How Does AdSense™ Work?
Google™’s huge advertising system has two sides: on one hand there is AdWords™ — advertiser’s playground — andAdSense™ — publisher’s domain.
- Advertisers pay on a PPC or CPM basis (or both if they choose both forms) for Google to display their ads.
- Google places these ads on its keyword search result pages (relevant text-based results marked as “Sponsored links”) and on external sites that host Google ads (the ads appearing under “Ads by Google”).
- 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 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.
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 on in the backstage: Google™ centralizes the ads 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 your website is good enough for the purpose. Your gain means 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.