11 steps to create Your First Set of Ads part2

6. On the same page, choose a color scheme for your ad. Google has several pre-made color schemes available in the drop-down list to the right, or you have the option to specify border, title, background, text, and URL colors by hexadecimal number. This is useful if you know the exact hexadecimal numbers of your Web page design and want to match them. For your purposes, select Seaside from the drop-down list.

7. Still on the same page, choose Slightly Rounded Corners from the Corner Styles drop-down list.
The other options available here are Squared Corners or Very Rounded Corners. Visually, each has a different appeal to people in different situations and on different Web sites.

8. For the last option on the page, choose Show Public Service Ads from the drop-down list and click Continue.
What’s this about public service ads? Well, Google shows public service ads when your site is so new that it can’t be properly populated with paid ads and when your site content doesn’t match ad content. You can choose to have these ads displayed, to have ads from another service displayed, or to have a solid color displayed as a placeholder if either of these situations applies.

9. In the new page that appears, click Continue.
This page of the wizard gives you the option to assign the ad to a channel, but you have not yet set up channels. I show you how to set up channels in Chapter 14. For now, channels aren’t an aspect of AdSense that you need to worry about. They’re for tracking your ads, but before you can track them you need to know how to create them and get the highest percentage of clicks possible. After all, tracking nothing — which is exactly how many clicks you’ll have if you do your ads wrong — still leaves you with nothing to track.

10. In the new (and final) page that appears, enter a name for your ad unit in the appropriate field and then click the Save and Get Code button.
When the page appears, a default name is already filled into the Name text box. I recommend renaming the ad unit something useful, but if you want to leave the default name, that’s fine.

11. Copy the code provided by AdSense and paste it into the HTML code of your Web site.

How you access your HTML code depends on how you got your code in the first place. If you’re using an HTML Editor/Web Page Creation program to design your Web site, you may need to dig around the menus to find out how to get the raw HTML code on-screen. If you’re writing your code from scratch, though, all you need to do is pull up the Web site code and paste the ad code into the spot on which you want AdSense ads to appear.

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11 steps to create Your First Set of Ads part1

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You created your account, waited, and were approved. Now AdSense is active. Now you can fill that blank space on your Web site with money-generating ads. But first you have to set up your ads.

Log in to your new AdSense account by using the username and password that you set up during the registration process. The page that appears at login is the Reports tab (AdSense always opens to this), which features a quick overview of your earnings and the reports that are available for
AdSense. Because you don’t have any data to be reported yet, you’ll have a big, fat zero on that page.

If you want to change that big fat zero into something a bit more lucrative, you need to set up a few ad blocks. Here’s how:

1.  If you haven’t already done so, log in to your AdSense account.

2.  Click the AdSense Setup tab, immediately to the right of the Reports tab.

3.  On this page, select the type of ad block you want to set up. For this example, go ahead and select AdSense for Content. The other options are covered in later chapters.
    The page that appears is the first step in the Ad Wizard, which walks you through setting up your ad.
    If you prefer a single-page form instead of using the wizard, click the wizard’s Single Page link. The information you’re asked to enter is the
same, but on the single-page form, you just scroll down the page instead of clicking a Continue button.

4.  Choose your ad type and click Continue. Your choices here are:
  • Ad Units: A graphical text box inside of which linked ads are displayed.
  • Link Units: A set of linked keywords that lead to advertisers’pages.
    Just to keep it simple for now, select Ad Unit.

5.  In the new page that appears, choose the size of ad you want to have appear on your Web site.
    Google offers a variety of different shapes, sizes, and types of ad formats. The format that works best for you depends on the space you
have available, the content of your Web site, and the design of the page on which the ad appears. For now, select 234 x 60 Half Banner from the
Format drop-down menu.

 

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Site content

Here’s where the program policies begin to get interesting. Okay, not really. There is rarely anything interesting about program policies. But a lot of meat is in this section of the program policies, and you should pay close attention to what’s here.

Google’s requirements for site content are basic: no violent content, no adult content, nothing related to gambling, and nothing associated with any type of illegal activities. But that’s not all. Google also frowns on Web sites that are related to anything that could be construed as controversial — tobacco, alcohol, prescription drugs, and weaponry of any kind. Google stops just short of disallowing ads on political pages, though that might not be a bad idea.

Think of it this way: If you were Google, what would you not want your name associated with? Just about anything you come up with will probably be on the restricted list that Google’s created. Read the list closely. Google doesn’t accept I didn’t know as a good excuse for violating the policies.

 

See also:

The charms of the Mediterranean-Rome and Florence

Why spring is great?

Why summer is great?

 

Author: Joe
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Encouraging clicks

The next section of the AdSense Program Policy document addresses the kinds of things you shouldn’t pull in an attempt to encourage people to click on your ads. I know this is a little negative, but it’s important that you pay attention to these no-nos because ignoring them could have dire consequences.

You can’t point out ads. You can’t pay people to click your ads. You also can’t use any kind of misleading titling around the ads (for example, using a Favorite Sites title when the ads really are just advertisements), and you must be cautious about the graphics you include around ad blocks. If they’re at all misleading and appear to be associated with the ads, that’s more fodder for the banning machine.
In short, all you can really do to encourage ad unit clicks is to place the ads in the best possible locations. Make them appealing with the design tools that Google provides and then leave them alone. Much more than that and you run the risk of landing on Google’s black list.

 

See also:

Day 6-8 of a two week tour

Day 1-5 of a two week tour

How to see more during your trips? Part 2

 

Author: Joe
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Warning:invalid clicks and impressions part1

“Clicks on Google ads must result from genuine user interest.”

That’s the first line of the most highly debated section of the program policies. This section of the policy lays out the guidelines for what constitutes a valid click. If you click your own ads, those clicks are invalid. If you program (or purchase) some piece of software to click your ads, those clicks are invalid. And these types of invalid clicks are click fraud. Click fraud is fraudulently clicking your own or someone else’s ads with the intent of affecting AdSense revenues or AdWords costs and is enough to get you banned from AdSense completely, no questions asked — and please don’t re-apply.

A valid click or impression has these qualities:

  It’s initiated by a real user to your Web site.

  The actual click is performed by a real, live person.

  The click is the result of genuine interest in the content of the advertisement by the real, live person.

Any clicks that don’t meet these requirements can be (and usually are) considered invalid clicks. Clicking your own ad even one time could get you banned from AdSense. It’s not worth it.

Passage reproduced from:http://gadsence.blog.co.in/2011/02/11/warninginvalid-clicks-and-impressions-part1/

See also:

Why to setup google adsense on your own sites?

Setting up for google adsense part 1

Setting up for google adsense part 2

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Warning:invalid clicks and impressions part2

You don’t have to say it. I hear your objection: How are you supposed to know how the ads apply to your site if you can’t follow them? Or how will you know how the ads will look or how they will integrate into your Web site?

Well . . . it’s half about trust and half about testing. Trying to view every single ad that’s shown on your Web site probably isn’t prudent. Because ads rotate constantly and each site visitor might see a different ad set — also called an ad group or an ad block — you probably couldn’t view all the ads, even if you wanted to.

Instead, AdSense has a testing capability — the AdSense preview tool. It’s a small application you have to download and add to your computer’s registry, which allows you to see what the ads look like and how they behave without having to click your own ads.

Download the preview tool from the AdSense Help Center at google.com/adsense/support/. In the Help Center, search for preview tool. You should be taken to a search results page where the top result is a link to the page from which you can download the preview tool. The directions
on the page walk you through downloading and installing the preview tool.

Here’s one catch: If you’re a Firefox user, the preview tool won’t be much help. It only works with Internet Explorer. For the purposes of previewing your AdSense ad blocks, it might be wise to keep Internet Explorer as a backup browser. You don’t have to use it all the time — just when you want to preview your AdSense ad blocks.

Passage reproduced from:http://gadsence.blog.co.in/2011/02/11/warninginvalid-clicks-and-impressions-part2/

See also:

Things about google adsense ads

Rules about google adsense

The potential of google adsense

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Quick but important note:Legalese of adsence!

The document starts with an explanation of Google’s legal rights. Basically, the Google lawyers are telling you that you need to be nicer and follow the guidelines Google sets forth or Google can — and will, if it becomes necessary — disable your AdSense account. The rub here is that after your account is disabled, you’re just finished. You can’t use AdSense anymore. (Yes, you could try to cheat fate by creating a new account, but if Google finds out it’s you, they’ll just shut you down all over again.)

