How To Earn From Google Adsense

What is Google Adsense?

Adsense is an advertising program run by Google that allows the businesses to run their advertisements on the websites of the publishers who participate in the program. Website owners can enroll in the Adsense program and opt to display the text, image and video ads on their websites that are related to the content of their websites. Google takes care of administering their ads and generate revenue for the publishers on either a per-click or per-thousand-impressions basis. Google utilizes its search technology to serve ads based on website content, the user's geographical location, and other factors. Those wanting to advertise with Google's targeted ad system may sign up through AdWords. AdSense has become a popular method of placing advertising on a website because the ads are less intrusive than most banners, and the content of the ads is often relevant to the website. When a user clicks on any of the Ads displayed on the publishers website, Google shares a certain percentage of the cost that the Advertiser pays for that click with the publisher. Currently, the AdSense uses JavaScript code to incorporate the advertisements into a participating site. If it is included on a site which has not yet been crawled by the Mediabot, it will temporarily display advertisements for charitable causes known as public service announcements (PSAs). Optionally the publisher can choose to diplay ads from a differnet webiste or simply to show a solid color if he don't want PSAs to show on his site. Many websites and blogs use AdSense to monetize their content and this caused the creation of millions of niche based websites that focus on a specific niche and attract the visitors and ads related to that niche. Web masters use several ways to monitise their websites and blogs. Some of them are: They use a wide range of traffic generating techniques including but not limited to online advertising. They build valuable content on their sites which attracts AdSense ads which pay out the most when they get clicked. They use various techniques on their websites that encourage clicks on ads. However, Google prohibits people from using phrases like "Click on my AdSense ads" to increase click rates. 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, in that it commands an advertiser to submit a sealed bid (not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid. Adsense for Search Adsense for Search is a companion to the regular AdSense program, that allows website owners to place Google search boxes on their pages. When a user searches the web or the site with the search box, Google shares any ad revenue it makes from those searches with the site owner. However, only if the ads on the page are clicked, the publisher is paid. Adsense does not pay publishers for mere searches.

How Google Adsense Works?

Google Adsense advertising system invloves three different kinds of people: Advertisers: Advertisers use Google Adwords program to advertise their Ads not only on the Google Search results, but also on the content pages of the external websites and blogs that participate in Google Adsense Program. They do this on either PPC (Pay-Per-Click) or CPM (Pay-Per-Thousand Impressions) basis. Advertisers can optionally select which websites they want their Ads to show on. Publishers or Web site owners: Website owners and Blog owners participate in Google Adsense using which they place the Ads served by Google on their content web pages. They do this by placing a Javascript provided by Google on their webpages or blogs. Website owners has the option to choose various formats, colors and a whole lot of customization options using which they can control and blend the Ads according to the look of their websites. Google Adsense program also provides various performance monitoring options (such as channels) for website owners to track and maximise the performance of Ads on their web sites. Website Visitors: When a visitor visits a Google Adsense Particepant's website, they see relavent Ads along side the content. If the visitor clicks on any of these Ads, Google shares an undisclosed percentage of the cost of that click with the website owner. Hence this is how we can summarise the process of how Adsense Program works: The website owner signs in to the program. Ads are placed on the website according to: AdSense™'s contextual selection and filtering criteria the publisher's options (the publisher gets to filter ads) the advertiser's option, in the case of impressions-based advertising (the advertiser can choose from a number of available sites) The publisher receives an undisclosed share of the revenue from the ads. AdSense is based on the PPC and CPM advertising payment models. Pay Per Click: AdSense PPC advertisments are text ads that appear on your website according to its contextual selection and filtering criteria. When a site visitor clicks on the ad, the advertiser is charged a small amount, of which Google keeps some and pays some to the website owner. Pay-Per-Thousand Impressions (CPM): AdSense CPM ads are text or image ads and are site-targeted. The advertiser pays each time his ad is displayed on a page (every time Google ad code is executed by a user's browser). The same, each time an impression is registered, a share of the money goes to the publisher. In this case the advertiser gets to choose the sites on which his ads will show. Here's how things are going to work behind the scenes: Google centralizes the advertisement through AdWords and uses a contextual targeting algorithm for their placement, that is, sorts them out so as to place them on sites with specific appropriate content. The strategy lies in the reasoning according to which surfers that visit a page might be interested in finding additional info or products on that particular topic. And it works if the website is good enough for the purpose. Hense by having an attractive website and keeping visitors interested so they feel the need to go further and find out more by clicking on the ads, a Website or Blog owner can benefit from the Google Adsense program.

 How much can I earn with Adsense?

