Making search advertising famous with AdWords, by enabling anyone to be a global online advertiser, Google introduced a program that enables anyone to get into the other side of the advertising business by publishing ads. I say "anyone" reservedly, because Google limits AdSense in certain ways, whereas AdWords is open to anyone with five dollars and a landing page. (See Rubric 6.) This Rubric surveys the AdSense program in an introductory fashion, from the theory of ad syndication to the particular way Google lets Webmasters publish ads. Rubrics 12 and 13 provide more detailed tutorials in applying for the program and publishing ads on your site. The glossary, at the end of the site, includes every important AdSense term you need to know.
The Business of Serving Ads
If you follow tech stocks, and especially if you followed them during the 1990s, you know about the importance of ad revenue to online media sites. Since its inception as a public company, Yahool's quarterly earnings have been largely about the company's advertising revenue. Heck, you don't need to follow Wall Street to understand the connection between on-screen ads and Internet revenue — just go to nearly any newspaper site and watch the pop-ups. Serving ads is big business across all media. In fact, the magazine industry isn't really an editorial industry at all; it's an advertising industry. We readers think of pages of content interspersed with ads, which get in the way of articles and stories. But publishers view it quite differently. To the publisher, ads are the content. Articles and stories are merely the vehicle which drives advertising content into the hands of readers. TV? An ad industry. Programs are excuses for ads. Television is a medium for delivering scheduled advertisements into the home, and that's the only purpose of its Emmy-Award-winning dramas and comedies. (An exception is a few cable channels that earn revenue through subscription fees to cable companies.) The Internet is more complicated because an online business can actually transact a product sale, earn a service commission, or take a content subscription directly from a Web page. Nevertheless, advertising started out as the main business model of the commercial Internet, and it remains one of the three fundamental revenue plans in the Internet space. Old-media though it be, advertising drives business online. Rubric 6 describes how search advertising drives a new-media twist into the heart of old-school blanket advertising used in television and magazines. Instead of built-in irrelevancy, search advertising builds in targeted relevancy. Instead of pushing ads to passive, often sullen recipients, keyword advertising matches business with consumers who are actively looking for something, pulling keyword-related content to their screens. And whereas blanket advertising forces clients to pay for large amounts of irrelevant impressions, search advertising charges only for clickthroughs to the advertiser. The advantages are good for everyone — the advertiser, the consumer, and the search engine serving the ads. The enhanced control and streamlined costs of keyword-based advertising have rocked the business world and are poised to change the face of ad-based commerce on the Internet. Google is really onto something. And with AdSense, you can ride on Google's coattails. AdSense enables Webmasters to share Google's clickthrough revenue derived from the AdWords program. The little effort that's required is covered in the three Rubrics of this part. AdSense is like a big, unexpected gift to Webmasters who, until now, have lacked a nearly effortless way to cut their sliver of the global media pie.
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