See also:

AdWords: The flip side of AdSense

What is google adsense and why do you use it?

Is adsense right for you?

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Google's policies about adsense

If you’ve read anything at all online about AdSense, you’ve probably seen the phrase “familiarize yourself with the AdSense Program Policies” at least as many times as you’ve seen the moon. There’s good reason for that.

Google is very strict about AdSense users (publishers, in their jargon) following the guidelines set forth in the AdSense Program Policies document. If you don’t adhere to the program policies, Google reserves the right to disable your AdSense account. And Google will — faster than you can say “What did I do wrong?” They’re that serious about the guidelines because the appearance of your site and your adherence to their guidelines determine how people view the advertisements. Google wants to be in users’ good graces, and your cooperation helps to accomplish that.

The program policies aren’t filled with quite as much legalese as you might find in other policy documents, but you’ll encounter ten-dollar words like pursuant. Here’s a quick list of what you’ll encounter in the policy document:

  Legalese
  Invalid clicks and impressions
  Encouraging clicks
  Site content
  Copyrighted materials
  Webmaster Guidelines
  Site and ad behavior
  Ad placement
  Competitive ads and services
  Product-specific policies

See also:

Things about google adsense ads

Rules about google adsense

The potential of google adsense

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Wait untill your acount is active by google!

After you register a Google adsense abount, what you should do? 

First you have to wait for an e-mail confirmation from AdSense. That should arrive in your e-mail Inbox within a matter of minutes.
   

After you’ve confirmed your e-mail address, you have to wait a little longer for approval of your account. But don’t wait too long. Google
should only take a few days to approve or deny your application for an AdSense account.

One question you may have is whether you really need a Gmail address to complete the AdSense application. The answer is no. I can sing the praises of Gmail — Google’s Web mail program. I’ve had an account since the program was in beta testing, and it’s the best Web-based e-mail program you’ll find. But it’s not necessary to have one. Any e-mail address will suffice. Just be sure it’s an e-mail address that you have access to because that’s where Google sends your communications from AdSense, and you must be able to access those communications to verify your account.

Then congratulations, you've made it. Your google adsense acount is yours and you can start your brand new plan on it.

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part2 of Forms you should fill for setting up google adsense acount

• Email preferences: If you want to receive the AdSense newsletter and surveys about AdSense, place a check mark in the In Addition,
Send Me Periodic Newsletters with Tips and Best Practices and Occasional Surveys To Help Google Improve AdSense check box.
 

• Who referred you: Use the drop-down menu provided to tell Google how you heard about AdSense. This information is likely used to
help them effectively market the AdSense service.
 

• Agree to AdSense program policies: The last part of the form is where you register your agreement or disagreement with the AdSense program policies. Be sure to read these policies completely (a link to them is provided on the form). If you don’t agree to the program’s policies, you will not be approved for an AdSense account. Two of the four check boxes on this list are the most important points in the program policies. The third check box is your agreement (if you agree) and the fourth check box is just confirmation that you don’t already have an AdSense account. (You’re only allowed to have one, so don’t try registering another because it will be refused.) All four of these check boxes must be selected.
            

Don’t blow off the Policies section. You need to read the policies and make sure you understand them because Google strictly requires that
publishers (AdSense users) adhere to these policies. Slip up, and Google will strip your AdSense capabilities so fast you’ll wonder if there’s some capability-stripping super power out there that you’ve never heard of.

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part1 of Forms you should fill for setting up google adsense acount

The information you’ll be requested to enter includes
• Your Web site URL: Google will check the site to ensure it’s appro-priate for ads to be displayed.
 

• Your Web site language: To ensure that AdSense is available to your site visitors and that any ads placed are properly targeted to the
main language of your site.
 

• Type of account: Use this drop-down menu to select whether you’re creating a personal account or a business account. (If the account
is for you, it’s personal, and if you plan to use it as part of a business that you own, it’s a business account.)
 

• Country or territory: You do know where you live, don’t you?
 

• The payee name: This is the name under which you want your payments issued. If you’re creating a personal account, it should be your personal name. If you’re creating a business account, it’s best to use the business name, but you can also use your personal name if you prefer.
    Payments are made electronically or by check, but you set that information up after you’ve created your AdSense account, so for now all you need to know is to whom and where payments should be sent.
 