The earnings from Adsense can range from a few cents a day from a single website to several thousands of dollars over a network of websites. The Adsense program itself has nothing to do with how much a publisher can make using Adsense. Its all about building quality websites that attracts visitors and trageted Ad market. Once you have got targeted traffic, you can monitise that traffic using Adsense. Building quality and focussed content which has some commercial market value and attracting targeted traffic to the sites you build are the keys of making money on web using Adsense.
So, here are a few things you need to learn to succeed with Adsense:

• Building quality content sites that focus on a specific niche that interestes the audiense of that niche.
• Finding right keywords to target the market and build websites suitbale for those markets. Keyword Research is an important skill
• Finding niche markets that has high demand and low supply.
• Search engine optimisation of your webpages is important to make your web pages rank well on search engines.
• Building links with similar suits will improve the page rank for your pages

How to Qualify for using Google Adsense?

Qualifying for Google Adsense represent an interesting matter, as the demands for acceptance a site are mostly common knowledge and are nothing extraordinary. To qualify for using Google Adsense in your website all you need is a decent website with atleast 10 to 15 web pages with qualifying content. Google specifies a list of topics for which they won't server Ads. Other than that there is no strict conditions such as how big the site should be and how much traffic should it attract. However a webmaster has to first understand Google's Terms of Service, in which Google outlines the Dos and Don'ts of using Adsense on your web site. The webmaster need to be very careful before applying to Adsense and make sure that his website or blog indeed qualifies for Google Adsense. It is very difficult and frustrating to get into the program or reapply to the program, if you are once rejected. So here we outline some of the things you need to keep in mind before approching Google for Adsense (and to get success out of it, ofcourse). Content You need to keep in mind that Google Adsense is there primarily for content-based sites. Websites that focus on pure product sales or only for Ads kinds of sites may not be proper for Adsense. Moreover, all you are promoting is your own product(s), then hosting Adsense might work against you, as the Ads that show up will be direct competitors. So it makes no sense in such cases. If you are building content that is usful for general website visitors, or content focussed on specific topic (niche sites) then you will have good chance of succeding with Adsense. Forums & Blogs Some blogs or forums may not be accepted. Still, if the forum or blog is information-rich then they are not only accepted, but may work really well with AdSense for their owners. Google started with not accepting this type of sites. But it turned out that, in some cases, they represent exactly what users are looking for: Honest, useful, unbiased information, where anybody can express just what they truly think, and right when they feel the need to do it. On condition they are not artificially created for other purpose than that of letting their users interact in the world of ideas and benefit from each other's experience and knowledge. Image Galleries Image sites may host AdSense if the images are accompanied by as little as some brief explanatory lines, relevant for the Mediabot, the Googles Media crawler. But these may not yield good results compared to content sites. Chat Sites These are not suitable for Google Adsense and thay may not even allow these kind of small talk sites.

What percentage does Google pay to its Publishers?

What percentage of Ad revenue does Google Adsense program pay to its Publishers? This is one of the most troubling and unanswered questions for webmasters. Google does not disclose how much percentage they pay to the publishers and it is perhaps one of the well guardered secrets. Here we try to bring out what we know and what we learned from peers about Googles payting policies and hope to shed light on some of the very interesting areas. Dispite the secrecy behind this payment percentage issue, Adsense by far exceeds the over all payout performance compared to many other advertising options on most content sites. To keep the publishers (website owners) happy with Adsense is important for Google to keep Adsense as the primary advertisement source for Publishers and to the overall success of the program. So it seems that Google does payout a significant portion of the Ad revenue through Adsense program back to the publishers. According to Googles SEC filing and an article about Digital Point published in Newyork Times (link here) we have reason to believe that Google pays some where between 70 to 80% of the Ad Revenue to publishers. Why Google maintains Secrecy ? The possible reasons for Google's secrecy on payments can be: It's a program safety policy. I mean, if you think about it, if Google were to openly announce the share, then the competitors can offer higher percentages to Publishers and this could result in pricing wars. The complexity of the process thay follow to personalise and customize for each case is hard to explain. Besides, its not static and fixed and same for all sites. And they can modify it whenever, however they think is appropriate without having to explain and ground their action. Knowing who makes what would be a bone of contention for publishers. Parameters for Calculating AdSense Payout Basically, what we do know for sure is that Google receives the money from the advertisers any time an impression is registered or a visitor clicks on an AdSense advertisment. Then the revenue is shared with the publishers. It works like this: the cost of the click is established by the “smart pricing” system — this is the price advertisers pay; an undisclosed percentage is applied to this amount, that results into the shares for the publisher and for Google™. Smart Pricing Lets examine what this Smart Pricing is and how publishers who provide solid and focussed content can make use of it to their advantage: Bidding: Pricing starts from the supply and demand ratio, settled in advertisers' bidding. (So far, not much we, as publishers, can do, except maybe for making your best keyword pick.) The price thus established is usually the highest possible, for there follow other factors that influence the CPC. Potential Coversion Rate : The result is then modified according to the click's conversion potential. That is, it is not enough to just click on an ad, its value is given by the analysis of the actions following the click — registration, newsletter sign-up for example — in a word, its likeliness to turn into business results. Relevence of the Ad: Further, the price of a click is influenced also by content relevance, the type of site on which the ad appears. Keywords and theme that triggered the ad are also analyzed. The more content-relevant the ad, the higher the price for the click. It is logical that not all publishers be rewarded the same, but taking into account their potential as ROI holders. But we've already seen this as a factor analyzed through the “smart pricing” system. Now, the shares of payment (between AdSense and publishers) are not calculated all alike, for not all publishers are “equal”; it is known, for example, that big web publishers get to negotiate the rates with Google. Why? Authoritative, big publishers represent the pledge of high ROI, what makes them “most wanted” by advertisers. Thus, they will represent for Google also an important revenue source. Undoubtedly, they get to be stimulated to participate and stay in the program by means of a preferential treatment. That would lead to the deduction that smaller publishers are granted lesser shares. Google states this explicitely in their Initial Public Offering Registration Statement (as filed with the Securities and Exchange Commission on April 29, 2004): Typically, in situations where we pay a Google Network member more than the revenue we receive from our advertisers in connection with paid clicks on that Google Network member’s web site, we recognize the difference as cost of revenues. Due to intense competition for Google Network members and our limited ability to accurately forecast the number of paid clicks that will result, we expect that we will enter into AdSense agreements from time to time under which we will make payments to the Google Network member exceeding the revenue we recognize from the agreement. Cost of revenues also includes amortization of expenses related to purchased and licensed technologies. But it is not necessary to be an “authority” publisher, or a very big one to convert well your site into money. Smaller sites can have excellent potential in this regard. In an analysis to determine the sites' “monetization” rate, we may speak of an “extended” smart pricing applied by Google. There are some criteria which are unofficially but almost certainly taken into account, which we chose to expose here for you to see also our perspective on the way Google AdSense™ pays: High traffic and impressions — High traffic is not strictly connected to the CPC. Targeted traffic is more valuable as it is likely to convert more. Thus, sites generating quality traffic (resulting in high CTR) will earn more. CTR seems to be taken into account by AdSense™ when choosing the sites for directing higher paying ads. Site size and age. High Page Rank (with all the parameters it involves — valuable content, relevancy of the inbound links, keyword relevancy). After all, sites that would meet all of the above criteria are very likely to produce more, the higher their potential to raise a profit, the bigger Google's interest to keep them into AdSense.

