Overview

Google uses its search technology to serve ads based on website content, the user's geographical location, and other factors. Those wanting to advertise with Google's targeted ad system may sign up through AdWords. AdSense has become a popular method of placing advertising on a website because the ads are less intrusive than most banners, and the content of the ads is often relevant to the website.

Currently, AdSense uses JavaScript code to incorporate the advertisements into a participating site. If it is included on a site which has not yet been crawled by the Mediabot, it will temporarily display advertisements for charitable causes known as public service announcements (PSAs). (The Mediabot is a separate crawler from the Googlebot that maintains Google's search index.)

Many sites use AdSense to monetize their content. AdSense has been particularly important for delivering advertising revenue to small sites that do not have the resources for developing advertising sales programs and salespeople. To fill a site with ads that are relevant to the topics discussed, webmasters implement a brief script on the sites' pages. Sites that are content rich have been very successful with this advertising program, as noted in a number of publisher case studies on the AdSense site.

Some webmasters work hard to maximize their own AdSense income. They do this in three ways:

1. They use a wide range of traffic generating techniques including but not limited to online advertising.
2. They build valuable content on their sites which attracts AdSense ads which pay out the most when they get clicked.
3. They use copy on their websites that encourage clicks on ads. Note that Google prohibits people from using phrases like "Click on my AdSense ads" to increase click rates. Phrases accepted are "Sponsored Links" and "Advertisements".

The source of all AdSense income is the AdWords program which in turn has a complex pricing model based on a Vickrey second price auction, in that it commands an advertiser to submit a sealed bid (not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid.

More About Google Adsense

• Page eCPM or Effective CPM

The effective cost per 1000 impressions, also called effective CPM or eCPM, is a commonly used number in advertising programs. It allows you to track your ad performance by comparing the earnings across different pages and sites. Essentially, effective CPM represents your estimated earnings for every 1000 impressions you receive. This can then be compared to other forms of advertising revenue, which may not use such directly comparable figures as cost per click.
Effective CPM doesn't represent your earnings - rather, it's calculated by dividing your earnings by number of page impressions, then multiplying by 1000. For example, if you earned $0.15 from 25 page impressions, then your eCPM would equal ($0.15/25)*1000, or $6.00. If you earned $180 from 45,000 impressions, your effective CPM would equal ($180/45,000)*1000, or $4.00.
This information can be used to compare revenue across channels that may have widely varying traffic - by figuring the earnings per thousand, it's easy to see which channels are performing better. In the examples above, the site or channel which received 25 page impressions could be considered a better performer because it has a higher eCPM.

How it is calculted?

From a publisher's perspective, the effective cost-per-thousand impressions (eCPM) is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands. For example, if a publisher earned $180 from 45,000 impressions, the eCPM would equal $180/45, or $4.00. However, please keep in mind that eCPM is a reporting feature that does not represent the actual amount paid to a publisher.

• PAGE CTR Clickthrough rate (CTR)
  The number of ad clicks divided by the number of impressions for the page of ads that appears when a link unit is clicked.





• OPTIMIZATION WITH CHANNELS
  Channels offer a deeper level of analysis than that provided by overall revenue reports. They allow you to break down reporting to monitor the performance of sites, sections of sites, or even individual ad units. Any time a channel is created, AdSense will record impressions, CTR, CPM, and earnings statistics for that specific page or ad unit.
  This provides you with a precise method of evaluating which sites and which locations will enable you to realize your maximum earning potential.





• INCREASE EARNING
  

Many blog publishers have tried the following points and experienced a little increase in earnings

1. Putting ads just above the tragetted text
   


2. By changing or improving the 'site look' like - making the ads on site unidentical but just a part of site ; By making a pretty layout , using good colour combinations
   


3. By adding link unit . These are most preffered ad format . Other ad formats like leaderboard , vertical banner and combination of text and images ads





4. By updating the site time to time and publishing more posts with useful text and variety of subjects or links . So that the visitor should not run away and could get much useful information and while looking for wanted subject he will 90% click on ads by google
5. Do not target at the subjects related to personal loans , local loans etc because google is much wiser than you. Just publish your thoughts . Dont click on ads yourself and let the people visit your site themselves.
   
6. By adding GOOGLE Search Bar. It takes near about 30% part in your earnings

AdSense for search

A companion to the regular AdSense program, AdSense for search lets website owners place Google search boxes on their pages. When a user searches the web or the site with the search box,

Google shares any ad revenue it makes from those searches with the site owner. However the

publisher is paid only if the ads on the page are clicked: Adsense does not pay publishers for mere searches.

AdSense for Mobile Content

AdSense for mobile content allows publishers to generate earnings from their mobile webpages using targeted Google ads. Just like AdSense for content, with AdSense for mobile content Google matches ads to the content of your site -- in this case, your mobile website.