an ad is clicked by a visitor to any site using this service, the host site receives a percentage of the amount Google is paid. The amount that you receive for each click on an ad on your site depends on a few factors. First is the amount the advertiser itself has established with Google. Second is the Payout Rate for each time an ad is clicked on Google, this also varies on a per case basis. What is known as the Clickthrough Rate is how many times an ad is clicked during a given timeframe divided by the number of times that ad is shown during the same timeframe? Web page traffic is the number of visitors to your site; and the rate of frequency for which particular ad is displayed on your site. To put these variables into some context let’s throw some numbers in the mix and see what AdSense generates in a single day.

If the Click through rate $.50, then the advertiser pays Google this amount every time their ad is clicked. Let’s assume the payout rate to be 50% of the Clickthrough rate, in this instance it would be $.25. So if the Clickthrough rate 5 out of 100, to be clear, this means that of the ad was displayed 100 times in the course of a day, 5 people clicked on it; this is represented as a clickthrough rate of 0.05. The webpage traffic is simply how many hits your site got this day; in this case, we will say 200. The frequency of the ad was 100, meaning this ad was shown 100 times on this day.

The formula works like this:
Revenue generated for a single day is equal to:
0.5 X 0.25 X 0.05 X 200 X100= $125.00

This amount represents what would be earned from this ad alone in the course of one day; the numbers represented in this example are purely for the sake of showing how the formula works and how all the variables are compiled. Nonetheless, let’s take this example to be the daily average and explode the amount on a monthly basis. Now we are looking a figure of $3,750. So if you take this some and think of what that means over a year, you see this add generates $45,000.

This ad alone, not considering what other ads show on your site can produce a sizeable income. Let’s snap back to reality and evaluate what you did to receive this income; you signed up with Google AdSense. Obviously, there were a few other preliminary steps, but really, the fact that you signed up for this service is what is padding your bank account. This should make it clear what Google AdSense can do for you, as it is already doing for so many others.

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