Minggu, 12 Juni 2011

What is AdSense?

AdSense is an Internet advertising system run by Google. It’s the flipside of
the two-headed Google advertising coin. Advertisers sign up to Google’s
AdWords program and use the system to create an ad. That ad is usually a
short text commercial, like a classified, that includes a headline, two short
lines of text and a link to a Web page. It might also be in a rich media format
such as graphic image or a video।
The advertiser sets a monthly budget and decides the maximum amount that
they’re willing to pay each time someone clicks on their ad. If no one clicks
on their ads, they don’t pay.
The advertisers though don’t usually choose the sites that those ads are
going to appear on. It’s an option, but most advertisers don’t take it,
preferring instead to influence placement generally through the use of
keywords and bid price.
They rely on Google to look at all the relevant websites in its AdWords
content network and decide which are the best sites to run their ads.
That’s where AdSense, the other side of the coin, comes into play. Publishers
sign up to AdSense and receive a code that they paste onto their Web pages.
That code communicates with the Publisher's account to show the type of ad
they've chosen to display, filters out the ads they don't wish to display, and
an alllows AdSense to keep track of impressions, clicks and earnings, among
other things.
But the most important task that the AdSense code does is to tell the
AdSense system to place an ad in that spot.
AdSense takes the ads that it’s received from AdWords’ advertisers, and
distributes them among the publishers and websites that have signed up to
AdSense. Google is pretty secretive about the number of publishers that
AdSense serves but in a blog post in 2010, the company mentioned a figure
of over one million. Consider each publisher has multiple pages and sites,
and that’s a lot of places to serve those ads.
What makes AdSense really special though isn’t just its size — which helps
make it attractive to advertisers. It’s the matching technology.
Google matches its AdWords ads to its AdSense publishers through a
combination of different criteria. The keywords the advertiser has इन्क्लुदेद
with their ads will be one criterion. AdSense “reads” each Web page in its
content network — the pages that carry AdSense’s code — and matches the
keywords on those pages with the keywords supplied by AdWords’
advertisers. It also matches the ads to the keywords entered into the Google
search engine, posting the ads next to the search results.
User behavior is another criterion. A page about astronomy, for example,
could show ads for books and telescopes but if AdSense can see that the last
three sites the user visited were about astrology, then it might offer an ad for
astrology charts as well.
And price will be a factor, too. AdSense multiplies the maximum cost-perclick
set by the advertiser with a score based on the ad’s click rate to
determine the order in which ads appear in a unit and, in part, on which sites
they appear.
Exactly how AdSense makes all these calculations is complex stuff, and
Google doesn’t explain exactly how it does everything. As we’ll see, it is
possible to influence the ads that appear on your Web pages — and it’s
important to use that influence — but for now imagine AdWords as a funnel
into which advertisers pour their ads, and AdSense as the tube through
which Google directs the flow outwards onto Web pages.
Once the ads are on the site, Google charges the advertiser for each click an
ad receives. The company passes 68 percent of that revenue to the
publisher, keeping 32 percent for itself.
The calculations used to distribute the ads might be complex but the principle
is simple enough. And it works. In the third quarter of 2010, Google reported
revenues from AdSense alone of $2.2 billion — 30 percent of the company’s
total revenues.
That means that just in July, August and September of 2010, Google paid out
to its website publishers a total of $1.5 billion.
Clearly, not all of those publishers are making a lot of money. But many are.
Google doesn’t cap the amounts that it can pay its publishers so those
publishers who know how to optimize their AdSense units, produce content
that people want to read or use and bring in visitors can end up holding giant
Back in 2006, Markus Frind, owner of PlentyofFish.com, a free dating site,
showed off a check that he’d received from Google for $901,733.85. That
check represented just two months’ income.

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