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Adsense+explained2 Adsense+explained2 Document Transcript

  • This ebook is provided by Ways To Make Money youve never heard of Adsense then youre probably new to Internet Marketing &online advertising. Many marketers made a fortune with Adsense years ago butGoogle updates wiped out peoples Adsense online real estate empires.This guide will give you the basics & introduction to Adsense. For readers who arefamiliar with Adsense or have used it in the past, this guide will give you the latestnews & what it means for your Internet businesses.What is Google AdSense?AdSense is an ad serving program developed by Google that enables website ownersto easily put up ads on their websites and earn income from doing so. It has longbeen considered to be one of the most popular online advertising programs.Aside from being able to provide extra income to those who use it, Adsense hasbecome a very popular method of displaying ads among website owners due to itsless intrusive appearance (as compared with other banners) and its ability to display
  • advertisements that are, quite often, relevant to the host website. In addition,website owners are enabled to customize the look of the ads to some degree.The advertisements shown in an AdSense ad unit are administered by Google andare generated/displayed on a website based on the websites content and the usersgeographical location, among many other factors.The ads, in general, are divided into two types—cost-per-click (CPC) ads and cost-per-mille/thousand (CPM) ads.With CPC ads, publishers (or those who put Google ads on their pages/sites) earnwhenever visitors to their sites click on the ads. CPM ads, on the other hand,generate income for every thousand times an ad is displayed. Looking To Make Money Online? FREE 9-Part Video Course Reveals Simple Step By Step System To Make At Least $100 Per Day Online Working From Home! Subscribe now to gain instant access to this powerful 9-day video course! Go To: Brief History of Google AdSenseGoogles AdSense program is said to be derived from (or built on) a lexical databasecalled Wordnet developed by a team of researchers at Princeton University led byGeorge Miller. However, there are claims that Google copied its program from onethat was developed by Applied Semantics (formerly Oinigo, Inc.) which bears thesame AdSense name and is also a contextual ads program. Applied SemanticsAdSense, by the way, is powered by the companys patented CIRCA technologywhich is capable of understanding and extracting the key concepts from websitesand information repositories in a way that mimics human thought and enablesmore effective information retrieval.What complicates the story even more is that there are a handful of people (e.g.,Susan Wojcicki and Paul Buchheit) who have claimed (or referred to) as the onewho developed Googles program.Although the origins of Googles AdSense remains to be a cause for debate, theresno doubt that Applied Semantics was the originator of the name “AdSense”, a service
  • which it announced of in October 2002 and launched the following month.At around the same time, Google piloted its own contextual ads project on a fewsmall sites. The company went fully live with its project after a few months in March2003.In April 2003, Google acquired Applied Semantics along with its contextual adsproduct, AdSense. The acquisition was, according to Sergey Brin (Googles co-founder and president of Technology), to “enable Google to create new technologiesthat make online advertising more useful to users, publishers, and advertisersalike."Less than two months after the acquisition, in June 2003, Google renamed theircontext ads program to AdSense.Google AdWordsIn late 1999, hardly a year after the company was incorporated, Google startedtesting a program that would sell ads on a CPM basis (the popular and dominant admodel at the time). Surprisingly, instead of the popular banner ads, Google sold onlytext ads which were generated based on the search terms used by people when theysearch on Googles search engine.Advertisements began appearing on in January 2000... but the programwent off to a bad start... it wasnt making much money.Due to its disappointing performance, Google planned to turn all of its inventory overto DoubleClick (the largest banner ad business at the time). However, beforeanything could happen, the internet bubble burst (in Spring 2000) and took downwith it the online ad banner market.In the wake of the crash, Google introduced a self-serve model for buying text ads,and idea which they got from And, soon after, they introduced AdWords(August 2000).In February 2002, Google introduced a new version of AdWords which adopted thepay-per-click auction model. This model allowed advertisers to bid on how muchthey will pay for each click their ad gets.
  • However, unlike in other programs where advertisers can buy their way to the topof the listings (i.e., highest bid gets the most exposure), Google didnt allow such ontheirs. They took a different approach.Google employed the clickthrough rate into the ranking algorithm to measure anads relevance, forcing an economy of relevance and profit into the pay-per-clickmodel.Using the clickthrough rate as a factor in determining the ranking of ads, advertisersneed not shell out great sums of money to get to the top of the list. And this provedto be very popular among advertisers.Because of this, AdWords has since become Googles main source of revenue earningthe company an estimated $21 billion in 2008 alone. And, it wasnt only Google whobenefited...Advertisers were connecting with their customers and, with AdSense, publisherswere also raking it in... that is, until Google made some changes to their AdWordsprogram.Google changes that ended the Adsense gold rushOn November 22, 2005, Google started allowing advertisers to bid a separate pricefor ads that displayed in search results and ads that displayed on content partnerssites. This move drastically brought down the minimum bids for ads on contentpartners sites, pulling down with it the CPC.In mid-2006, Google introduced the “Quality Score “ and made it a factor indetermining the minimum bid required for ones ad to run. Google did thissupposedly to protect the trustworthiness and credibility of Google Ads, as well as toincrease the quality of the sites that Google presents in its ads.Quality score is determined by several factors, including clickthrough rate, ad copyrelevance, landing page quality, landing page load time, and geographical location,among others.Along with the enforcement of Quality Score, Google required (among other things)that landing pages be highly relevant to the ads and serve as an extension of the ads.If these conditions are not met, they are seen as low quality landing pages and, assuch, will result in the need to bid higher to compete in the auction.
