Archive for January 29th, 2007

Google Adsense Updates Policies

Google adsense just announced at the Google Adsense blog that they changed their policies. The new version includes a lot of things different from the last for example images next to ads has been expressly banned. Here’s a review of the changes and differences from the last policy.

More: continued here

What is Google adsense?

If you look at the Internet a few years back, you’ll see that advertising was done in a way that was very similar to other types of media like television, or actually, more like what you see in a newspaper.

You’d enter a site, and in some location you’d get to see a banner (often these were quite numerous and very large), which would present and ad for whatever company was paying for adds on your space.

But there was one problem with this kind of advertising. It really wasn’t exploiting the fact that the adds weren’t in some newspaper, but were instead presented over the Internet.

You’ve probably noticed a lot of things like this over the pages you’ve browsed. You’re looking at an on-line shop, looking for a watch but you get a banner that advertises a car.

While you might, at some later point want to buy a car, right now you’re looking for a watch and it would have surely been nice if the banner were advertising a watch, because then you would have probably clicked it.

Well that’s also what the folks at Google thought of, so they came up with a killer idea. This is knows as Google AdSense, and it’s known as a targeted advertising program

What you do (as a web designer / website owner) is, instead of jumping through hoops to get some banner on your site that your visitors won’t even care about, is you just allocate some region of the screen.

You then sign up for the Google AdSense program, you insert a small snippet of code in your webpage and Google ensures that in the location you specify, a banner will appear, presenting adds relevant to the contents of your site.

It’s very easy for Google to do this because Google is a search engine company. It looks for the key words in your page, searches a database of websites to find the ones related to whatever is on your page and presto: a targeted ad.

You (the webmaster) get a fee for each visitor that clicks on an adsense banner on your site. Now that’s bound to happen more often then with a traditional banner because people are actually interested in what’s in that banner (otherwise, they wouldn’t be on your page would they?).

But, this also does wonders for the people who want to advertise. And it’s because of the same reason. The greatest thing about Google AdSense is that all the content in a banner is relevant.

This relevancy is the key to the programs success, and also the reason why everyone remains happy. The advertiser has a relevantly placed advert, the publisher earns money from their content and Google take their cut.

Of course, as always, Google has set some high standards for its AdSense program, in terms of looks and functionality. You can’t have more than two such banners on your website and Google only inserts text in these banners.

So an extra benefit is that AdSense advertising is a lot less obtrusive then regular advertising. But this also means you should position the banner better because it’s possible that visitors might miss it altogether.

So in the end, Google AdSense is an advertising program that is unique because the ads are relevant to the content on the site. Anyone that wants to advertise pays Google for it. Anyone who wants to place ads on their site does this through AdSense, getting paid by Google in the process.

All transactions are run through Google, and the advertisers and publishers get access to statistics which help them to understand and moderate the effectiveness of their campaign.

The whole process is elegant, simple and effective from anyone in the chain, from site visitors to advertisers, and it’s one of the reasons Google are known for their innovation and new thinking.

How Much Money Will I earn Through Adsense?

If you’re looking at Google’s AdSense program you’re surely asking yourself how much you could make from such a program, and you probably think you can’t make as much as you can from traditional advertising schemes.

Google, of course, keeps a great deal of secrecy regarding how much AdWords advertisers pay per each click directed to their site and the same applies for how much AdSense banner holders make from their websites.

While there’s nothing official, rumors circulate around the Internet concerning the amount of cash a website can earn by using AdSense. And many people (illegally) disclose how much they have been making with AdSense. There are stories of people raising over one thousand dollars per month using AdSense.

There are also stories of people exceeding $100,000.00 per month but it’s a bit hard to believe such stories. The truth to the matter is that if you have a small website and you just want it to support itself, and don’t wish to reach your pocket for its maintenance costs you can probably do this with AdSense.

AdSense is also very good for people who host a lot of pages. Even if the said pages don’t generate a lot of traffic individually, every click counts and you can earn up with a lot of money by doing this. And that just goes to prove that sometimes quantity matters nearly as much as quality.

There’s no telling how much money you’re going to make by using Google’s AdSense but you can sort of tell for yourself, before actually starting, by taking a few things into consideration.

First, is the amount of visits you get every day. While there’s no way to estimate precisely on this, you can generally make a safe assumption that if you have a lot of clicks per day you’ll be making good money.

Also, this depends on what exactly your site is about. If your site is about anything popular (music, sex, whatever) you’re bound to get a lot of banner clicks. These have a coefficient associated with them, called the CTR (click through ratio).

Basically, what it translates to is that if a large proportion of your site’s visitors click the ads you’ll be making more money. And the best way to do this is to have some popular content in your site, ensuring the links direct users towards popular items as well.

Then of course, there’s the position and number of ads on your website. While you don’t want to overdo it, having many links will undoubtedly generate more income for you as a webmaster. Do not however believe, that if you just add a lot of ads in an important portion of your site, visitors could always just skip them (and be assured that many do just that).

There’s something between an art and a science to positioning your ads. People generally look in certain places and never look in others, and knowing this a website author and/or webmaster can do a great deal of things to increase his earnings with AdSense.

All in all, the amount of money you make with AdSense depends on many factors. But if you have a site with interesting contents and/or many pages, and if you see a constantly large amount of traffic every day, you can bet you’ll be making a lot of money with AdSense.

Even if you aren’t in the above categories, AdSense is still worth using because there’s very little hassle in setting it up, and many times it can help financially support the site, whilst being a nice bonus to get through the post at the end of the month.