What exactly is Google Adsense?

Google Adsense is a service run by the search engine giant Google Inc. It seeks to provide cost efficient advertising both for publishers as well as for advertisers. By this, we meant that you can both display your advertisements through adsense (after paying google a fee of course) as well as display advertisments of other advertisers on your site.
The process is extremely simple. All you have to do is make some space on your site for advertisements and then put in some lines of code provided by google and you’re good to go. Of course, you have to make sure your page isn’t ALL about advertisements only. That not only will lead to you getting banned from adsense, it will also ensure that any viewers you have for your content will be quickly shooed away by the presense of unwanted and unnecessary advertisements. Hence, placing of adverts and their colour schemes, text sizes is an issue which you will need to look at.
A word of caution, sites displaying content that is highly targetted towards a specific audience might run into trouble with adsense because you might suddenly find the adverts of your competitors displayed on your site. Which web mastaster would like their rivals to be advertising on their own site, thus drawing your clients (potentially) away from your products onto theirs?
The basis for displaying of adverts by google is simple. It matches the provided description of your pages with its customer base and then displays those adverts only which are relavent to the content on the page. The higher the relevence, the higher the advertiser will pay. If you are running a site with diverse content, you might find that the displayed adverts are not making much money at all, even though you have thousands of unique visits whereas a site with barely a few hundred unique visits everyday targetting a specific audience is making 5 times your amount. This is because Google is unable to decide what is the niche of your page, and hence it is quite difficult to put in highly relavent advertisements, which pay more than generic advertisements.

Unlike common perception, Adsense does not pay according to views, it pays per click on the advertisement. Hence, it’s not enough to just have thousands of page views, you will only get paid when someone actually clicks on the advertisements. The amount paid differs from ad to ad depending on the amount the Adwords Advertiser is paying google (which google never reveals).
The million dollar question of course is, how much can you make from adsense? Well, it depends. As I said before, if you’re targetting a niche, and a very specialised one, you can make enough per month to buy the latest mobile gadget whereas if you’ve got a general site based on, pretty much nothing in particular, you could probably make enough to buy you and your girl a cup of coffee at the coffee shop.
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