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Google AdSense and AdWord revenue system of generating passive income stream while you enjoy life.

Updated on April 10, 2016
Google Basic Advertisement format
Google Basic Advertisement format

What is AdSense?

AdSense is an Internet advertising system managed by Google. Advertisers join Google's AdWords program and utilize it to make an advertisement, which is typically a short content business, a classified, that incorporates two short lines of content and a connection to a Web page, which could may also be a rich media format like an image or an embedded video.
For the most part, the advertisement looks something like this:

How it all works?

An advertiser chose his monthly budget for a campaign and sets a maximum bid which only gets deducted at the time his ad gets a click. This is known as cost-per-click (CPC).

The advertisers are provided with an option to select their preferred websites where they want to target their campaign. However, in practice they choose not to go for the specific websites but the specific keywords for which their ads are relevant. The bid price as well is an important factor for their ad placements. So they rely on google to research all the websites in its network and based on those website's niches and audience, google decides a relevant place to show the ad.

HTML/Javascript Sample Ad code

<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- hub page SEO -->
<ins class="adsbygoogle"
     style="display:block"
     data-ad-client="ca-pub-9492757425336379" <-- PUBLISHER ID
     data-ad-slot="9138742449"
     data-ad-format="link"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>

What is an ad code?

Publishers, having a fully approved AdSense account, are given a piece of code in the form of an HTML/Javascript, that they could paste inside their web pages. The look and feel of the advertisement is a publisher's choice and is given a set of options to choose various attributes like size, colour, type etc of the ad to be displayed. The ad code created contains such information alongwith the publisher's ID and a privacy information which restricts ads to be shown in pages that infringes google policies. The publisher ID is the key information which helps to show the earning's report and other analytics to the actual publisher account. Publisher ID is unique to every google AdSense publisher. Briefly, AdSense plays a middleman between the AdWord's advertisers and the publishers and the websites showing AdSense ads.

How Google Adsense show relevant Ads?

Google now have millions of publishers around the world and is serving its ads to every corner of the world where internet is established. That is a considerable measure of spots to serve those advertisements. But it's not the size that allures the advertisers but the innovation Google has shown in the coordination between the AdWords customers and the AdSense publishers. Google has achieved this standard through a mix of different criterions listed below:-

Web page Keywords:

Google AdSense bots crawls every web page carrying AdSense code and analyse keyword information accrued from it and identifies the keywords that matches with the AdWord advertiser before placing the ad impression their.

Search Keywords:

Google AdSense keeps track of the keywords used on the google search engine and show relevant ads on top and right side column of the search results.

User's search Behaviour:

Google AdSense makes use of cookies to analyse a user interests while surfing the web. A travel blog could show advertisements about sports shoes and equipments but if AdSense knows that the last 4-5 sites the user visited was about gadgets and gizmos then it might offer an ad about the latest smartphone in the market.

Price:

Price plays a crucial role in the placement of an advertiserment. Google sets an equation between the maximum cost-per-click (CPC) and click-through-rate (CTR) to decide the ad's priority for a specific ad space or even a website.

All these parameters are variables of a one single complex equation which is proprietary to Google. Google suggests good practices while dealing with AdSense and AdWords and does not spill the beans to it's secret making it nearly impossible to control the type of ads that appear on the web pages.

How much google AdSense program can pay you?

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 and bring in visitors can end up holding giant checks.

The calculations used to distribute the ads might be complex but the principle is simple enough. And it works. In the first quarter of 2013, Google reported revenues from its network alone — that’s publishers using AdSense — of $3.26 billion — 25 percent of the company’s total revenues. That means that just in January, February and March of 2013, Google would have paid out to its website publishers over $2 billion.

The advertisers are charged for each click accrued to their ad. A publisher receives 68% of this charged amount if the click is acknowledged from his webpage.

Google has paid billions to its publishers but not all of those are making lofty paychecks. And have many exceptions. AdSense optimization is the key point for success.

Markus Frind, the sole proprietor of a free dating site, Plenty of Fish, in 2006, declared his AdSense paycheck of more than $9 million, his two month's income.

Don't tell me the sky's the limit when there are footprints on the moon.

— Paul Brandt

What AdSense Is Not?

So AdSense is an advertising system. It’s a program that matches adverts submitted by advertisers to publishers who have signed up to receive them. It’s the matching technology that ensures users see ads they’re interested in that has made AdSense such a huge success.

But AdSense is open to everyone. Google will check a site that applies to join the AdSense program but as long your site isn’t pornographic, hateful, violent or generally nasty, Google will give you the chance to earn from AdSense.

And that’s the best description of AdSense: it’s an opportunity.

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