What is Adsense?

Google AdSense in 2011 will be a 7 billion dollar program for webmasters and partner sites. This 7 plus billion will be the actual payout to these webmasters and site owners which is only 68% of the total revenue of the program. Google keeps the other 32% and reports that money as revenue which in Q3 of 2011 was 27% of their total revenues (Google). Plainly put, THAT’S A LOT OF MONEY!

Google AdSense provides the easiest way for webmasters and website owners to make money from the content pages on their websites. I say it’s the easiest way to make money with a website because it is. Let me explain how it works.

How Does Google AdSense Work?

All a webmaster has to do is to take the Google AdSense snippet of code and place it into the HTML of their site. After this is done Google AdSense ads will automatically serve up highly targeted and related ads that correspond to the content which is on that particular web page. These ads come in the form of video, text, banner, and “rich media” which is like fancy for saying banner ads that move.

Once these ads appear on a partner’s web-page and a visitor clicks on the ad… Then the owner of the site makes 68% of what the advertiser of that ad bid. Money only transfers over to Google 32% and 68% to the partner website owner if someone clicks on the ad. It’s rather brilliant financially speaking.

To make Google AdSense work even more brilliantly they have the advertisers compete by forcing them to bid on keywords. The advertiser who is willing to pay the highest amount for a given keyword then gets their ad to appear on the partner’s website. This as you can see maximizes the revenues for both the partner website owner and Google.

Now, If you’ve ever wondered what’s at the heart of the “Web Economy” well I think you’ve found your answer, it’s Google AdSense. The AdSense program is the fuel of the entire Google machine. Think about it. It’s a software program that requires very little maintenance from Google and in Q3 of 2011 it produced Google 2.60 Billion in revenues alone.

Google AdSense is basically a software program that runs on auto-pilot for both Google and the partner website owner and it provides tremendous value to advertisers in the form of highly targeted web traffic. No wonder their numbers continue to rises each and every quarter.