  • These updates have caused many publishers and online marketers earnings toplummet overnight, some by as much as 98.85%.Dont get me wrong, theres no doubt you can still make money from Adsense, but donot expect to be able to live off of it. Its time has passed.Latest AdSense Update: Third-Party Ad ServingIn late August 2009, Google sent out an email announcing of its latest update forAdsense. According to Google, the update is designed to help AdSenseusers/publishers generate the maximum revenue from their ad units by allowingmultiple ad networks to show on their pages. This, in effect, will pit advertisers fromexternal Google-certified networks against AdWords advertisers in competing for adspace. And, the ad generating the highest revenue for publishers will get the primeadvertising real estate.When the new update takes effect, publishers will have control over which networksthey will allow to show ads on their pages. They may also choose not to accept anyads coming from the third-party networks.A copy of Googles email about the recent update is added below.From: GoogleSubject: Enabling multiple ad networks in AdSense to generate higher revenueHi,Were writing to let you know about an upcoming update in your AdSense account designed to help yougenerate the maximum revenue from your ad units. Youll soon be able to allow multiple ad networks to show onyour pages, which means that advertisers from external Google-certified networks will be able to compete withAdWords advertisers for your ad space.If youre unfamiliar with what ad networks are, theyre companies that partner with advertisers and publishers tobuy and sell ads on sites they dont own themselves, similar to AdSense. Ads from these networks will competewith Google ads to show on publisher sites, and the ad generating the highest revenue for publishers will bedisplayed.To ensure the quality of the ads appearing on your sites, were certifying all participating ad networks foradherence to our standards for user privacy, ad quality, and speed. Youll also have control over which networkscan show ads on your pages -- you can choose to opt out of receiving ads from specific networks, or all networkscompletely. This means you can continue to show ads from only AdWords advertisers if youd like.Finally, some ad networks use tools similar to Googles interest-based advertising to show more relevant ads tousers on the sites they visit. These ad networks wont be permitted to collect data from your site for the purposeof subsequent interest-based advertising, but well allow those who comply with user privacy guidelines to showads using these tools. Youll have the ability to opt out of showing ads based on user interests from these adnetworks, and weve changed our requirements for third-party ad serving to reflect this. More information is
  • available at .These new capabilities will automatically be enabled for your account, and youll see a new section in your AdReview Center where you can allow or block specific ad networks. Please note that well gradually be addingnew ad networks to AdSense accounts over the next few months, so you wont see any immediate impact onyour ads or your earnings.To learn more about this launch and managing the ad networks appearing on your pages, visit the AdSense HelpCenter at and watchour video demo at .Bonus MaterialHow To Triple Your Google AdSense EarningsOne tactic that can significantly increase ones Google AdSense earnings is by placingGoogle Ads (more specifically AdSense for feeds) after every post summary inhis/her sites feed.Adsense for feeds, as the name suggests, lets web publishers earn by allowing themto place targeted ads on their feeds. It works very much the same way as the rest ofthe Adsense program such that it delivers ads that are relevant to the content of thesite/feed as well as to the readers. And like other AdSense ads, feeds are paid eitherby click or by impression.But before putting this tactic into practice, it is advised that one must take intoconsideration the possibility of diverting traffic away from the site as a result ofvisitors clicking through the ads.One must also carefully study and weigh out the possible revenues that one can earnfrom having visitors click on the ads as compared to having visitors buying the sitespromoted products.With the aforementioned considerations, it is evident that this tactic is much moresuitable for marketers who are only starting out and who has not yet joined toomany programs.Although theres a possibility that seasoned marketers (who have fully-developedsites) will run the risk of losing revenues with this tactic, it is also possible that theywill increase their overall revenue.
  • Looking To Make Money Online?FREE 9-Part Video Course Reveals Simple Step By Step System To Make At Least $100 Per Day Online Working From Home! Subscribe now to gain instant access to this powerful 9-day video course! Go To: