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Google AdWords
http://adwords.google.com
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During the summer of 2003, Google introduced a new ad delivery mechanism for website publishers (both large and small) known as Google AdSense. Earlier Google AdWords ads were only available for publishers with more than 20 million impressions per month. AdSense can now cater to small niche website publishers by bringing in content targeted advertisements to their websites.
DETAILS
During the summer of 2003, Google introduced a new ad delivery mechanism for website publishers (both large and small) known as Google AdSense. Earlier Google AdWords ads were only available for publishers with more than 20 million impressions per month. AdSense can now cater to small niche website publishers by bringing in content targeted advertisements to their websites.

Ad Formats

AdSense provides the following ad formats or types:

Standard 468x60 banners (upto 2 ads)
Leaderboard 728x90 banners (upto 4 ads)
Skyscraper 120x600 (upto 4 ads)
Inline Rectangle 300x250 (upto 4 ads)

Publishers can also specify their own default banners for each of these formats.

Usage

Google AdSense website is easy to use. You can rotate a maximum of 4 color combinations for the ad displays to match your website colors. AdSense report shows the number of impressions, number of clicks and amount generated on a daily basis.

The same Google AdSense code can be used anywhere within your website or any other website that follows the AdSense guidelines. The code can be easily used in includes in web pages. If the web page, which displays the Google ad, is already indexed by Google, the AdSense code will automatically display ads relevant to the content of the page. If the page is not indexed, it shows default ads until the page is indexed.

Rates

Due to non-disclosure agreement, AdSense rates and payments are not disclosed by any publisher. However, the payments are all via CPC campaigns, where the cost per click varies with each advertiser, ranging from 5 cents to as high as $15 per click. Google AdSense statistics reveal the total exposures, daily clicks and daily payout amount to the publisher. Google also does not disclose their percentage share of the income.

If your site content falls under one of the high paying categories, the payouts are very good because of the higher CTRs due to content targeting. Most webmasters have reported better than average payouts when compared to other affiliate programs or CPC ad networks. Some of the categories that are known for good rates are:
Automotive Industry

Web Hosting
Online Gaming
Financial Markets
Other

Because of the inherent nature of content targeting, AdSense ads have a drawback of displaying competitor ads on your website. If your site sells services or products, AdSense may not be appropriate. There is an option of filtering out the competitors'''' ads by specifying their site URLs, however, this requires a manual process of weeding out all the competitor ads by locating the correct URLs (using both http:// and http://www) and setting them in AdSense. You can preview AdSense ads for your website by using this AdSense Preview Tool.

Summary

Google AdSense works very well for content targeting with more than 100,000 advertisers in their network. The ads are less intrusive (text based), but very relevant to the visitor''''s interest resulting in higher CTRs. Websites with a lot of content should give AdSense a try.
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LAST UPDATED : AUGUST 27, 2007
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