• Address and telephone number: Use the address where you would like to have your payments sent, and be sure to include a working telephone number in case the good people at AdSense need to contact you concerning payments. You also need to select the I Agree that I Can Receive Checks Made Out to the Payee Name I Have Listed Above check box. This just ensures that you’re aware that the name you have selected in the Payee Name portion of the form is the name your checks will be made out to.

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Setting up for google adsense part 2

In my experience, however, Google hasn’t used my personal information for anything more than what I want it used for. I have a Google account, multiple Gmail accounts, a Google Analytics account, and accounts with Google AdWords and AdSense (and a couple dozen other Google applications and accounts that I won’t list here). Not once in the past decade has Google used my information inappropriately. And I’m pretty careful about who I give my information out to. If you’re still not convinced, Google has a pretty rigorous Privacy policy in place to protect you. You can find that policy at google.com/privacy.html

 

 

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If, after reading that document, you still don’t want to register with Google, you can jump to the instructions for opening an AdSense account if you don’t have a Google account. Otherwise, you can set up a Google account while you’re setting up your AdSense account. And if you already have a Google account, you’re one step ahead of everyone else.

One more note about setting up a Google AdSense account: Some experts suggest that you should have an AdSense account that’s separate from your other Google accounts. The purpose behind having them separate is so that there are no repercussions should you accidentally end up in Google’s bad graces with your AdSense efforts. I think that caution is unfounded.

Unless you plan to use your AdSense account in a manner that’s prohibited by Google, you should run into no problems at all. And I find that it’s much easier to have an AdSense account that’s as easy to access as all the other Google applications that you use. One difficulty that I’ve discovered is the frustration of not having your AdSense account connected to other accounts, especially Google Analytics and AdWords.

You have to decide what you’re most comfortable doing: using your existing Google account, creating a new Google account, or not using one at all. But no matter what your preferences are, you can still get started with AdSense (even if not effectively) as soon as you get the approval from Google.

Finished.

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Source: Google adsense
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Setting up for google adsense part 1

One misconception that I had when I wanted to start using AdSense was that it would be difficult and time-consuming to set up. Boy, was I wrong! Setting up the account doesn’t require your first born child or your signature in blood. Setting up the account takes only a few minutes and a minimum of information. But how you set up the account is determined by whether you already have a Google account.

Having a Google account isn’t a requirement, but it can be useful. If you don’t have a Google account, you’re missing out on other Google applications, like Gmail (Google’s Web mail program), possibly AdWords (the other side of AdSense; it’s a pay-per-click advertising program in which you only pay for ads that users click), and Google Analytics (a Web site traffic measurement program that tells you all kinds of cool information about who visits your site and what they do while they’re there). A Google account makes connecting all these applications considerably easier, too.

If you’re going to use AdSense, you most definitely want to have some kind of Web site analytics program. A Web site analytics program tracks the number of visitors to your site and some of their behaviors while they’re on your site. You can use a program like AWStats or ClickTracks, but those programs are nowhere near as easy to use as Google Analytics.

Google Analytics is free, and it integrates with AdWords and AdSense, so it makes it easy to track your efforts in those programs. You may also want a program that’s easy to understand and use. Google Analytics fits that bill, too. And did I mention the program is free?

But I digress.

One reason that many people choose not to have a Google account is because they don’t like the way that Google collects personal information. People fear that because Google’s claim to fame is its ability to analyze the heck out of online information, it’ll use its expertise to dredge up all the personal information that it can about them. To some people it just feels far too much like Big Brother is watching.

Continue in setting up for google adsence part2

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Source: Google adsense
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Why to setup google adsense on your own sites?

You could. After all, why in the world would you want to give Google a portion of the income that you can generate selling advertising space on your Web site?
Okay, okay. I give. The question was a setup. The truth is I can think of a few (very good) reasons that it might be worth losing a small portion of your advertising revenue to allow Google to handle the logistics:

Ease of advertising sales: You could find out which advertisers are putting their ads on your site and go straight to them to cut a deal for
advertising that would cut Google right out of the picture. But would you know who to contact? And would you know how to go about convincing the advertiser to put his ads on your site? Probably not. Instead, Google handles those sales issues for you, and that alone justifies the premium that Google gets from connecting advertisers with ad publishers.

