Some information on how AdSense works:
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You sign up for AdSense with Google, and, if you are accepted, Google will start placing ads on your web pages.
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If someone on your site sees an ad and clicks on it they leave your site.
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Google charges the advertiser for the click and shares this money with you.
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The Ads you get on your web pages are relevant to your visitors - a process that happens automatically.
The AdSense program is a lot more complicated than outlined here but this gives you a quick overview and even though AdSense has developed massively since it was launched it remains easy to use and it is a remarkably simple way of making money with your website or even with your blog. You don't need to be a sophisticated web marketer to start earning money.
So how much money can you make with AdSense?
The amount you can earn per click varies enormously from a few cents to many dollars. Get your AdSense participation right and you can make several dollars a click! We will look at why different ads are worth different amounts later in this course.
The beauty of the system is that once you've set it up, it just carries on making money for your automatically and, as you'll see later on, you can start very quickly without spending any money on a website too if you haven't already got one.
AdSense is in effect an affiliate program for Google’s AdWords ads: instead of Google selling space on its search results pages (see Sponsored Ads when you next do a search), it sells space on your web pages for you.
So it is important to understand the AdWords system (which in any case is an essential internet skill) and not just because every single cent of the money you earn from AdSense comes from AdWords.
Google AdWords
Google AdWords are small text-only ads that often appear on the right hand side or top of Google’s search results page when you do a search.
They are extraordinarily powerful - much more so than you’d think at first sight - for 4 reasons.
They are 100% targeted: the advertiser chooses which keywords have to be entered before their ad is shown. This means that you can make your ad appear only in front of people actively looking for information about a topic.
You sell binoculars?
Then you can set up your AdWords ads so that they show up only when someone enters "Binoculars" into Google’s search box. You can also restrict your ad coverage to specific countries or even cities so you can focus your advertising budget geographically too.
If you wanted, you could decide only to advertise your binoculars to people living in Western Samoa even if you lived in Montana!
You only pay for click throughs. If no one clicks on your ad you don’t pay anything.
The amount you pay depends on 2 factors. The amount you bid for the keyword that triggered the display of your ad, and the success your ad has in attracting clicks.
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The more you bid for a keyword to trigger the display of your ad, the higher it will rank on the page when that keyword is entered by someone.
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The more your ad attracts clicks, the higher it will rank on the page too. (What this system does is move popular ads to the top of the page and thus it automatically makes sure that people tend to see the ads that they find most interesting.)
Google also gives advertisers incredibly detailed near real-time campaign data so you can monitor and adjust your ads without wasting much money. Small changes in your ad, including Capitalising the first letter of some words, can have a Big Impact on your click through rates which can help reduce your click costs.
So where does AdSense come in this?
Well, Google has taken the excellent AdWords program and extended it to provide ads on other sites like yours and mine and called this service "AdSense". That's all.
An AdWords ad on your site is an AdSense ad. It was designed by an AdWords advertiser (of whom there are many hundreds of thousands if not millions now) and these advertisers bid to get their ads on sites around the internet.
Key distinction
However, AdSense differs from AdWords in that Google, instead of looking at the search terms entered into its search box to determine what ads to show, looks instead at what keywords you have on your site.
Example
If you have a page on your site all about viral marketing, AdSense technology determines that it would be an appropriate place to post AdWords ads about viral marketing and related products.
This technology is called "content-targeting" and it is entirely automatic which means that once you've started to use AdSense you don't need to worry about getting the right sort of ads on your site - Google does this for you.
How you make money with AdSense
We’ve been over the basic money-making process: people click on ads on your site and Google shares the income with you. Maximizing your income is much harder and it raises what I call the content dilemma which we'll explore later too:
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Is your site designed to earn AdSense revenue or is its main objective something else?
I hope some of this information helps .
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