How Does Google AdSense Work

Understanding how Google AdSense works

How does Google AdSense work? How does Google and the Publisher make money? Google AdSense is the premier Pay-Per-Click scheme that works by enabling webmasters to advertise content related ads on their sites. When a visitor clicks on an ad, Google shares out the fee paid out by the advertiser with the Publisher. Basically the AdSense scheme is Google’s way of monetizing the flow of traffic through the web.

The key to Google AdSense success is contextual advertising

The reasons why Google AdSense works so well is because it can deliver good quality content related ads. Depending on the topic choice, how well the content has been put together and how cleverly the keywords have been placed Google AdSense can bring you ads that are very focused towards the interest of people visiting a particular website.

So for example, let say you happened to be looking for reviews of new computer blu-ray burners and you find a site with the information you want. What could interest you more than ads specifically focused on the topic of computer blu-ray burners? After all you were searching for them anyway, so Google AdSense knows that you are going to interested in the ads they display on the site in question.

Why Google AdSense works is because it makes the most of visitor interest. People in general are more primed and ready to respond to contextual ads after a search engine query. The delivery of context related ads has been crucial to Google AdSense success.

So how are context-related AdSense ads delivered?

Google uses sophisticated software to automatically analyze the content of webpages. The software determines the type of content it contains, focusing on key areas of the page; like its title and headings. The process for determining contextual ad relevancy is very similar to the one Google uses in its search engines to determine if the content of a site matches the keywords used in a search.

How Google AdSense Works: Terms and Definitions

If you are new to Google AdSense you will undoubtedly come across a number of specific terms that describes various aspects of the scheme. Most of the terms are very simple but it is important to know what they really mean before you can begin to delve deeper into how Google AdSense works.

Here are some of the most used terms in the world of AdSense:

• The Click: This is the money making event triggered when a visitor clicks on a link within a an ad unit in a website. It is this action that generates the revenue.


• Ad Unit: This is often a group of ads that are delivered by Google using a piece of JavaScript code. The color, font and size can usually be changed by the Publisher. Choice of ad itself is determined by Google.


• Cost-Per-Click (CPC): This is the amount paid to the publisher by Google for an individual click on an ad. Also known as Pay-Per-Click (PPC).


• Click-Through-Rate (CTR): A very important term that measures the number of clicks divided by the number of times an ad is shown. Normally it is a value derived from the clicks divided by page impressions.


• Page CTR: The average click-through-rate for ads on a particular page.


• Page Impressions: The number of times a webpage is displayed and viewed.