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Adsense - day one

July 11, 2009

adsense

adsense

AdSense is Google’s syndication program for its AdWords advertisements so first up, you need to understand AdWords to make sense of AdSense.

AdWords are small text-only ads that sometimes appear on the right hand side of Google’s search results page when you do a search.  They are extraordinarily powerful - MUCH more so than you’d think at first sight - for 5 reasons.

They are 100% targeted: the advertiser chooses which keywords have to be entered before their ad is shown. This means that you can make your ad appear ONLY in front of people ACTIVELY LOOKING for information about a topic.

You sell binoculars?  Then you can set up your AdWords ads so that they show up ONLY when someone enters “Binoculars” into Google’s search box.  You can also restrict your ad coverage to specific countries or other defined geographic territories.

You only pay for click thrus. If no one clicks on your ad you don’t pay anything but….

Google penalises ads that don’t work well because it wants only ads that are RELEVANT to the viewer to be seen. Poorly performing ads get disabled automatically. This protects Google’s brand from being tarnished by irrelevant ads.

Google lets advertisers rotate different ads for the same keywords and AUTOMATICALLY shows the most effective ad more often. Thus there is an in-built survival of the fittest process going on where fitness is judged by real consumers voting in real time.

If they click, your ad stays. If they don’t, it doesn’t. Evolution can be extremely brutal - and fast!

Google gives advertisers incredibly detailed near real-time  response data so you can monitor and adjust your ad without wasting much money.

ADSENSE

So where does AdSense come in this?  Well, Google has taken their excellent AdWords program and extended it to third party sites and branded it AdSense.

However, AdSense differs from AdWords in that Google, instead of looking at the search terms entered into its search box to determine what ads to show, looks at what keywords would be relevant to the third party site.

For example, if you have a site rich in content about binoculars, AdSense technology determines that it would be an appropriate site to post AdWord ads about binoculars on. (Google uses its existing search technology to assess a site’s content.)  This technology is called “content-targeting”.

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