  Availability of time: Think of it like this: You can make and bake homemade bread to go along with your dinner every single night, but it’s time-consuming and bread’s available on the grocery store shelves that you don’t have to knead, let rise, or bake. And that bread is just as good as anything most people could make at home (and in a lot of cases, much better!). AdSense is the same. You could track down the sales, negotiate the deals, design the ads, and then connect your site to the advertiser’s site. But why would you spend time on that when you could let Google do it, place a couple lines of code in the design of your Web site, and then sit back and wait for the clicks to happen? Time is at a premium, and you have better ways to spend that premium than on the time-consuming activities that go along with selling, designing, and
implementing advertising on your Web site.

Avoidance of technological frustrations: Those ads that are placed on your Web site when you sign up for AdSense are created by someone.
Usually that someone is a tech geek of some kind who not only knows what works in online advertising but also knows how to program pages
or sections of pages to see, display, and update advertisements regularly. Are you that someone? Most of the time, the answer to that ques-
tion is no, you’re not the tech guru. If you were, you’d be in advertising and wouldn’t need this book. It just makes more sense to allow someone who knows how to handle the situation to handle it. That frees you up to do tasks that are more essential to making money.

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Source: Google adsense
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The potential of google adsense

Okay, AdSense seems relatively simple, so what’s all the fuss about? Well, the easy answer to that is money. Publishers use AdSense because it’s a potential revenue stream that might not otherwise be available to them.

In some rare cases, you may have heard of AdSense publishers making $20,000 or more each month. Those are rare cases, but it’s possible to build a decent revenue stream with AdSense if you manage the use of the ads carefully on sites that are very well designed. Is it likely that you’ll get rich? No.

What is likely is that you might be able to make enough to cover your Web site hosting or even enough to cover your mortgage. AdSense definitely has the potential. How you manage the program combined with how well your site is designed and the amount of traffic that your site receives determine how much you make.

In the coming pages, you can find out about all the tips and secrets that will help you maximize the potential of AdSense for your Web site. It all starts later, where I walk you through how to sign up for an AdSense account and get it set up on your site, so keep reading. Plenty more information is to come.

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Rules about google adsense

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Can I use AdSense on more
than one Web site?
Sure you can, and here are a couple ways to do it. First, you can use the same AdSense code on all your sites, and the metrics — the tracking measurements, like number of clicks and payment for clicks — are all collected in the same report with no way to differentiate the Web site.

The other way you can track multiple sites (or even different pages within the same site) is to use Google channels. Channels simply allow you to track different sites or pages on a site by using code that’s written to indicate each separate channel you set up.You can set up channels by URL or by custom-defined differentiators.

Can I have more than one
AdSense account?
Having more than one account might seem like a good idea in certain situations. For example, if you run multiple Web sites, you might want to have a different AdSense account for each of those sites. Google doesn’t think that’s such a great idea.

You’re limited to a single AdSense account per payee. You can differentiate between ads on your various Web sites with the channels that I mention earlier in the preceding section, but having two accounts is a no-no.

Google’s very sensitive about the ways in which publishers use AdSense capabilities. Reading through the AdSense program policies before you even being to set AdSense up for your Web site is a very good idea. Google won’t think twice about banning policy violators from using AdSense.

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Things about google adsense ads

What kind of ads will show on my Web site?
The advertising kind.
Okay. All jokes aside, the ads that show on your site are determined by the content of your site. Google uses a search algorithm to determine what ads are best suited for your site — an algorithm that’s quite similar to the one Google uses when you run a search query from the Google search pages or through a Web site-based search box.

That said, it’s possible that the ads that show on your site might have nothing at all to do with the content of the site. Here’s why: If your site content isn’t very focused, the algorithm gets confused and isn’t sure which ads are appropriate. So, it makes its best guess, which may or may not be correct.

The best way to ensure that the ads are highly relevant to your content is to have well-focused, keyword-rich content.

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Can I control ad content?
No one wants ads from their competitors on their Web site. Even if you’re not selling anything from your site, it’s likely that some ads you just don’t want shown on your site.

Fortunately, Google’s made it possible to exclude some companies from showing their ads on your site. It’s not too difficult to do; simply ad your competitors’ URLs (Uniform Resource Locator, the Web address) to your ad filters, and the competition is then blocked from advertising on your site.

