AdSense is a free, simple way to earn money by displaying targeted ads next to your online content. With AdSense, you can show relevant and engaging ads to your site visitors and even customize the look and feel of ads to match your website.
Google AdSense is a free, simple way for website publishers of all sizes to earn money by displaying targeted Google ads on their websites.
Google uses its Internet search technology to serve advertisements based on website content, the user’s geographical location, and other factors. Those wanting to advertise with Google’s targeted advertisement system may enroll through Google AdWords. AdSense has become one of the popular programs that specializes in creating and placing banner advertisements on a website, because the advertisements are less intrusive and the content of the advertisements is often relevant to the website.
How AdSense works
- For contextual advertisements, Google’s servers use a cache of the page created by its Mediabot crawler to determine a set of high-value keywords. If keywords have been cached already, advertisements are served for those keywords based on the AdWords bidding system. (More details are described in the AdSense patent.)
- For site-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements, and pays based on cost per mille (CPM), or the price advertisers choose to pay for every thousand advertisements displayed.
- For referrals, Google adds money to the advertiser’s account when visitors either download the referred software or subscribe to the referred service. The referral program was retired in August 2008.
- Search advertisements are added to the list of results after the visitor performs a search.
Some webmasters put significant effort into maximizing their own AdSense income. They do this in three ways:
- They use a wide range of traffic-generating techniques, including but not limited to online advertising.
- They build valuable content on their websites that attracts AdSense advertisements, which pay out the most when they are clicked.
- They use text content on their websites that encourages visitors to click on advertisements. Note that Google prohibits webmasters from using phrases like “Click on my AdSense ads” to increase click rates. The phrases accepted are “Sponsored Links” and “Advertisements”.
The source of all AdSense income is the AdWords program, which in turn has a complex pricing model based on a Vickrey second price auction. AdSense commands an advertiser to submit a sealed bid (i.e., a bid not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid. Google currently shares 68% of revenue generated by AdSense with content network partners, and 51% of revenue generated by AdSense with AdSense for Search partners.
On June 18, 2015 Google announced rebranding of Adsense with a new Logo.
AdSense for Content
The content-based adverts can be targeted for interest or context. The targeting can be CPC (click) or CPM (impression) based. There’s no significant difference between CPC and CPM earnings, however CPC ads are more common. There are various ad sizes available for content ads. The ads can be simple text, image, animated image, flash, video, or rich media ads. At most ad sizes, users can change whether to show both text and multimedia ads or just one of them. As of November 2012, a grey arrow appears beneath AdSense text ads for easier identification.
AdSense for Search
AdSense for search allows publisher to display ads relating to search terms on their site and receive 51% of the revenue generated from those ads. AdSense custom search ads can be displayed either alongside the results from an AdSense Custom Search Engine or alongside internal search results through the use of Custom Search Ads. Custom Search Ads are only available to white-listed publishers.
Although the revenue share from AdSense for Search (51%) is lower than from AdSense for Content (68%) higher returns can be achieved due to the potential for higher Click Through Rates.
AdSense for video
AdSense for video allows publishers with video content to generate revenue using ad placements from Google’s extensive advertising network. The publisher is able to decide what type of ads are shown against their video inventory. Formats available include linear video ads (pre-roll or post-roll), overlay ads that display AdSense text and display ads over the video content, and the TrueView format. Publishers can also display companion ads – display ads that run alongside video content outside the player. AdSense for video is for publishers running video content within a player and not for YouTube publishers.
AdSense for mobile content
AdSense for domains
AdSense for domains allows advertisements to be placed on domain names that have not been developed. This offers domain name owners a way to monetize domain names that are otherwise dormant or not in use. AdSense for domains is currently being offered to all AdSense publishers, but it wasn’t always available to all.
On December 12, 2008, TechCrunch reported that AdSense for Domains is available for all US publishers.
On February 22, 2012, Google announced that it was shutting down its Hosted AdSense for Domains program.
AdSense for Feeds
In May 2005, Google announced a limited-participation beta version of AdSense for Feeds, a version of AdSense that runs on RSS and Atom feeds that have more than 100 active subscribers. According to the Official Google Blog, “advertisers have their ads placed in the most appropriate feed articles; publishers are paid for their original content; readers see relevant advertising—and in the long run, more quality feeds to choose from.”
AdSense for Feeds works by inserting images into a feed. When the image is displayed by a RSS reader or Web browser, Google writes the advertising content into the image that it returns. The advertisement content is chosen based on the content of the feed surrounding the image. When the user clicks the image, he or she is redirected to the advertiser’s website in the same way as regular AdSense advertisements.
AdSense for Feeds remained in its beta state until August 15, 2008, when it became available to all AdSense users. On December 3, 2012, Google discontinued AdSense For Feeds program.