If you look at the Internet a few years back, you’ll see that advertising was done in a way that was very similar to other types of media like television, or actually, more like what you see in a newspaper. 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 an ad for whatever company was paying for ads on your space. But there was a problem with this type of advertising. It really wasn’t exploiting the fact that the ads weren’t in some newspaper, but were instead presented over the Internet. You’ve probably noticed a lot of things like this over the pages you’ve browsed. You’re looking at an on-line shop, looking for a watch, but you get a banner that advertises 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. Then, when you sign up for Google AdSense, you will insert a small piece of code into your webpage and Google will make sure that at your specified location, a banner will appear, presenting ads relevant to the contents of your site. It’s very easy for Google to do this because Google is a search engine company. It searches for keywords on your page, searches the database of websites to find anything related to your page and preview: a targeted ad. Your webmaster charges a fee for each visitor who clicks on an AdSense banner on your site. Now that’s bound to happen more often than 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?). But, it's also great for people who want to advertise on it. And it’s because of the same reason. The great thing about Google AdSense is that all the content in the banner is relevant. This relevancy is the key to the program's success, and also the reason why everyone remains happy. Each advertiser has a relevant ad, the publisher monetizes their content and Google charges them. As always, Google has set some high standards for its AdSense program, both in terms of shape and functionality. You can’t have more than two such banners on your website, and Google only inserts text in these banners. An added benefit is that AdSense advertising is less intrusive than regular advertising. But this also means you should position the banner better because it’s possible that visitors might miss it altogether. In the end, Google AdSense is an advertising PLATFORM that is unique because the ads are relevant to the content on the site. Everyone that wants to advertise pays charges to Google for it. Anyone who wants to place ads on their site or YouTube does so through AdSense, a process that is paid for by Google. All transactions are run on Google PLATFORM, 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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