Google AdSense

Last updated

Google AdSense
Developer(s) Google
Initial releaseJune 18, 2003;20 years ago (2003-06-18) [1]
Operating system Cross-platform (web-based application)
Type Online advertising
Website www.google.com/adsense

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can 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). [2] In Q1 2014, Google earned US$3.4 billion ($13.6 billion annualized), or 22% of total revenue, through Google AdSense. AdSense is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. [3] This program also operates on HTTP cookies. In 2021, over 38.3 million websites use AdSense. [4]

Contents

Overview

Google uses its 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 Google Ads. AdSense has become one of the most popular programs specializing in creating and placing banner and responsive ads on websites and blogs. Responsive ads [5] adjust themselves based upon user's device size. These advertisements are less intrusive and the content of the advertisements is often relevant to the website. Many websites use AdSense to make revenue from their web content (website, online videos, online audio content, etc.), and it is the most popular advertising network. [6] AdSense has proved particularly useful for generating advertising revenue for small websites that do not have sufficient resources or other major sources of revenue. To display contextually relevant advertisements on a website, webmasters place a brief JavaScript code on the website's 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. Google has removed the policy of limiting AdSense ads to three ads per page. Now, AdSense publishers can place several AdSense ads on a page given there is sufficient content on a webpage. According to Google guidelines on ensuring proper ad placement, [7] advertising and promotional material should not exceed page content.

Some webmasters put significant effort into maximizing their AdSense income. They do this mainly by following [8] best practices:

  1. They produce good quality content that attracts and engages users and provides a good user experience.
  2. They follow webmaster guidelines.
  3. They avoid flooding their website with advertisements.
  4. They do not try methods that encourage users to click ads. Google prohibits webmasters from using phrases like "Click on my AdSense ads" to increase click rates. The phrases accepted are "Sponsored Links" and "Advertisements".
  5. They do not link or redirect to websites with a poor reputation.

The source of all AdSense income is the Ads program, which in turn has a complex pricing model based on a Vickrey second price auction. AdSense requires 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 revenue generated by AdSense with content network partners, and 51% of revenue generated by AdSense with AdSense for Search partners. [9] On June 18, 2015, Google announced rebranding of AdSense with a new logo. [10]

AdSense logo from 2015 to 2018 Adsense rebranded with a new logo.png
AdSense logo from 2015 to 2018

History

Google launched its AdSense program, originally named "Content targeting advertising" in March 2003. [11] The AdSense name was originally used by Applied Semantics, a competitive offering to AdSense. The name was adopted by Google after Google acquired Applied Semantics in April 2003. [12] Some advertisers complained that AdSense yielded worse results than Google Ads, since it served ads that related contextually to the content on a web page and that content was less likely to be related to a user's commercial desires than search results. For example, someone browsing a blog dedicated to flowers was less likely to be interested in ordering flowers than someone searching for terms related to flowers. As a result, in 2004 Google allowed its advertisers to opt-out of the AdSense network. [13]

Paul Buchheit, the founder of Gmail, had the idea to run ads within Google's e-mail service. But he and others say it was Susan Wojcicki, with the backing of Sergey Brin, who organized the team that adapted that idea into an enormously successful product. [14] By early 2005 AdSense accounted for an estimated 15 percent of Google's total revenues. [13] In 2009, Google AdSense announced that it would now be offering new features, including the ability to "enable multiple networks to display ads". In February 2010, Google AdSense started using search history in contextual matching to offer more relevant ads. [15] On January 21, 2014, Google AdSense launched Direct Campaigns, a tool where publishers may directly sell ads. This feature was retired on February 10, 2015.

Types

Content

The content-based advertisements can be targeted at users with certain interests or contexts. The targeting can be CPC (cost per click) or CPM (cost per thousand impressions) based, the only significant difference in CPC and CPM is that with CPC targeting, earnings are based on clicks while CPM earnings recently are actually based not just per views/impression but on a larger scale, per thousand impressions, therefore driving it from the market, which makes CPC ads more common.

