The position of the AdWords ads is based on the bidding amount of keywords of an ad. Obviously, the higher the bid, the higher the position the bid buys you. For instance, if the highest bid for the keywords "internet marketing" is 80 cents per click, you can get top position by bidding 90 cents. Then every time someone clicks on your ad, Google would charge you 90 cents, and you would retain the Top position until someone else bids more for the same search word placement.
Google AdSense, as stated earlier, is an extension of Google AdWords. Let takes the AdWords concept and moves it off of Google's search page and onto thousands of other web pages. The ads that are displayed on the websites are Google AdWords ads. let’s good for the advertiser, who gets more and broader displays, for Google, who charge more for this program, for you, who will make money from the clickthroughs on your pages, and also for the consumer, who will see cool ads for stuff they are probably interested in!
So how exactly are you making money from all this? You earn a share of the pay-per-click amount, every time a visitor clicks on the ad. So you just need to get ads on your site…
How the Ads Get On Your Site
Once you join the AdSense program - and Google approves your site or sites, which we'll cover in detail shortly - the actual process of displaying ads on your website is extremely simple. You are provided with a small HTML script, which you can paste anywhere on your webpage. You may paste this code any number of times and on multiple pages, and watch the ads get served! Google automatically places AdWords ads that are most relevant, from its extensive advertiser base. Google employs various sophisticated algorithms to determine the relevancy of the ads to your content.
Before we get into how Google assesses sites, and whether a few or many placements of that magic script will deliver optimum results, let's review the
Advantages of AdSense.
Advantages of the Google AdSense system
Google AdSense is simple to use and manage. Once approved, displaying ads on your webpage does not take time and requires minimal technical knowledge. Google AdSense is very smart about ad selection. The ads that are displayed are only those that are relevant to your content, and Google has strict quality control on the general quality of the ads.
Google AdSense uses text-only ads. Far from being low-tech, text ads are more effective than flashy ads. The click through rate of text ads is proven to be higher than that of animated ads! More clicks equals more money, and text ads equals more clicks. Also…text ads are very "low weight" and very fast loading. The AdSense program will not slow your website, or your visitors, down. You can also Use graphic ads.
Google AdSense programs: Choose your weapon(s)!
Google currently (mid 2005) offers three programs: AdSense for Content, AdSense for Search, and Premium AdSense.
AdSense for Content
AdSense for Content is the main AdSense program - contextually targeted ads are displayed on your webpage, and you get paid for every click. These ads are specifically targeted to the content of your webpage. Consequently, if you change the content of your page, the ads that are displayed would also change. AdSense allows you good control over what ads get served, since there might be some obvious problems if it didn't. These include:
Blocking Ads - you choose
While the ad selection is automatic, you can block unwanted ads - such as those from your competitors. You just tell Google which companies to block from your sites.
Reviewing and filtering Ads - semi-automatic
Google has its own strict policies for ad content (no profanity, no racial discrimination, etc.). These are filtered out automatically from your point of view. Additionally, you can choose to block additional content through custom filters. This is slightly different than blocking an advertiser, since with this method an advertiser you generally allow may submit ads that would individually be filtered out.
Allowing the publisher to select an ad
In the rare case where Google's content engines can't make a clear match of ads to pages, they will let you pick which ads you want served. If you don't pick, you'll get public service spots.
The look-and-feel of Ads can be customized
Ads shouldn't look out of place or be jarring on your website. Google allows you to customize colors and layout. You can choose options provided or have your own custom layout and color applied to the ads. The advertisers have no control over this; as the material appears on your site, you can and should select how it looks.
Tools for analysis
Tracking and analyzing the performance of any marketing campaign is critical. Google AdSense provides a range of comprehensive online reports that allow you to monitor and analyze your earnings as well as the performance of ads by