How to filter unwanted Ads?

Geting rid of unwanted Ads is an important technique in maximising the profits from Adsense. Adsense sometimes serve ads that may not work very well towards maximising the profitability of valuble online virtual real estate (i.e the Ad space on a publishers website). Some of the examples are PSAs (Public service Ads), untragetted Ads, Ads of the competitors etc. A publisher has to avoid these things as much as he/she can using proper content optimization or by using the filtering facility.
Google provides tools in Adsense account such as Competitive Ad filter. With the Competitive Ad Filter, a publisher can choose to block ads that link to specific URLs. The filter prevents all ads from the specified URL from appearing on the publishers web pages. Up to 200 URLs can be filtered like this. While it is good idea to prevent unwanted URLs from apprearing on a website, it is possible that webmasters (i.e publishers, website owner, blog owners etc) may use it a little too much, which can even hurt them. So let us see how and when and to what extent to use this tool.

When and How to use the Filtering Tool?

Now let us consider first of all, 'what Ads are really unwanted?' - There are varous types.
PSAs:

Public service Ads are displayed usually when Google has not yet crawed a web page. To avoid these a publisher can choose to display ads from an alternate URL or just a solid color. These option are provided in the Adsense Setup area.

Competitor's Ads:

If a publisher sells services or products through his site, this tool is very useful, as the publisher can avoid direct competitors from advertising on his site.
To block their URLs, a publisher can find them by searching on a search engine for keywords and keyphrases that are relevant for his business and then look at the AdWords that appear. Then chose these URLs to filter using filtering tool.

Untargeted ads:

Sometimes Adsense serves inappropriate ads that are not targeted to the content under question. Most of the times this has a lot to do with page theming and keyword optimization. It is not enough just to filtering them out, but a publisher should work more at page optimization and make sure that the webpage is clearly themed, so that Google can find appropriate and targeted ads that have a greated chance of producing a click.

Some things to consider:
A publisher may think it would be a good idea blocking ads that he considers paying too low or being slightly off-themed. This however, is not always the case. As Google serves most relevant and highest paying ads first, filtering too many URLs may actually reduce the 'earning per click' (EPC) on page and also the click-through rate (CTR). Also, one has to keep in mind that by entering a top level domain into the filter list, all ads that link to subdirectories below that domain will be blocked. This filtering system, unfortunatly, has its own limitations - : it's not just ads-related, it blocks all the ads (not just the unwanted ones) from a URL.
So,a publisher has to be careful not to do it more than required. A publisher usually finds it more profitable to use the filter for what it was intended: to block competitors' ads or ads and URLs that are really of no benefit.