Google AdSense is a contextually based ad system derived from Google’s Webmaster advertising program called AdWords. Google.com earns most of its revenue by allowing other website owners to advertise on their search result pages.
In other words, Webmasters are paying Google to promote their ads on Google.com. Every time an ad gets clicked, Google deducts a pre-determined amount from their advertising budget.
You can see these AdWords ads by doing almost any search on Google and the ads show up in the the very top and the far right-hand side of the page. As you can see in the screenshot below the first three listings (with the beige background) on this results page and the list to the far right are all AdWords ads paid for by other Webmasters who want to promote their websites on Google.
Now you can earn a share of the revenue that Google earns from AdWords through a program called Adsense that allows publishers (other websites and blog owners like you and me) to display these same text ads on our own sites.
In other words, as an Google Adsense publisher, you are helping Google advertise these AdWords ads, and Google is paying you a share of the revenue they earn every time your visitors click on your ads.
How Does It Work?
And because of their savvy technology, Google quickly reads the content of any page that contains its AdSense code (page title, content, etc.) and interprets what each page is about, Google then supplies ads that are relevant -- in context -- to the page information. A page about gemstone jewelry will show ads about gemstone jewelry, or gemstone pendants, or perhaps just about gemstones. It won't show ads about iPods or travel to Greece.
The Google AdSense system is very easy to use, and a simple way to add another income stream to your business's bottom line.
Getting Started Video Tip
Richard Gorham (www.leadership-tools.com) has put together an excellent video resource for monetizing with AdSense, full of information and strategies. Click below to start watching this video (11 minutes) and cement your understanding of AdSenese.
Creating Your Website for AdSense
Before you even begin your site, make sure you have identified your best Site Concept, have brainstormed it extensively, and then pruned and sorted your keywords into a 3-TIER blueprint. It will be some work at the beginning but once you know exactly what your site is about it will be easier to write a lot of content.
The more content you have, the better chance you have getting accepted into the program. Also, the more content, the greater the earning potential. Google AdSense is nothing but a numbers game. If you want to make a lot of money, prepare to write a lot of content.
Now let's talk about building your website. There are two ways you can approach this:
Do it Yourself (DIY) from scratch
Use Site Build It! (SBI!)
The Do It Yourself Method
If you use the DIY method, you will have to go and register a domain name (yoursite.com) and then sign up for a web host and build your pages. You can either learn HTML or buy some kind of web editor like Microsoft FrontPage or Dreamweaver to build your pages.
With web hosting averaging between $3 and $15 per month, the DIY method is usually the most cost friendly of the two but you are mostly on your own in terms of learning how to create your web pages and adding the AdSense code to your site.
Web hosts are generally there to house your site. They don't specialize in helping you market and optimize your site for the search engines to help you get traffic. So don't expect a lot from them in terms of helping you market your site and making money with Google AdSense.
Use Site Build It! - A Web Host Made for AdSense
This is a revolutionary web host like no other. Site Build It! was created long before Google AdSense was born, but the core lessons of this all-in-one site building system make it the perfect fit for the Google AdSense program.
Because SBI! teaches you how to build income through contextual content websites (like this one) and the AdSense program is perfect for these kinds of sites.
I use it to build this site and it continuously earns money from Google AdSense yet I have no products to sell (except for affiliates). I'm simply offering information on a topic I know a lot about and SBI showed me how to rank high in the search engines for various keyword phrases. Over 70% of traffic comes from the free search engines.
The reason SBI! is unique from the other do-it-yourself hosts is that it provides all the web page building and marketing help (they actually teach you how to market your site) all in one place. Your domain registration, web hosting and marketing help come with the price, and these are just a few of the 85 Reasons Why I Love SBI!
One of the many great and easy to use tools that SBI! provides is Brainstorm It!’s “Get Google $” tool. This is an easy way to assess your theme’s Adsense potential.
I highly recommend using SBI -- especially if you plan on building a site specifically to earn money from AdSense. It is the kind of host that stands for everything AdSense is about -- rewarding website owners for building an abundance of useful content.
Even though the two companies are not related, it really is the perfect marriage between a great concept like AdSense and a web host that is dedicated to showing you how to make money by simply providing information.
You may have heard a lot of people saying "Adsense doesn't work." Most of these folks just haven't learned how to draw enough targeted traffic to their websites so they assume no one is making any money with the program.
AdSense definitely works, and I receive the checks every month to prove it, but you have to learn how to work the program and it all starts with how much traffic you have.
