Monday, November 19, 2007

Earning Money With Google Adsense: What Exactly Is This?

Most of the Internet marketing community is at least somewhat familiar with earning money through Google Adsense at this point. Having a good working knowledge of Adsense is meaningful as it can help you establish a successful undertaking through Google Adsense (and earning money.)

With the consent of the website owner, small contextual ads called as Google Adsense are published on their sites. The ads are created by publishers that are selling products and/or creating brand awareness. The ads that are created are called Adwords and they are also a Google sponsored program.

Google Adwords and Adsense go together hand in hand. Every time someone does a search on Google or one of their partner networks and clicks on one of the sponsored ads, then the person who created that ad will pay Google a predetermined price. This is what is known as 'pay per click.'

Where Adsense comes into its own, is that the website owner or host receives a portion of the money that Google has received from the creator of the Adwords ad. It is a well guarded secret what the percentage of the split is, and it does vary, but for our purposes let's say it's 50%.

If a publisher is willing to pay .40 per click for his Adwords ad, then the host of the website that welcomes Adsense can expect to see roughly .20 every time someone clicks on that ad that appears on their website. The other .20 is kept by Google. So basically it is a partnership of sorts between Google and website owners.

In the most relevant way possible Adsense is shown. What does this entail? Well, probably this can be illustrated best through an example. Let's say a website owned by Mary features women's clothing. Ads on clothing or specifically women's clothing can be shown on Mary's website, if Mary decides to monetize her website with Google Adsense. In her website if shoes are dedicated to a particular page, then on that page there would be Adsense ads appearing for women's shoes.

By what dynamic is price per click determined? The Adwords side of the equation kicks in here. Adwords publishers bid on keywords. The publisher will pay more per click depending upon how lucrative or sought after the keyword is. Keywords can be as high as $50 and above per click or as low as a few cents per click.

It is simple to see how someone with a high traffic website can generate quite a bit of revenue by teaming up with Google Adsense. Many Internet marketers will create web sites with specific content for the sole purpose of attracting high paying Adsense ads. -

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