There are various ad sizes available for content ads. The ads can be simple text, image, animated image, flash video, video, or rich media ads. At most ad sizes, users can change whether to show both text and multimedia ads or just one of them. As of November 2012, a grey arrow appears beneath AdSense text ads for easier identification. Google made a policy update regarding the number of ads per page, the three ads per page limit has been removed. [16]

AdSense for search allows publishers to display ads relating to search terms on their site and receive 51% of the revenue generated from those ads. [9] AdSense custom search ads can be displayed either alongside the results from an AdSense Custom Search Engine or alongside internal search results through the use of Custom Search Ads. Custom Search Ads are only available to "white-listed" publishers. Although the revenue share from AdSense for Search (51%) is lower than from AdSense for Content (68%) higher returns can be achieved due to the potential for higher Click Through Rates.

Video

AdSense for video allows publishers with video content (e.g., video hosting websites) to generate revenue using ad placements from Google's extensive advertising network. The publisher is able to decide what type of ads are shown with their video inventory. Formats available include linear video ads (pre-roll or post-roll), overlay ads that display AdSense text and display ads over the video content, and the TrueView format. [17] Publishers can also display companion ads - display ads that run alongside video content outside the player. AdSense for video is for publishers running video content within a player and not for YouTube publishers.

Link units are closely targeted to the interests of users. Because users directly interact with the ad unit, they may be more interested in the ads they eventually see.

AdSense publishers are paid for clicks on the ads that are linked from link unit topics, not for clicks on the initial topics themselves. The ads on the linked page are pay-per-click Google ads similar to those shown in regular AdSense ad units. Link Units

Discontinued types

Mobile content

AdSense for mobile content allowed publishers to generate earnings from their mobile websites using targeted Google advertisements. Just like AdSense for content, Google matches advertisements to the content of a website — in this case, a mobile website. Instead of traditional JavaScript code, technologies such as Java and Objective-C are used. As of February 2012, AdSense for Mobile Content was rolled into the core AdSense for Content offering to better reflect the lessening separation between desktop and mobile content. [18]

Domains

AdSense for domains allows advertisements to be placed on domain names that have not been developed. This offers domain name owners a way to monetize (make money from) domain names that are otherwise dormant or not in use. AdSense for domains is currently being offered to all AdSense publishers, but it wasn't always available to all. On December 12, 2008, TechCrunch reported that AdSense for Domains is available for all US publishers. [19] On February 22, 2012, Google announced that it was shutting down its Hosted AdSense for Domains program. [20]

Feeds

In May 2005, Google announced a limited-participation beta version of AdSense for Feeds, [21] a version of AdSense that runs on RSS and Atom feeds that have more than 100 active subscribers. According to the Official Google Blog, "advertisers have their ads placed in the most appropriate feed articles; publishers are paid for their original content; readers see relevant advertising—and in the long run, more quality feeds to choose from." [22] AdSense for Feeds works by inserting images into a feed. When the image is displayed by a RSS reader or Web browser, Google writes the advertising content into the image that it returns. The advertisement content is chosen based on the content of the feed surrounding the image. When the user clicks the image, he or she is redirected to the advertiser's website in the same way as regular AdSense advertisements. AdSense for Feeds remained in its beta state until August 15, 2008, when it became available to all AdSense users. On December 3, 2012, Google discontinued AdSense For Feeds program. [23]