Remember, without traffic, you won't make any money with AdSense. That's why having a host like SBI is so important. Keep in mind, a regular DIY host does NOT help you with search engine rankings and traffic. They just give you the space and a "good luck!"
When you are accepted, simply copy and paste the provided HTML code into any page that you'd like to show the ads. If you've done a good job of defining the content on your web pages, the ads that show should be relevant to the content of your page...increasing the chances of click-thrus by your visitors.
You can either display the ads vertically along side the page like Google does or in a banner-like formation horizontally across your pages. The placement is up to you. You can even customize the colors to match your site's theme.
Google AdSense Demos and Guides
Learn how to get started with Google AdSense. The following written and multimedia tutorials explain the basics of how to set up and activate your AdSense account.
Managing Ads Video (Macromedia Flash required) Learn how to manage the appearance and settings of your ad units directly from your account.
Quick Start A written guide explaining the basics for getting your account up and running quickly. Topics covered include signing into your account, generating your ad code, and tips for implementing your ad code.
Activation Demo (Macromedia Flash required) Learn how and where to paste the ad code and publish your ads to the web. Follow along using your own web editor or sign up for a free Blogger site to start displaying ads in minutes.
Help with Ad Code Demo (Macromedia Flash required) Guides you step-by-step through adding the ad code to your site, including how to use two common types of HTML editor to implement the code. Plus, learn how to troubleshoot basic ad code issues you may encounter.
Learn how about our payment system and find answers to common payments questions in the following resources.
Payments Get acquainted with how our payment system works. Includes information on when you are paid, account performance, and setting up a payment hold.
Payment Schedule Demo (Macromedia Flash required): find out when your payments will be processed, sent, and arrive on your doorstep -- or in your bank account. Also outlines the process of reissuing earnings that have been credited back to your account.
Advanced Features and Optimization
Learn useful tips for optimizing the performance of your Google ads in addition to detailed information about some of our more advanced features by viewing the following written and multimedia tutorials.
Optimization Demo (Macromedia Flash required) Learn how ad size and placement can help maximize your AdSense revenue. This demo also covers channels and examines three successful AdSense publishers and their methods.
Success Stories Read up on some of our most successful publishers and find out how they've utilized Google AdSense to grow their sites and businesses.
Optimization Tips Tips for maximizing your earnings by optimizing the performance of your Google ads.
Competitive Ad Filter Information on how to prevent specific ads from appearing on your website. Covers how to set up a competitive ad filter, using the preview tool, and tips for effectively blocking competitor URLs.
Alternate Ads Learn how to utilize your ad space most effectively. Covers specifying a color, image, HTML page, or collapsing ad unit to be displayed when Google ads aren't available.
Optimizing with Channels Guides you through the process of creating both URL and custom channels, highlighting how best to use channels to track and optimize the performance of ads on your pages.
Tips on Succeeding With AdSense
Here are some tips for achieving success with Google AdSense.
Create a website with your (www.YourSite.com). Don't try to use a free web host because your site will likely have banners and pop-ups and get rejected because it looks unprofessional. Not to mention, a free web host will give you a website address like this:
Get traffic. Once your site is up and running you'll need to learn how to get your site listed in the major search engines.
Getting into Google is completely free and can bring in hundreds or even thousands of visitors per day. All you have to do is submit your site to them and wait patiently while Google adds it to the index. It can take a few months. Patience is key with Google. Then do the same with Yahoo and Bing.
And while you're waiting it's important you build up as much unique content around your theme as possible. Google loves large sites with useful content centered around a specific theme.
Don't create a hodgepodge site with topics on everything under the sun. Stay focused and make sure your site has an obvious theme.
Staying on Google's Good Side
Once your account is accepted, and you've placed ads on your pages, you run the risk of having your account disabled if you don't follow Google's policies. Here's a specific list of things to do (or not do) to ensure that Google does not disable your account.
Don't click on your own Google ads.
Don't ask others to click on Google ads.
Don't employ pop-up prompts or automatic software installations.
Be aware of how your site is promoted.
Don't place Google ads on sites that contain prohibited content.
Respect Google trademarks.
Don't tamper with the AdSense code.
Provide a positive user experience.
Provide a good environment for advertisers.
Be responsive (to e-mails from the Google AdSense team).
Another no-no is making Google ads appear as if they're links on your site, in the hope that your visitors will click on a link, thinking it's a navigation link. For details, see this post in the AdSense blog...