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How much money can you make with adsense?

There’s just no easy answer to this question. Well, okay, there’s an easy answer — it depends. But that easy answer isn’t really useful. The problem is that several measurements impact your daily revenue from AdSense ads, such as

Unique visits: A visitor is considered unique when she visits your Web site the first time during a given period of time. Depending on the
metric — the measurement used to track visitors on your Web site — that’s used, a visitor might be considered unique the first time he visits
your site in a 24-hour period, the first time in a week, or the first time in an hour. For AdSense, the unique visits measurement is used to help
determine the click-thru rate for ads.
  

Click-thru rate (CTR) is the number of people who click an ad and are taken to the Web page designated for the advertisement. This page is
usually a larger, more colorful ad, the opening page of a Web site, or a page that displays more information about the product or service fea-
tured in the ad.

Average click-through-rate (CTR): The CTR is the actual number of visitors who click through an ad on your Web site. This is important
because you’re paid when users click your AdSense ads.

Average cost-per-click (CPC): The CPC is the amount that advertisers pay each time someone clicks one of their ads. This number varies
widely and is dependent upon the cost of the keyword to which an ad is related. For you, as an AdSense publisher, the CPC is the basis for how
much you’re paid.

Using these three measurements — measurements which are highly variable — you can estimate how much you could make based on some
hypothetical numbers. For example, assume that your Web site gets 1,000 unique visits per day and that the average value of the ads that are displayed on your site each day is $.25 per click (that’s the CPC). Finally, assume that about 2 percent of your 1,000 visitors click through the ads on your site each day. Now, you have numbers that you can work with.

With those hypothetical numbers in place, you can use this equation to estimate how much you might make from your AdSense ads on a given day:
(unique visits x average CTR)average CPC = potential revenue
so
(1,000 x .02)$.25 = $5.00

Using that equation and the hypothetical numbers I’ve defined, you could estimate that you’d make $5.00 per day, or $150.00 per month. Again, however, that’s assuming your numbers are exactly what I’ve defined here, and they probably won’t be — these are completely fictional numbers used solely for the purpose of example.

Any change in those numbers — more or less visitors, higher or lower CTR, or more or less average CPC — results in different numbers.
I can hear you wailing in frustration — “So what can I realistically expect to earn with AdSense?” I understand your desire for solid numbers, but the truth is, I can’t give you an exact figure. More accurately, I can tell you that if your site is well-targeted and has high traffic levels, you can expect to make pretty good money (at least enough to get a check every month). And if your site traffic is slower or your site isn’t as highly targeted, you might be lucky to make enough to pay for your Web site hosting each month.

In an effort to keep costs down, Google doesn’t release payments until you’ve earned $100 or more in ad revenues. If you make less than $100 in a given month, your earnings will be held until you reach the $100 minimum. So, if you’re not making enough money, you’ll get your payment eventually, just not right away.

Fortunately, there are ways to optimize your Web pages so that you get the most possible return on your AdSense ads. I cover those strategies throughout the rest of this book.

See also:

AdWords: The flip side of AdSense 

What is google adsense and why do you use it? 

Is adsense right for you?

Is adsense right for you?

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Even though there are a lot of benefits to using AdSense, it’s not for everyone. Just like not everyone likes the idea of eating chocolate, there will be some who aren’t willing to risk that AdSense ads push (or draw) traffic away from their Web sites.

One good example of this is if you have an e-commerce Web site that features products on every page. Many e-commerce site owners aren’t willing to include advertisements on their pages because the ads can cause site visitors to surf away before they complete a purchase.

What it all really comes down to is to know how badly you would be hurt if a site visitor surfed away from your site. If the damage would be like cutting off your left hand, you probably don’t want to include AdSense on your site.

If, on the other hand (the right hand because it’s not been cut off yet), the possibility of a site visitor surfing away wouldn’t cost you any money, AdSense is probably worth considering. To be clear, a certain percentage of site visitors click an ad on a site and then don’t come back, either that day or at all. But that percentage is likely to be very small. If you won’t lose money if they don’t come back, why not try to make a little money?

