Adsense is a Google owned program that allows webmasters to display pay per click ads on their webpages. The advertisements are content sensitive (or contextual). This means that if you have a website on computers, advertisements displayed with be about computers. Adsense ads are highly relevant and it is because of this reason that Adsense as a program is highly successful. In fact, in the 3rd quarter 2007, Google made a whooping $1.45 billion just from Adsense alone.
There have been other ways of online advertising like popups and banner ads. However, these are not so profitable and efficient when compared to pay per click ads. When was the last time you clicked on a banner or waited to see what a popup was about to display ? You get the point! However, the case is different with pay per click ads. These ads are contextual and so blend in the with the content of the web page. Users click on the ads only when they are interested in the ad. And this creates highly targeted traffic to the advertiser. Targeted traffic means more conversions and return of investment plus profit.
On the other side of the Adsense program there is another program called Adwords, which allows advertisers to buy contextual pay per click ads. To put it in other words, what Adsense is to publishers, Adwords is to advertisers. Suppose, you run an online stores selling RAM modules. You register for Adwords and bid on the keyword "Buy cheap RAM". So if a visitor searches for "buy cheap RAM" and visits a site where your ad is being displayed, he may click on the ad and buy a RAM module. If you a get of profit of $5 per RAM stick and you bit $1 for a click, it would be $4 in profit. If on the other hand, if you were to take the help of a search engine optimization firm to reach the top for that same keyword, you will not only have to invest much more, but you will also have to wait a long long time before you see profitable results. For this reason most people in the field of online marketing use Adwords and other similar programs to see instant results.
For the webmaster, Adsense offers a very good of monetizing his/her website or blog. First and foremost, Adsense ads blend perfectly with your content. Unlike other forms of advertising like banners or popups, ads are not forced onto the user. There are a very large number of advertisers and for this reason, there are matching ads for every possible niche. And getting accepted into the program is very easy. If you have a website with about 20 pages or so that complies with the Adsense TOS, you will get accepted for sure.
Adsense also has a cost per action program called "Adsense Referrals". This means you get paid only when the advertiser makes a conversion from the ad displayed on your site. It can either be a sale or a sign up or something similar. This is profitable for both the advertisers and the publishers. Advertisers have to pay only when they see results and publishers get paid a much bigger sum when compared with ordinary pay per click ads.
If you want to make some money from Adsense, I would recommend creating a website on a topic you are familiar with. Create about pages, each with 500 words or more and then apply for the Adsense program. Don't start with popular topics like web hosting or credit cards. You will have a tough time getting traffic from search engines as there are an extremely large number of websites with whom you will have to compete. And don't create a website on some topic that nobody is interested in. Even if you top the search engines for your keywords, you won't see good traffic.
There is plenty of information on this topic and there are many ebooks. The main website www.adsense.com provides plenty of information. You may also consider subscribing to blogs dealing with adsense and stay updated with new developments and changes. You may also consider buying some of the ebooks on the topic. These provide step by step information on creating viable websites. Most of these ebooks also provide good information on search engine optimization and other related topics. If you get stuck with doubts, you can ask in webmaster forums like DigitalPoint and other forum members will help you.
Source By : John Browing
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