What Is AdSense?
Before signing up to AdSense, it’s important to understand what you’re signing up to. Many of the principles and strategies that I describe in this book make the most of the way that AdSense works. If you can understand where AdSense are getting their ads, how they assign those ads to Web pages and how they fix the prices for clicks on those ads or for ad appearances on those pages, you’ll be in a great position to manipulate AdSense in a way that gives you maximum revenues. Unfortunately, I can’t really do that. Much of the way that Google runs the AdSense program is kept under wraps. I know a few things and enough to do a great deal with our AdSense ads. But I don’t know it all. No one outside Google does. And for good reason. If it was clear how Google figured out the content of each website and which ads suit that site best, there’s a good chance that the Web would be filled with sites created specially to bring in the highest paying ads instead of sites built to bring in and inform users. People do try to build sites for ads not content, but they tend to make less money than high quality sites that attract loyal users who click on ads. The fact is, we can make the most of both AdSense and our own ad space without knowing the algorithms that Google uses to assign ads and pay sites. That’s because AdSense is pretty simple. At the most basic level, AdSense is a service run by Google that places ads on websites. When you sign up to AdSense, you agree to take the ads that Google gives you and receive a fee each time a user clicks on that ad (or for each thousand ad appearances the ad receives on your site, depending on the type of ad). The ads themselves come from another Google service: AdWords. If you want to understand AdSense, you will need to understand AdWords. Advertisers submit their ads to Google using the AdWords program. They write a headline and a short piece of textand here’s where it gets interesting they choose how much they want to pay.
The company’s owner might then say that he’s prepared to pay $1000 a month for his advertising budget but not more than $1 for a click. He can be certain now of getting at least a thousand leads a month. But that’s where his control over the ad ends. Google will figure out which sites suit an ad like that and put them where it sees fit, charging the advertiser up to a dollar a click until the advertiser’s budget runs out. (Of that dollar, how much the publisher receives is a Google secret. The New York Times has reported Google pays publishers 78.5 percent of the advertising price per click. The figure hasn’t been confirmed but it is around what most people in the industry expect that Google pays.) That makes AdWords different to more traditional form of advertising. In the print world, an advertiser chooses where it wants to place its ads and decides if the price is worth paying. The newspaper too decides how much it wants advertisers to pay to appear on its pages. Any advertiser that meets that price gets the slot and the publisher always knows how much his space is worth. Neither of those things is true online. When an advertiser signs up to AdWords, he has no idea where his ads are going to turn up. When you sign up to AdSense, you’ve got no idea how much you’re going to be paid for the ad space on your page. You leave it to Google to decide whether to give you ads which could pay just a few cents per click or ads which could pay a few dollars per click.
Google says that it always assigns ads in such a way that publishers receive maximum revenues, and that advertisers get the best value for their money.Signing Up Made Easy
First though, you have to sign up. Here’s how you do it. The sign-up page asks for a relatively small amount of information, not all of which is as obvious as you might like. First, you’ll have to tell Google whether you want an “individual” account or a “company” account — whether you’re a company with more than twenty employees or practically a one-man show that’s just you and up to nineteen others. That’s important for just one reason: it tells Google where to send the money. Take a business account and the payments will be made in the name of your company; take an individual account, and they’ll be paid directly to you.