Jenn Savedge, the owner of the blog The Green Parent (http://www.thegreenparent.com/), doesn’t use AdSense. She says, “I want to have complete control over the products that are advertised on my site. I don’t want it to appear as though I am endorsing products when I am not.” And that’s a valid reason to decide against using AdSense.

A good rule of thumb is generally that all content-only sites can afford to have AdSense ads displayed on some, if not all, pages on the site. Sites that sell stuff? Well, that’s a little trickier, but if you have pages that don’t contain links to purchase products (like product review pages, or articles that extol the value of a particular product or group of products), you can probably feel pretty secure about including AdSense ads on those pages.

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Source: Google adsense
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What is google adsense and why do you use it?

AdSense is an advertising program that anyone who publishes a Web site can use to generate income for their Web site. But there’s one small condition — Google must approve your site before ads are shown on your site.

A longer explanation is that AdSense is an ad-placement program that utilizes Google’s proprietary search capabilities to determine the best placement for ads that are purchased through the Google AdWords program.  

AdSense is contextual advertising, or ads that appear in the context of surrounding content. What this means for you is that AdSense ads are related to the content of the pages on which those ads appear.

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It sounds complicated, I know. And really it can be very complicated, but the bottom line is that with AdSense, you can place ads on your Web site that are targeted to the content of your site. So, if your site is about Chinese Crested dogs, ads for Web-based human resources applications don’t show on your site.

In return for placing those ads on your site, you’re paid a small amount each time one of your site visitors clicks an ad, and in some cases, even when site visitors just see the ads.

Okay, so AdSense is (in essence) an advertising program. But why would you want to use it? Well, for the money, of course. AdSense is an easy way to generate income from your Web site, even if you’re not selling anything on the site.

And while creating income is the most likely reason that publishers use AdSense, it’s not the only one. Some publishers use AdSense as a means of making their Web site more valuable to site visitors.

Anyone who displays an AdSense ad is considered a publisher, whereas anyone who purchases the ads that are displayed through AdSense is an
advertiser.

Now, this is where a lot of debate usually begins. Experts (who are usually people who know a lot just about a given subject) tend to disagree about the value of any type of advertising on your Web site. Some experts say that any advertisement that takes people away from your Web site is a bad thing. Others say that ads are okay, in the right places.

When placed properly, AdSense ads can add value to your Web site by pointing users to other resources related to the topic of your site. This means they’ll probably surf away from your site at some point. But if your site is well built (which is essential if you intend to grow traffic over time), it’s likely that users will come back to your site again in the future.

The value here is that users not only get what they’re looking for, but you get return traffic; and because you’re using AdSense to help those users find the information they need, you’re also making a little extra money in the process.

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Source: Google adsense
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AdWords: The flip side of AdSense

AdSense is one-half of an advertising duo that Google has cooked up. The other half is Google AdWords,  a  pay-per-click  keyword  advertising program. (How smart is that? Having both advertisers and publishers as your customers!) In a pay-per-click advertising program, advertisers place ads based on keywords that are related to their content. (Keywords, in this context, means key terms or words that are commonly associated with a given subject, topic, service, or product.)

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In pay-per-click advertising, advertisers create short,  text-based  ads  that  are  very  closely related  to  chosen  keywords,  and  then  allow those ads to be shown on other people’s Web sites that feature (in some way or another) the chosen keyword. The advertiser agrees to pay
up to a certain dollar amount — called a bid — each time a Web site visitor clicks on the ad.

Thus, the term pay-per-click. The bid amount an advertiser placed on a keyword  is  usually  determined  by  two  factors: the budget and the popularity of the keyword. The advertisers themselves set the daily budget for  each  advertisement  —  one  built  around how much they are willing to pay if someone clicks the ad. The bidding process itself sets how much a keyword is worth — clearly, more popular keywords are going to cost advertisers more.

The  bidding  process  works  much  like  any other auction process, with one minor change. Advertisers bid for placement of their ads by keyword,  but  more  than  one  advertiser  can win.  The  way  it  works  is  that  the  advertiser that has the highest bid has their ads shown in
the most desirable places (both on Google and other Web sites). Bidders with lower bids will still have their ads shown, but in somewhat less
desirable places. The “less desirable” places can still perform very well, and in fact are sometimes  more  coveted  because  they  cost  less, which  means  advertisers  can  afford  to  have their ads shown more often.

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Source: Google adsense
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