Looking back over the way internet advertising has developed, you’ll see that is was similar to newspaper and TV.

You’d enter a site, and in some location you’d get to see a banner (often these were quite numerous and very large), which would present and ad for whatever company was paying for adds on your space.

One problem exsists with this style of advertising. It really wasn’t exploiting the fact that the adds weren’t in some newspaper, but were instead presented over the Internet.

If you browse many pages, you’ve probably noticed things like this. You’re at an online website shopping for a woman’s watch for your wife, but then you get a banner ad for a car.

While you might, at some later point want to buy a car, right now you’re looking for a watch and it would have surely been nice if the banner were advertising a watch, because then you would have probably clicked it.

Well that’s also what the folks at Google thought of, so they came up with a killer idea. This is knows as Google AdSense, and it’s known as a targeted advertising program

What you do (as a web designer / website owner) is, instead of jumping through hoops to get some banner on your site that your visitors won’t even care about, is you just allocate some region of the screen.

You then sign up for the Google AdSense program, you insert a small snippet of code in your webpage and Google ensures that in the location you specify, a banner will appear, presenting adds relevant to the contents of your site.

Google is a search engine company, which is why it’s easy for them to do this. A targeted ad is presented to you after it looks for related keywords in your page, then searches a database of websites to find one that relates closely to yours.

You (the webmaster) get a fee for each visitor that clicks on an adsense banner on your site. Now that’s bound to happen more often then with a traditional banner because people are actually interested in what’s in that banner (otherwise, they wouldn’t be on your page would they?).

For the people that want to advertise, this does wonders. And it’s because of the same reason. The greatest thing about Google AdSense is that all the content in a banner is relevant.

This relevancy is the key to the programs success, and also the reason why everyone remains happy. While the advertiser gets a relevant ad placed, Google gets a cut from the publisher that earns money from thier content.

Of course, as always, Google has set some high standards for its AdSense program, in terms of looks and functionality. You can’t have more than two such banners on your website and Google only inserts text in these banners.

Adsense advertising is less obtrusive than regular advertising, which is beneficial. Just in case visitors miss the banner, you might want to position it better.

So in the end, Google AdSense is an advertising program that is unique because the ads are relevant to the content on the site. Anyone that wants to advertise pays Google for it. Anyone who wants to place ads on their site does this through AdSense, getting paid by Google in the process.

All transactions are run through Google, and the advertisers and publishers get access to statistics which help them to understand and moderate the effectiveness of their campaign.

The whole process is elegant, simple and effective from anyone in the chain, from site visitors to advertisers, and it’s one of the reasons Google are known for their innovation and new thinking.

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