How it works

Reception

Some webmasters create websites tailored to lure searchers from Google and other engines onto their AdSense website to make money from clicks. Such websites often contain nothing but a large amount of interconnected, automated content (e.g., a directory with content from the Open Directory Project, or "scraper" websites relying on RSS feeds for content). Possibly the most popular form of such "AdSense farms" are splogs (spam blogs), which are poorly written content centered around known high-paying keywords. Many of these websites reuse content from other websites, such as Wikipedia, to attract visitors. These and related approaches are considered to be search engine spam and can be reported to Google. [28] A Made for AdSense (MFA) website or webpage has little or no content, but is filled with advertisements so that users have no choice but to click on advertisements. Such pages were tolerated in the past, but due to complaints, Google now disables such accounts. There have also been reports of Trojan horses engineered to produce counterfeit Google advertisements that are formatted looking like legitimate ones. The Trojan uploads itself onto an unsuspecting user's computer through a webpage and then replaces the original advertisements with its own set of malicious advertisements. [29]

In May 2014, Hagens Berman law firm filed a national class-action lawsuit against Google, claiming the company unlawfully denies payments to thousands of website owners and operators who place ads on their sites sold through Google AdWords. [30]

There were numerous complaints in online discussion forums about a difference in treatment for publishers from China and India, namely that sites from those locations are required to be active for six months before being eligible for AdSense. [31] [32] [33] Due to alleged concerns about click fraud, Google AdSense has been criticized by some search engine optimization firms as a large source of what Google calls "invalid clicks", in which one company clicks on a rival's search engine advertisements to drive up the other company's costs. [34] The payment terms for webmasters have also been criticized. Google withholds payment until an account reaches US$100, [35]

Google came under fire when the official Google AdSense Blog showcased the French video website Imineo.com. This website violated Google's AdSense Program Policies by displaying AdSense alongside sexually explicit material.[ citation needed ] Typically, websites displaying AdSense have been banned from showing such content. [36] Using both AdSense and Google Ads may cause a website to pay Google a commission when the website advertises itself. [37] In some cases, AdSense displays inappropriate or offensive ads. For example, in a news story about a terrorist attack in India, an advert was generated for a (presumably non-existent) educational qualification in terrorism. [38] AdSense uses tracking cookies that are viewed by some users as a threat to privacy. [39] AdSense terms of service require that sites using AdSense explain the use of these cookies in their privacy policy. [40]

See also

Related Research Articles

Digital display advertising is online graphic advertising through banners, text, images, video, and audio. The main purpose of digital display advertising is to post company ads on third-party websites. A display ad is usually interactive, which allows brands and advertisers to engage deeper with the users. A display ad can also be a companion ad for a non-clickable video ad.

Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of performance-based marketing where the commission acts as an incentive for the affiliate; this commission is usually a percentage of the price of the product being sold, but can also be a flat rate per referral.

<span class="mw-page-title-main">Google Ads</span> Online advertising platform owned by Google

Google Ads is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, and videos to web users. It can place ads in the results of search engines like Google Search, mobile apps, videos, and on non-search websites. Services are offered under a pay-per-click (PPC) pricing model.

Click fraud is a type of fraud that occurs on the Internet in pay per click (PPC) online advertising. In this type of advertising, the owners of websites that post the ads are paid based on how many site visitors click on the ads. Fraud occurs when a person, automated script, computer program or an auto clicker imitates a legitimate user of a web browser, clicking on such an ad without having an actual interest in the target of the ad's link in order to increase revenue. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud.

Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with the advertiser's demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives.

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.

Contextual advertising refers to a form of targeted advertising for advertisements appearing on websites or other digital platforms, such as content displayed in mobile browsers. Contextual targeting involves the use of linguistic factors to control the placement of advertising material. The advertisements are selected and delivered by automated systems, taking into consideration the context of a user's search or browsing behaviour. As advertisers and marketers increasingly prioritise brand safety and suitability, contextual advertising has emerged as a crucial aspect in safeguarding the reputation and value of a brand.

A scraper site is a website that copies content from other websites using web scraping. The content is then mirrored with the goal of creating revenue, usually through advertising and sometimes by selling user data.

Microsoft Advertising is an online advertising platform developed by Microsoft, where advertisers bid to display brief ads, service offers, product listings and videos to web users. It provides pay per click advertising on search engines Bing, Yahoo! and DuckDuckGo, as well as on other websites, mobile apps, and videos.

Keyword advertising is a form of online advertising in which an advertiser pays to have an advertisement appear in the results listing when a person uses a particular phrase to search the Web, typically by employing a search engine. The particular phrase is composed of one or more key terms that are linked to one or more advertisements. The most common form or keyword advertising, focused on payment methods, is pay per click (PPC), with other forms being cost per action (CPA) or cost per mille (CPM).

In Internet marketing, search advertising is a method of placing online advertisements on web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published content.

Website monetization is the process of converting existing traffic being sent to a particular website into revenue. The most popular ways of monetizing a website are by implementing pay per click (PPC) and cost per impression (CPI/CPM) advertising. Various ad networks facilitate a webmaster in placing advertisements on pages of the website to benefit from the traffic the site is experiencing.

<span class="mw-page-title-main">Targeted advertising</span> Form of advertising

Targeted advertising is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting.

Social network advertising, also known as "social media targeting," is a group of terms used to describe forms of online advertising and digital marketing focusing on social networking services. One of the significant benefits of this type of advertising is that advertisers can take advantage of the users' demographic information, psychographics and other data points to target their ads appropriately.

Behavioral retargeting is a form of online targeted advertising by which online advertising is targeted to consumers based on their previous internet behaviour. Retargeting tags online users by including a pixel within the target webpage or email, which sets a cookie in the user's browser. Once the cookie is set, the advertiser is able to show ads to that user elsewhere on the internet via an ad exchange.

Performance-based advertising, also known as pay for performance advertising, is a form of advertising in which the purchaser pays only when there are measurable results. Its objective is to drive a specific action, and advertisers only pay when that action, such as an acquisition or sale, is completed.

Ad rotation is the practice of showing multiple advertisements in a single location on a web page. Ads may be rotated with each new page load, within a single page load, or both. Because the ads are placed in the same location, they are typically the same format.

Google Contributor was a program run by Google that allowed users in the Google Network of content sites to view the websites without any advertisements that are administered, sorted, and maintained by Google.

<span class="mw-page-title-main">Advertising revenue</span> Income from displaying online ads

Advertising revenue is the monetary income that individuals and businesses earn from displaying paid advertisements on their websites, social media channels, or other platforms surrounding their internet-based content. In September 2018, the U.S Internet advertising market was estimated to be worth $111 billion, with market share being held mostly between Google, Facebook, Amazon, and Microsoft. These companies earn revenue through online advertising but also have initiated pathways for individual users and social media influencers to earn an income. Individuals and businesses can earn advertising revenue through advertising networks such as Google AdSense, YouTube monetization, or Outbrain.

