AdSense is an ad serving application run by Google Inc. Website owners can enroll in this program to enable text, image, and video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Google beta tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering (also owned by Google). In Q1 2010, Google earned US$2.04 billion ($8.16 billion annualized), or 30% of total revenue, through AdSense.

Google uses its Internet search technology to serve advertisements based on website content, the user's geographical location, and other factors. Those wanting to advertise with Google's targeted advertisement system may enroll through AdWords. AdSense has become a popular method of placing advertising on a website because the advertisements are less intrusive than most banners, and the content of the advertisements is often relevant to the website.

Many websites use AdSense to monetize their content; it is the most popular advertising network. AdSense has been particularly important for delivering advertising revenue to small websites that do not have the resources for developing advertising sales programs and sales people. To fill a website with advertisements that are relevant to the topics discussed, webmasters implement a brief script on the websites' pages. Websites that are content-rich have been very successful with this advertising program, as noted in a number of publisher case studies on the AdSense website.

Some webmasters invest significant effort into maximizing their own AdSense income. They do this in three ways:[citation needed]

They use a wide range of traffic-generating techniques, including but not limited to online advertising.

They build valuable content on their websites that attracts AdSense advertisements, which pay out the most when they are clicked.

They use text content on their websites that encourages visitors to click on advertisements. Note that Google prohibits webmasters from using phrases like "Click on my AdSense ads" to increase click rates. The phrases accepted are "Sponsored Links" and "Advertisements".

The source of all AdSense income is the AdWords program, which in turn has a complex pricing model based on a Vickrey second price auction. AdSense commands an advertiser to submit a sealed bid (i.e., a bid not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid. Google currently shares 68% of revenues generated by AdSense with content network partners.

Oingo, Inc., a privately held company located in Los Angeles, was started in 1998 by Gilad Elbaz and Adam Weissman. Oingo developed a proprietary search algorithm that was based on word meanings and built upon an underlying lexicon called WordNet, which was developed over the previous 15 years by researchers at Princeton University, led by George Miller.

Oingo changed its name to Applied Semantics (company) in 2001,which was later acquired by Google in April 2003 for US$102 million.

In 2009, Google AdSense announced that it would now be offering new features, including the ability to "enable multiple networks to display ads".

Source : http://en.wikipedia.org

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What is Google AdSense?

Google AdSense is a free, simple way for website publishers of all sizes to earn money by displaying targeted Google ads on their websites. AdSense also lets you provide Google search to your site users, while earning money by displaying Google ads on the search results pages.

AdSense outlined

- Get paid for displaying targeted Google ads on your site

- Customize ads easily to match your site's look and feel

- Track your success with online reports

- Read how publishers found success with AdSense in our case studies

How does it work?

1.Choose the type and placement of ad units to be displayed

-Specify where you want ads to appear

-Choose what types of ads can compete for those slots

2.Highest-paying ads display

- Advertisers bid on your inventory in a real-time auction

- Always show the highest-paying ad

3.Get paid

- Google bills advertisers and ad networks

-Get paid through our reliable payment options

More features

-Filter competitors’ or unwanted ads

-Choose within a wide variety of ad formats

- Identify opportunities with performance reports and Google Analytics integration

- Read how publishers found success with AdSense in our case studies

If you have a website that complies with our program policies and eligibility criteria, we encourage you to give a try to AdSense.

Google AdSense Program Policies

Publishers participating in the AdSense program are required to adhere to the following policies, so please read them carefully. If you fail to comply with these policies, we reserve the right to disable ad serving to your site and/or disable your AdSense account at any time. If your account is disabled, you will not be eligible for further participation in the AdSense program.

Because we may change our policies at any time, please check here often for updates. Pursuant to our Terms and Conditions, it's your responsibility to keep up to date with, and adhere to, the policies posted here.

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