AdSense Revenue Exposed
used to align ad content with page content Google automatically selects and
displays ads for your website that are likely to generate the highest revenue for
AdSense is an application of AdWords beyond Google.com
Making “sense” of AdSense means understanding that it is really an offshoot of
the older Google model, AdWords. But they are not the same thing.
If you have ever searched on Google, you have seen AdWords.
Google AdWords are the small text ads that are displayed on the side of the
search results in Google. These ads are contextual of course – in this case the
context is the search terms you entered. The ads will be served based on what
you’re looking for. So, if you do a search on “printing services” you will get ads for
printing services along with your search results!
How does this generate money for Google and the advertisers?
Google AdWords works on a model known as pay-per-click. When someone
clicks on an AdWords ad, the advertiser of that ad has to pay Google a certain
amount. It’s easy to track and fully automated.
We say “certain amount” because that amount is different all the time and is
subject to market forces – in this case, bidding. Something has to determine the
placement of those ads, and what determines it is how much the advertiser offers
to pay per click. When you submit this kind of ad to Google, you submit it with a
bid – which is compared to other bids for similar keywords. It’s an auction style
© Copyright 2006 by Michael Rasmussen and Jason Tarasi - All Rights Reserved.