References

  1. ↑ Google Expands Advertising Monetization Program for Websites, June 18, 2004, Press Release, Google
  2. ↑ "DoubleClick by Google - Better digital advertising".
  3. ↑ Parker, Pamela (March 22, 2011). "Goodbye "Ads By Google" & Hello "AdChoices" As Google's Backs Industry Label Effort". Search Engine Land . Retrieved January 20, 2015.
  4. ↑ "Websites using Google AdSense" . Retrieved 22 January 2021.
  5. ↑ "About the responsive behavior of display ad units - AdSense Help". support.google.com.
  6. ↑ "Usage of advertising networks for websites". W3Techs. 2012-08-25.
  7. ↑ "Ad placement policies - AdSense Help". support.google.com.
  8. ↑ "AdSense best practice: Set yourself up for success". Google. 2017-04-18. Retrieved 2020-06-10.
  9. 1 2 "Google Form 10-Q, Q2 2010". 2010-07-15. Archived from the original on 30 September 2010. Retrieved 2010-09-08.
  10. ↑ Adsense rebrands with new logo, Preview Tech, June 19, 2015.
  11. ↑ Matt, Cutts. "Google Guy". Web Master World. Archived from the original on 2014-03-04.
  12. ↑ "Google Acquires Applied Semantics". News from Google. April 23, 2003. Retrieved July 12, 2014.
  13. 1 2 Battelle, John (2005). The Search. New York: Penguin. pp. 151–2. ISBN   978-1-85788-361-9.
  14. ↑ Swift, Mike (February 7, 2011). "Susan Wojcicki: The most important Googler you've never heard of". San Jose Mercury News . Retrieved July 12, 2014.
  15. ↑ Pepitone, Julianne (2011-02-12). "Google expands ad targeting methods". CNNMoney.com . Retrieved 2012-07-26.
  16. ↑ "Adsense ads per page limit lifted". Bestparttimejob.in. 22 August 2016. Retrieved 23 August 2016.
  17. ↑ "AdSense for video overview - AdSense Help".
  18. ↑ "Inside AdSense: Mobile becomes a core component of AdSense". Inside AdSense. Retrieved 13 October 2014.
  19. ↑ AdSense For Domains Now Available For All US Publishers, Robin Wauters, Dec 12, 2008, TechCrunch
  20. ↑ Google kills "hosted" Adsense for Domains program , Andrew Allemann, February 22, 2012, Domain Name Wire
  21. ↑ "What is a feed? - AdSense Help". support.google.com. Retrieved 2020-06-10.
  22. ↑ Ghosemajumder, Shuman (2005-05-17). "Official Google Blog: Feed me" . Retrieved 2007-12-29.
  23. ↑ John, Tony (28 November 2012). "AdSense For Feeds going away". Techulator.com. Retrieved 13 October 2014.
  24. ↑ "How AdSense works - Google AdSense Help". support.google.com. Retrieved 2023-01-13.
  25. ↑ "Google AdSense Help Center: What are CPM ads?". 2007-12-29. Archived from the original on 2009-01-22. Retrieved 2007-12-29.
  26. ↑ "Google AdSense Help Center: What is the referrals feature?". 2007-12-29.
  27. ↑ "Google yanks AdSense referral program, offers shoddy surrogate". blog.anta.net. 2008-07-01. ISSN   1797-1993. Archived from the original on 2011-07-23. Retrieved 2008-07-01.
  28. ↑ "Google Webmaster Guidelines" . Retrieved 2012-02-02. If you believe that another site is abusing Google's quality guidelines, please report that site at https://www.google.com/webmasters/tools/spamreport.
  29. ↑ Jah, Benaifer (2005-12-27). "Trojan Horse program that targets Google AdSense ads". TechShout.
  30. ↑ "Google Adsense Class Action Lawsuit". hbsslaw.com. 24 May 2014. Retrieved 1 January 2016.
  31. ↑ "Eligibility to participate in AdSense" . Retrieved 7 December 2011. (Google policy)
  32. ↑ Discussion forum example: complaint about treatment India vs. Pakistan, 2009
  33. ↑ Jawahar, Mahesh (20 February 2012). "Google Adsense and its adventure in India: The real story of Google adsense scam in India!!". Archived from the original on 4 March 2016. Retrieved 29 September 2015. (blog blames Indians for their click fraud scams, does not blame Google)
  34. ↑ Mann, Charles C. (January 2006). "How click fraud could swallow the internet". Wired .
  35. ↑ "When do I get paid?". Google AdSense Help Center.
  36. ↑ "Adult content". Google AdSense Help Center.
  37. ↑ "BE CAREFUL when using both AdSense + AdWords by Google". 2009-02-19.
  38. ↑ "Google's Worst Ads Ever (GOOG)". Business Insider . 2009-08-20.
  39. ↑ "Privacy Concerns adsense". Allaboutcookies.org. Retrieved 13 October 2014.
  40. ↑ "Google AdSense terms" . Retrieved 13 October 2014.
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