Adsense is one of the oldest methods of making money with a web site or blog. Text or banner ads get placed automatically on a site through the connection to Google's ad delivery servers and visitors see site or personally related ad content to match their interests.Adwords versus Adsense
AdWords is an advertising method for clients to place ads within the Google search results pages pointing at their web site. These promote their goods or services alongside personalized Google shopping results and a tailored search results page.
Adsense on the other hand is only used on external sites not own usually owned by Google. Google has a wide network of publishers for their Adsense advert network. Most site owners with approved types of content can apply for a publisher id and later place ad blocks in positions on their web pages.
Approved Content
Most sites qualify for Adsense publication, but a few are automatically excluded. These include sites promoting gambling, adult content, firearms sales and other undesirable content in Google's eyes.
Revenue Model
The revenue model for Adsense varies depends on the niche involved. Different niches are more popular with advertisers and therefore Google charges more to offer ads on those niches. Accordingly, such niches pay out more for each time a visitor clicks on an advert.
The revenue per 1,000 visitors – known as CPM or cost per mile – is calculated based on an average of how many visitors clicked on adverts displayed on a given web site. On ad may pay 10c per click, with 30 people clicking on an advert out of the initial 1,000 visitors during a month. The revenue generated would therefore be approximately $3.00 (10c x 30 people).
Different Niches, Different Payouts
Over time, it's possible to for a web site owner to get a rough idea what a certain niche typically pays with Adsense. For instance, financial-based web sites tend to do very well because they may include adverts for credit cards, debit cards, checking accounts or brokerage accounts to just name a few.
On the other hand, if you publish a site on tropical fish, then only fish supplies, pet stores and other related ads would really have appeal for visitors and there aren't too many such companies buying ads on Adsense. Alternatively, Adsense can switch to publishing ads related to what Google knows about the visitor and/or web sites they have visited recently.
Alternative Revenue Streams
The best revenue generating option depends largely on the niche or sub-niche that the site is focused around. Google usually keeps roughly 75% of the advertising revenue despite the fact that the site owner acts as the publisher. Clearly this is not a great slice of the action.
Quite often, an affiliate deal for commission per sale can work better if the affiliate is closely linked to the subject matter of the page that promotion is placed on or the site overall. However, sales commissions are far more volatile, subject to holiday seasons, etc.
Sometimes a heavy focus on Adsense can take the attention away from relevant affiliate offers that would generate more. In some cases, site owners can have success moving the Adsense ad blocks further down the page and placing the affiliate product offer banner higher above the fold. It pays to experiment with offers, ads and positioning.
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