A Complete AdSense Guide for Beginners

A Complete AdSense Guide for Beginners

In this guide we shall explore various facets of Google Adsense program. First, we will begin with a brief introduction to Adsense program. Then we will talk about the relation between Google Adwords and Google Adsense. Next is to understand how Adsense program works. Moreover, we will also discuss role of advertisers & publishers in this program. We shall also talk about users of Adsense and their profile.
Then we will move on to discussing how publishers, advertisers and Google itself is benefitting from this program. Next we will be looking why Advertisers and especially publishers love Adsense.
The guide would be incomplete without a discourse on competition faced by Google Adsense program. Then we will compare this program in India and USA. In addition to this, you will also come to know top beneficiaries of Adsense program in India.
Finally, we’ll conclude this guide on debating issues like lack of transparency from Google’s side, abuse of Adsense program by users and then Google’s criticism followed by future this program.

What is Google Adsense?

It is useless to reinvent the wheel. Hence I will not give my definition as it is available on Wikipedia. So according to Wikipedia “Google AdSense is a program run by Google Inc. that allows publishers in the Google Network of content sites to serve automatic text, image, video, and rich media adverts that are targeted to site content and audience.”

I hope, the definition is quite clear but again I’ll again put across in my words.

When you go online and visit a website, you might have noticed ads showing in between the web page you’re reading. Those ads are nothing but Google Adsense ads. It is also known as contextual advertising. Check the image below for demo of AdSense ads on websites –

Publishers:

Publishers are bloggers or website owners who create content where Google allows them to show various ads on behalf of advertisers.

Advertisers:

As I pointed-out in my previous paragraph advertisers are individuals who pay an amount to Google for showing their ads on publisher’s blog or website.

Relation between Google Adwords and Google Adsense

In order to get an inner understanding of Google Adsense program we need to know Google Adwords program. A new term has been introduced here, Google Adwords.

Now, what is Google Adwords?

Google Adwords and Google Adsense are basically two sides of same coin.

By reading above paragraph you might have got some understanding of Adsense program. So, here we shall only discuss Adwords program.

Google Inc generates its 90% of the revenue from Google Adwords. All the large, medium and small size business owners would like to sell their products to customers around the world.

In order to reach targeted customers in quick time these business owners make use of Adwords program. Here, they pay Google to show their ads on either search result page or on the content of a blog (Adsense).

Therefore, Google Inc totally runs only on the money paid by these business owners.

In coming paragraph, we shall discuss about Adsense program.

It is only by reading next paragraph you’ll get a clear idea how Adwords and Adsense programs are intertwined with each other.

I will talk little bit about Adwords ads. They are of two types; one is shown on right hand side of the search engine result. You might have noticed whenever you search something; a column of ads would appear on right side of the screen. Those are Adwords ads, business owners pay Google for showing those ads.

How Google Adsense Works?

Well! It is very simple. As I explained in last paragraph, business owners would pay Google for showing ads on publisher’s website.

Google Adsense is a program designed only for bloggers & site owners, unlike Adwords which is for business owners.

Now a publisher (normally called blogger) has to apply Google for Adsense approval. If he is approved then Google would allow him to show ads on his website.

Whenever, people or visitors comes to the publisher’s website in search of good content and they click on Adsense ad then Google pays money for every Click to the publisher.

Google pays publishers from the money that it is getting from advertisers. Advertisers pay Google for each click. The money paid by Google to publishers is 68% of what advertisers pay them and rest 32% Google takes away as commission.

To put it in simple way, if an advertiser pays Rs 100 to Google for one click on Adsense Ads by an online visitor then Google gives Rs 68 to the owner of the website on which ads are showing (publishers) and remaining Rs 32 Google takes away.

Thus, Google takes money from advertisers and gives large chunk of it to publishers and remaining keeps with itself.

Hence, it would be clear now, how Adwords and Adsense program are interlinked with each other.

Let us look at various ways of showing Adsense ads on a website:

• Adsense for Content: Nothing but contextual advertisement
• Adsense of Feeds: Ads will show up on feeds
• Adsense of Search: Ads will come on search
• Adsense for Domain: Place advertisements on domain names
• Adsense of Video: Ads on YouTube Videos

Some terminologies that are commonly used in Google Adsense are:

• CPC: Cost Per Click – The amount that publishers gets when visitors clicks on the Ads. It could be from 10 cents to $2 or even more.
• CTR: Click Through Rate – How many visitors click on those ads. If 100 people came to your site and only one of them clicks then CTR is 1%, if 2 clicks then CTR 3%, if 3 clicks then 4%.
• Views: Total number of impression blogger receives for his blog.
• Visitors: How many people came to your blog.