Adsense is an ad publishing program owned by Google which uses the page content in deciding what ads should be displayed. It utilizes the Google search engines capability in searching webpages. The ads that would be displayed on a particular webpage will depend on the keywords content of the page, user geographical location, and other factors considered by the Adsense algorithm, thus making the ads more relevant to the content of the webpages where the adsense code is installed.
The ads displayed by the Adsense code are coming from the advertisements of users enrolled with Google Adwords. The publishers will earn in CPC or cost per click of the ads displayed.
There are factors that affect the price per clicks for the clicks generated by an adsense ad. Two of these factors are: Advertisers’ Competition; and the Adsense CTR.
(1) Advertisers Competition
The minimum CPC of a particular ad is $0.01. This price will rise when advertisers compete on certain keywords.
As an advertiser or member of the Google Adword, I will set my ad campaign for the keyword “Money” to $0.01 per click. However, there are already 10 members of the Google Adwords who set their ad campaign for that same keyword, “Money”. So, in order for my campaign to be prioritized by Google Adword’s system, I will set my price higher than the other advertisers. But other advertisers will do the same… thus raising the CPC of the ads for that certain keyword.
In other words, the more advertisers are competing on particular keyword, the higher is the price (CPC) for that ad. And the higher the CPC for the ads to be displayed for that certain keyword, the higher the income of the publishers publishing ads for that certain keywords.
(2) CTR or Click Through Rate
Click Through Rate (CTR) is a percentage of the clicks generated over the total impression. It can be calculated by dividing the number of clicks generated by the total impression.
Normally, the higher CTR of the ads, means the higher income for the publishers because high CTR really means that there are lots of clicks generated over the impressions.
I am not really sure how the CTR affects the price of the clicks generated on ads. But some expert said that Google charges something to Adsense publishers who generated high impressions for the ads displayed at their websites but those ads received only few clicks. In other words, once the adsense generated low CTR, then Google will lower the CPC of the adsense displayed on certain Adsense account.
How to Start Making Money with Adsense?
Well, if you already have existing websites or blogs, then just visit the Google Adsense page and signup for an account.
But those who still don’t have websites or blogs, you need to create first. The website should contain atleast 10 webpages with contents and the language used should be supported by the Google Adsense terms. Once you already have your own website or blogs, so visit the Google Adsense page and signup for an account.
After sending your application to the Adsense Management Team, then just wait for their response because they will review first your application. If you qualify, Google Adsense Team will send you email telling you about this and giving you some instruction to start publishing the adsense ads.
Read always the terms and conditions for the Google Adsense publishers and learn to follow those terms and policies. These terms, conditions, and policies are created as our guide on what to do as an Adsense publisher. Failure to follow those policies means permanent expulsion from the Adsense publishers program of Google.
There are still lots of things that I should tell you about Google Adsense. Just check your emails for some updates about it or if you are excited already to learn about Google Adsense, then visit its homepage here.