Understanding Google Adsense and Adwords Programme
The AdSense movement is gaining momentum every day. The driving force inthe Google AdSense system is Google’s AdWords ads. The AdSense programenables website owners to monetize their site and make additional income. The adsense is has been inmensly popular as it has been using the Best and very unique ad programme called Contextual Advertising .Google uses proprietary algorithms to determine the content on each page of your web site with an AdSense box. It will identify the AdWords ads that are contextually relevant to your website visitors based on the content of your site. The identified AdWords ads are then displayed in your AdSense box. The ads on your site are the same ads that appear on the right side of a Google search results page for a specific keyword.
Contextual advertising is the process of displaying ads on a web site that are targeted to the individuals visiting the specific web site. The Google contextual advertising system scans the content text on your web site for keywords on each web page with the AdSense box. Google will display ads on each web page based on what it believes is the keyword theme for that specific page
Adsense and Adwords relation
AdSense Program You need to apply and be accepted by Google before you can display the AdSense ads on your web site. They are very particular about the sites that are eligible and accepted. Google's name is on the ads and they cannot risk hurting the perceived value of the AdSense and AdWords programs.
Every webmaster with high-quality and focused web page content can monetize their knowledge and expertise by using AdSense. You need interesting and informative content on your site in order to bring free and targeted traffic to your web site and capitalize on the AdSense model. You can generate revenue on your AdSense website on a consistent basis if your web site has a focused theme with targeted traffic. It's a good idea to have multiple pages with rich content on various topics that are centered around the specific theme of your website. Google can then target relevant ads to display on each web page that contains the AdSense box.
AdWords ads are the source of all the AdSense income you are able to generate. As a result, you need to fully understand the AdWords system in order to appreciate how the AdSense system works. Google describes AdWords as "a quick and simple way to purchase highly targeted cost-per-click (CPC) advertising, regardless of your budget." These paid ads (sponsored links) are displayed by Google on the search engine results page along with the non-paid (natural results) for a given keyword search. In order to create a Google AdWords ad, it is necessary to specify what keyword or keyword phrase must be input by the visitor before your AdWords ad will be displayed. In addition, you need to set the maximum amount that you will pay to Google for each click on your AdWord.
Though in light of latest Click Fraud, the google has introduced 2 new algorithms namely Smart Pricing and Everflux algorithm to counter The click faud and pay high CPC only for Fair clicks. Apart from this Google now has a new strategy too for Adwords called Adwords ranking
AdWords Ranking Google will rank an AdWords ad based on the maximum CPC, the click through rate (CTR) and the relevancy of the ad text. Google prefers relevant and well-targeted AdWords ads. Google determines ad placement using the value formula: CPC x CTR. The ad is placed higher as the valuation rises. It's possible for an advertiser to have a high rank position with a low CPC if the CTR makes the value to Google higher than other ads with a higher CPC. Google requires a minimum CTR ( it is belived to be around 25%), while same for Adsense is 10%, thus google encashes atleast 15 % for every click on Adsense ad no matter if they are fraud or fair. In order toincrease the profit of the AdWords program value, The CTR of all AdWords ads are monitored by Google on a continuous basis. An under-performing AdWords ad may be disabled by Google if the CTR does not improve