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This means that the advertisements it displays are more relevant to the content of the site on which they are posted, and therefore more likely to be clicked by visitors to that site. This is a major innovation in advertising and still fairly uncommon among ad networks, and has proven much more effective at earning money for site owners than untargeted advertisements.

In addition, AdSense provides a variety of ways to customize both the ads’ appearance and the way in which their value is reported, making it a very comprehensive and straightforward provider of relevant advertisements.

AdSense works by instantaneously auctioning off the available advertising spaces on a site to various advertising companies.

The default form of advertisement available from AdSense is CPC, but CPM may also appear on sites if the ad agency chooses the site and wins the auction, but these types of ads cannot be specifically requested by an AdSense user.

The advertisements are targeted by language and geographical location as well as content, and include both large and small businesses in a wide array of categories.

Google chooses not to officially disclose the percentage of profit it takes from what the advertisers pay for its services and ad space. The New York Times, however, calculated from Google’s published financial reports that AdSense partners receive 78.5% of the profits that Google makes off of their ad space.

AdSense accounts are managed by logging into www.google.com/adsense. From this page, users can customize their accounts in a variety of ways. Firstly, they may control whether to enable ad links, the Google search feature, or both. If advertising links are enabled, the site owner may choose whether to show only text ads, or to also allow image and video ads.

AdSense also offers link units and referral buttons, which can be enabled or disabled. Furthermore, the appearance of the enabled ads can be customized from this page. Users may choose the color and template of their ad links and search results so that they are more integrated into the site’s overall appearance and therefore will likely be clicked more frequently.

Another way in which AdSense users can customize the ads that appear on their page is by applying and adjusting several filters, which can be used to filter out competitors’ advertisements, as well as ensuring that content on the site is relevant and appropriate. If users do not feel that many of the ads selected by AdSense are useful, they can also set their own default advertisements or fill the space with a solid color until better ads are available.

Currently, AdSense offers text only, image, video ads, link units, and referral buttons in a variety of shapes and sizes. Note that some ad sizes only support text or images:

The final function of the control panel is to report the users’ earnings through their ads. AdSense offers several ways to customize these reports. Updated hourly, reports on earnings can be sorted by page, date, ad type, and a number of other factors.

Users can create both URL and customized channels in the advanced reporting tab of the control panel. With URL channels, site owners can create clusters of URLs to see which pages or clusters of pages are earning them the most money through advertisements.

Customizable channels allow users to create their own groups of links, allowing them to test, for example, whether their red banner ads or their blue side links generate more clicks so that they can alter the layout of their site accordingly.

To become an AdSense publisher, prospective users must complete a short online application on their website.

After 2-3 days, AdSense will process the application and reach a decision on whether to support the site or sites, as AdSense will support multiple sites for only one user. After they accept, users simply need to log on, select which type of ads they wish to display, and customize their options.

When this is completed, AdSense will generate an html code that site owners can simply paste into their page like any other code. This will allow the advertisements to show in this space. For the first day or two, only public service ads may appear, for which the site owner will not be paid. These can, however, be replaced by the site owner by default ads or a solid color. After Google’s bots have inventoried the site, however, content specific links should begin to show and site owners will be paid for the clicks these links receive.

Continued service from the AdSense network is contingent upon users obeying their terms and conditions, which include not clicking their own ad links, not bribing others to click the links or pointing them out in any way, and not displaying pornography or anything illegal on their site. It is acceptable, however, to have non-Google ads on the site as long as it is clear that they are unrelated to the Google ads.

Receiving payments from this network is fairly simple. AdSense offers both EFT and mailed checks in the user’s specified local currency. When a site owner’s ad revenue reaches $100 or greater, a payment will be issued to that owner within 30 days of the end of that month. If revenues do not reach $100, the account balance is rolled over to the next month and does not expire.