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Google AdSense Explained

What is Google AdSense?

google_adsense_explainedAdSense is an advertising program offered by Google, it allows you to easily add Ads by Google anywhere onto your website. AdSense is a great way for many Website Owners to generate a constant passive income from their website. AdSense displays ads on your website that are related to the content on that page, this makes visitors more likely to click on those ads.

How it Works

Once you have signed up with Google AdSense and have been approved you will be able to create "Ads", you will then be given code to display that ad on your website. When you place the code for your AdSense ad into a page on your website Google will crawl that page and from the content determine what ads are related to your content, than only shows those ads on that page. Every time someone clicks on one of those ads you will receive a small commission, the amount varies.

The ads for AdSense are provided by Google Adwords, this is a program where people pay to get there ads shown through the network of Google AdSense. Adwords is used to drive traffic to a certain page that usually sells something, there will be more information on Adwords later in the Building Traffic section.

How much does it cost and how much can you make?

The great thing about AdSense is "It's Free", you never have to pay anything to use it, and you can only make money with AdSense. Now the question is how much money can you make with AdSense? This is one question with an answer that can change vary dramatically, simply put "it depends" nice answer I know, it explains it all. You won't really know how much you can make with AdSense until you use it, the amount you make will change depending on things like; Topic, CTR (Click through rate), what you earn each click (can change a lot), the amount of traffic (visitors) you get, ad placement, etc. Basically you can say that the amount you make will scale with the amount of traffic you get. On average you can get between 5cents per click all the way up to a few dollars per click, this depends a lot on the topic and content of your website.

You can work out a very rough estimate by using this formula, I made it myself quickly so it's really rough; (Traffic x CTR) x CPC. Now Traffic is how much visitors you get a day, you should know this one, CTR is the click through rate (usually around 1-3% varies a bit, some sites may get higher) use it as a decimal percentage so 2% would be 0.02, and CPC is the amount you get for each click, this changes a lot but for a rough estimation 20 cents is a good value to use.

Should you use AdSense?

Personally I think most content websites should use AdSense as it is a passive income and easy money. On the other hand for those of you that are making sites to sell products should probably steer away from adding AdSense to their sales pages, that's just greedy and you will find you get less sales of your actual product. I'd say it's ok to put AdSense on other pages that you have decent content on but not on sales pages, also Google doesn't like their ads being placed on pages with little or no content. If someone was to click on an ad on your sales page then you are sending your potential buyers to other sites to buy something.

So I recommend using AdSense if you have a content based website and want to make a passive income from it. It's also good to add AdSense to your blogs, just don't go crazy on the ads, keep them subtle. Although these are just my recommendations some of you will have your own opinions and reasons for not wanting to add AdSense to your website.

Potential of AdSense

Now I know I said it was hard to say how much you can earn with AdSense, which it is, but it's easier to tell you the potential of AdSense. First I would like to say that not everyone will make much money with AdSense and again it depends heavily on how much Traffic you get. With that said AdSense can earn some people a lot of money, a very small amount of people have been able to earn tens of thousands of dollars every month from AdSense. However the average high earner is capable of earning thousands a month.

Just remember to work hard on your website, provide killer content and drive your traffic crazy and you will earn your fair share of Google AdSense Checks. Check out "Building Traffic" to learn how to increase your Traffic.