The web has become a complex “organism” that, to some, seems to have a life of its own. As the Internet has evolved, so have online sellers and publishers. The dot-com balloon is said to have burst, but savvy publishers have seized the coattails of the Google search monster and employ Google AdSense on content-rich websites. Google AdSense, a pioneer in providing content-aware ads, has been of great help to webmasters looking for alternatives to amortize their web traffic.

How does Google AdSense work?

The concept is simple: the publisher or webmaster inserts a java script into a website. Each time the page is accessed, the Java script pulls ads from Google’s AdSense program. Ads are targeted and related to the content of the web page serving the ad. If an Internet user clicks on an ad published by Google, the webmaster who publishes the ad earns a part of the money that the advertiser pays Google for the click.

Google takes care of all the tracking and payments, ultimately giving webmasters an easy way to display targeted, content-aware ads, without the headache of soliciting advertisers, raising funds, monitoring clicks or track stats, either of which could easily turn into a full-hour’s worth of work.

While Google AdSense, like many pay per click programs, is riddled with click fraud claims, it is clearly an effective source of income for many reputable web businesses. There seems to be no shortage of advertisers in the AdWords program that Google pulls AdSense ads from. Webmasters seem less concerned about the lack of information provided by Google and more interested in cashing their monthly checks from Google.

The Evolution of AdSense

While Google’s initial system was fairly rudimentary, only giving publishers the option to display a handful of ad formats, the technology behind even the earliest ads was anything but simplistic. The technology used to employ Google AdSense goes far beyond simple keyword or category matching. A complex algorithm is used to determine the content of the web page serving the ad. Once the content is evaluated, the appropriate ads containing related content are served.

Early on, Google implemented a system that allows publishers to filter out competing ads or sites they deemed inappropriate. Google also allows vendors to specify an alternative ad, in the unlikely event that Google is unable to provide related content ads.

Google’s progress

Google has come a long way in understanding the needs of publishers and webmasters. Google now offers a system that allows full customization of ads. Webmasters can choose from twelve text ad formats and can customize Google ads to complement their website and fit existing web page design. The options provided allow webmasters to select and create custom color palettes that match the color scheme of an existing website, making the ads much more true to nature.

Many sites have been able to integrate ads into their site design using different ad formats.

Examples of sites with embedded ads:

Investor partners – [http://www.investing-partners.com]

Podcasting Tools – http://www.podcasting-tools.com

RSS Network – http://www.rss-network.com

online reports

Google recently took a big step forward, giving publishers the ability to track their earnings based on channels defined by the webmaster. Recent improvements to Google AdSense reporting have resulted in webmasters having the ability to monitor ad performance with customizable online reports that can detail page impressions, clickthroughs, and clickthrough rates. Webmasters now have the ability to track specific ad formats, colors, and pages within a website. Webmasters can quickly spot and track trends. New flexible reporting tools allow webmasters to group web pages by URL, domain, ad type, or category, giving webmasters insight into which pages, ads, and domains are performing the best.

Reports are real-time, allowing webmasters to quickly assess the effectiveness of any changes. The new reports make it significantly easier for webmasters to optimize and increase click-through rates. Optional reports allow webmasters to monitor traffic and view both ad impressions and page impressions.

Advertisers realize the benefits associated with placing their ads on specific websites, increasing the likelihood that a potential Internet user will be interested in their product or service.

The truth not yet revealed

Google doesn’t yet disclose what percentage of earned ad revenue is paid to the webmaster serving the ads, but they’ve made progress on disclosure, recently lifting the ban that prevented webmasters from disclosing how much they earn from serving Google ads.

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