How AdSense Works

Part 2

Site Targeted Advertisements

When considering such advertisements, the advertiser decides which page or pages on which to display advertisements, and pays on the basis of cost per mille, or CPM. This is a commonly used method in advertising. This means that the cost of the online advertising is based of what it would cost to show the ad to one thousand viewers. Rather than a specified cost for the campaign, CPM determines the cost per 1000 views of the ad. An example of calculating the CPM is as follows:
Total cost for running the ad is $20,000.
The total audience is 3,000,000 people.
CPM is calculated as CPM = $20,000/(3,000,000/1000) = $6.67

When considering referrals, Google deposits the appropriate financial sum into the advertiser's account when visitors either download the referred software or subscribe to the referred service. However, the referral program was ended in August 2008.

Search Advertisements

In Internet Marketing, Search Advertising is a technique whereby online advertisements are placed on Web pages that show results from search engine queries. Using the same search-engine advertising method, ads can be placed on Web pages alongside other published material. Search advertisements are targeted so that they match, as closely as possible, key search terms, called keywords, entered on search engines by the viewer of the web page. This targeting ability has increased the attractiveness of this form of advertising to ad buyers.

Consumers will often use a search engine before making a purchase in order to compare different types of a product in terms of price and benefits. When a consumer is presented with advertisements in keeping with the nature of the content on the page they are viewing, they are more likely to click on search ads instead of unpaid search results, which are often less relevant. Such search results, for which there is no payment, are also called organic results.

The basis of search advertising is therefore keywords. When a user wishes to ulilise the facilities of a search engine, they enter keywords to make queries. A keyword normally consists of one or two, with three words usually serving as a realistic limit for advertisers. Search advertisements are included in the results after the visitor conducts a search.

Contextual Advertising

When there is a request to view the webpage, the appropriate JavaScript code is sent. The result of this is that it may be possible for the owners of other websites to copy the code and use it in their own webpages. In order to protect themselves against such practices, AdSense customers are able to stipulate on which pages they would like the advertisements to be shown. In this way, AdSense is then able to ignore clicks from pages other than those that have been specified.

AdSense has the distinction of being the original major contextual advertising program. The methodology involves webmasters receiving a JavaScript code that, when added to a webpage, displays relevant advertisements from the vast Google store of advertisers. The relevance of the advertisement in respect of the webpage is determined by a specific Google bot (which is a computer program that performs automated tasks), called Mediabot, which indexes the entire content of a webpage.

Contextual advertising has offered huge opportunities in respect of the earnings capabilities of many websites. Since this form of advertisement is more focused, then it is more likely to be clicked, so generating revenue for the website’s owner.

Adsense – How To Succeed

Author's Bio: 

Peter Radford writes Articles with Websites on a wide range of subjects. Adsense Articles cover History, Versions, How It Works, Income.

His Website contains a total of 71 Adsense Articles, written by others and carefully selected.

View his Website at:

View his Blog at: