is an advertisement application run by Google.
Website owners can enroll in this program to enable
text, image, and more recently, video advertisements
on their websites. These advertisements are administered
by Google and generate revenue on either a per-click
or per-impression basis. Google is also currently
beta-testing a cost-per-action based service.
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.
the advertisements into a participating website.
If the advertisements are included on a website
that has not yet been crawled by the Mediabot,
AdSense will temporarily display advertisements
for charitable causes, also known as public service
announcements (PSAs). (The Mediabot is different
from the Googlebot, which maintains Google's search
Many websites use AdSense to monetize their content.
AdSense has been particularly important for delivering
advertising revenue to small websites that do
not have the resources for developing advertising
sales programs and salespeople. 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:
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