Adsense 101

Adsense 101 teaches you the basics about Google Adsense including what Adsense is, how it works and how you can make money online.

How do you Make Money with Adsense

The first lesson of Adsense 101 does not even deal with Adsense!  In order to understand how Adsense works you must first know what Google Adwords is.

Google Adwords is what makes google a multi-billion dollar a year company.  Since over 50% of the search queries over the entire web go through Google companies who want exposure benefit from placing ads on the search engine results pages.

For a company to get its ad on Google search results they bid through Adwords.  The company chooses keyword phrases (groups of words people search for related to their site) and bids a certain price per click.

Companies pay anywhere from 5 cents to $50 dollars to have their ad appear on search results for a specific keyword.

The cost of the keyword depends on primarily on the factors of profitability and competition.  Google pockets 100% of the Cost Per Click (CPC) when someone clicks on an Adwords ad on an internet search.

Adwords ads always appear to the right of search results (red highlight above) and sometimes above the organic search results .  Even though Adwords ads almost look exactly like the organic traffic you can tell because the advertisements are always labeled as Sponsored Links.

Adsense 101 Lesson 2

Now that you know how Adwords works you will be able to understand how websites make money with Adsense.  Adwords ads not only appear on the search result pages for specific keywords, but on related websites.

The Adwords ads that appear on related websites is Google Adsense.

For example, the University of Phoenix advertises for the term, "online college degrees."  When someone searches for "online college degrees" in a Google search University of Phoenix will appear as a sponsored link.

If you create an honest internet business which reviews online Universities and use Google Adsense you will have a University of Phoenix ad on your site.  If someone clicks this ad on your site, Google will pay you a percentage of what the click cost University of Phoenix.  In a nutshell, that is how you make money with Adsense.

Google Adsense ads are always keyword targeted.  If you have a webpage about pigs, your Adsense ads on your site will be about pigs and pig products.  The best part about Google Adsense is it can actually add to your website user's experience on your site.  All the information is directly related to the content of your site and best of all it's completely automated.  Google does most of the work for you.

Adsense 101 Lesson 3

One aspect of Adsense which remains a mystery is how much of the advertisers cost per click Google pays Adsense publishers.  In a recent New York Times article Google announced they pay 78.5% of the advertisers cost per click but this number is still questioned by most.

What isn't a question is the difference in payment for certain keywords.  This maybe the most important part of Adsense 101!  You need to realize that keywords in certain industries pay far greater than others.

If you plan to make money with Adsense with your honest internet business you need to figure out if it is worth it.  For example if your niche is vampires there will be very little competition which is good, but there will also be very little search volume and your Adsense clicks will not pay very well.

On the other hand if your niche is real estate or any other high paying Adsense keywords, you can be assured that each click will pay very wel, although you will have to compete with many more business.

Adsense is all about volume.  If you get 10 million people to pay you 5 cents each you've just made $500,000 which is not necessarily out of the realm of possibility.  The good news is there is an estimated 600,000,000 internet users and this figure is rapidly rising!

If you want to get motivated to succeed and make money with Adsense just think of the largest crowd you've seen in person.  It may seem like every person in the world was there but the amount of people wasn't even a small fraction of the people you can reach over the internet.

Adsense 101 Lesson 4:  Important Adsense Terms

• Impressions - How many times your ads were viewed (or the page loaded) by website visitors.

• Clicks - How many times your website visitors clicked on the Adsense ads displayed on your website.

• Page CTR - Click Through Ratio is a very important stat which is simply the ratio of clicks to impressions.  The importance of your CTR can not be underrestimated.  For example, You make $100 a day from Adsense with a CTR of 5% and 1000 visitors to your site.  If your CTR was only 2.5% it would take you twice as many visitors to make the same money!

• Channels - You can categorize your Adsense ads in channels.  Channels allow you to test the performance of your Adsense ads which enables you to fine tune your Adsense and get maximum CTR.

• Google Ad Manager - A beta program from Google which allows you more control of your adsense.  You can have allow advertisors to bid on certain placements on your site and have ads open in a new window to name a few features.

Finally

While Adsense is not the highest paying way to monetize your site it requires the least work.  You can think of Adsense as a tip jar which is open 24 hours a day and 365 days a year.  You can make money with Adsense rather easily.  How much money largely depends on your site niche, site design and most importantly traffic.  If you want to learn how to build free traffic while learning to create an honest internet business with a University quality education you would benefit greatly from SBI.

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Information Related to Adsense 101:

• Honest Internet Business
  • If you read Adsense 101 and really want to make money with Adsense a website that has valuable information in the form of quality original content is the only sure-fire way to do so.  Learn about internet business done the right way.
• Website vs Blog
  • You can use Google Adsense on a website and a blog but it is good to know which may be better for your honest internet business.  Use the knowledge you learned in Adsense 101 to make an informed decision.
• Free Websites Make Money
  • You do not have to spend an arm and a leg to get an Adsense business up and running.  If you want to use other methods outside of Adsense you can sign up for free websites and make money online.

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