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<\/p>\nGenerating a substantial amount of income from your site can be challenging, mostly when you aren’t selling anything. Google AdSense is a popular network that allows most website owners to monetize their page traffic. You can make money without having to deal with advertisers directly irrespective of your niche. It’s a relatively simple concept, but you need to understand some basics. Here is a detailed Google AdSense tutorial to help you turn your existing content into an income-generating strategy.<\/p>\n
It’s merely an ad publishing application by Google that allows you to include ads on your websites and make money. The most outstanding part about this network is that Google handles everything, and you don’t need to worry about collecting the payment. So, how does Google AdSense work? The system connects both publishers and advertisers, and Google acts as the intermediary.<\/p>\n
What happens is that an advertiser will set the minimum amount he is willing to pay for an advert, which acts as the bid price. Google will then display the bid to publishers with the relevant traffic for the ad. For example:<\/p>\n
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If your site visitors click on the ad, you get a portion of the money, and Google takes the rest as commission for their service. The advertising content comes in numerous forms which include;<\/p>\n
It’s worth noting that Google uses the Ad Rank formula to determine which promotional content best suits your site. It involves predicting the click-through rate on your page based on keywords and the previous performance. For instance, if you run a page about pregnant women, you shouldn’t advertise with sports related keywords and\/or pages. Remember that Google wants to ensure that the ad obtains maximum clicks creating a win-win situation for you, the advertiser, and Google.<\/p>\n
Understanding the bid types available will help further answer your question on how does Google AdSense work? The bid types affect your Google AdSense earnings in the following ways;<\/p>\n
It constitutes the amount an advertiser pays for their ad appears a thousand times. The visitors don’t have to click on the ad for you to earn money. The main aim of this bid is to increase brand awareness. Therefore, you only need to load the ad content on your page entirely. However, the bid price may be lower since it doesn’t involve user actions. Here is that formula:<\/p>\n
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(Image credit: Online Advertising Guide<\/a>)<\/p>\n For this, you still get paid for the ad content exposure, but retention time matters. It means that 50% of the ad needs to appear viewable in your site for at least a second. If the impression fails to meet this criterion, then the advertiser may not pay. It thus increases the chances of visitors seeing the ad and therefore bids higher compared to CPM. Here is that formula:<\/p>\n (Image credit: Online Advertising Guide<\/a>)<\/p>\n With this bid type, you only get paid for clicked-on ads. The amount you earn on a click depends on the content’s nature and its value to the advertiser. Here is the CPC formula:<\/p>\nActive View Cost Per Thousand Impressions Active (CPM)<\/h3>\n
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<\/p>\nCost Per Click (CPC)<\/h3>\n
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