Adsense is the other side of Adwords.

It is the program whereby the ads purchased by Adwords customers are displayed on web pages.  These web pages that display google ads "Ads by Google" are called Adsense publishers. 

There are other PPC engines that run programs similar to Adsense:  FindWhat, Enhance and Kanoodle, and perhaps others that I am not aware of. However, it is Adsense that is most popular and is most widely used so we will focus ourselves on Google Adsense.

For a program like Adsense to succeed, a PPC engine needs a huge inventory of ads.  Since Google leads in Adwords, they naturally have the biggest inventory of ads to show not just in the SERPs  (Search Engine Results Page) but also in the content network.

When users do a seach, they are presented with the organic results of the page.  Some of these sites display Google ads inside their pages.  The ads are called contextual ads, meaning, they are related to contents of the page.  If the page is about jewelry, you will find ads related to jewelry.

These publishers are paid by Google everytime a user clicks on the ads.  The amount that the publisher or site owner gets depends on the amount the Google Adwords advertiser paid for that ad.  The higher the Ad price, the higher the commission.  Google does not disclose the exact formula of the pay-out but once you have participated, you will be able to have a rough estimate of how much each click was worth.

Although Google is responsible for serving the contextual ads, you still have  measure of control on what sort of ads will appear on your site. According to Google, the ads they serve are only family-friendly ads.  Their sophisticated algorithm provides different filters for the ads:

Competitive Filter - Allows you to block your competitor's ads.

Contextual Filter - Allows the system to serve only those ads that are related to the essence of your pages.

Editorial Review - Ads undergo review before they are served.

Customizable Default ads- In certain pages where there are no appropriate contextual ads, you have the option to choose your default ads.

You also have some options to customize the look of the ads so that it blends with the design of your website.

The program is free to join.  Anybody with a website can apply as long as he has complied with the Program Policies. It is important to take note of these policies as a violation may mean that your Adsense account be disabled or banned from the program. Here's to give you an idea of what the policies are:

The clicks must be genuine - Artificially or automatically generated clicks are strictly prohibited. Use of robot clickers or having someone click for you are considered fraudulent clicks and is a ground for Google to disable your account.  Obviously, clicking on your own site's ad is strictly probihited.

The clicks must not be encouraged -  Your site can't mention things like "Please click on the ads", "Support the site. Click on the ads", or something similar. Grpahics that bring attention to the ads such as arrows are also not allowed.

The content must adhere to the guidelines - There are some sites that are not allowed. You must have an idea what sort of sites are prohibited: pornographic, gambling or casino, promotion of liquor, hacking, racism, etc.  Sites that use "black hat" SEOs are also not allowed.  For example, keyword stuffing or redirected sites. 

You must also own the copyright to the materials that you publish  on the site.

Site Behavior - The site where the ads are displayed should not have pop-ups or pop-unders. Changing the Google code is also not allowed.

Ad Placement - The ads can be placed anywhere in your page. However, there are some guidelines to observe: maximum 3 ad units per page, no ads on non-content pages, ads may not be served as pop-ups.

Competitive Ads or Services - Your pages cannot contain ads or services formatted to use the same lay-out and colors as the Google ads.

To view the entire Policies, click here.

Ad blocks can be in the form of banners, buttons, towers or inline rectangles.  The following tabel shows the different sizes and the number of advertisements that can be included in each:

Here are some tips that can help you generate more revenue legitimately with Google Adsense. 

 Focus on a theme for each page.  The more focused your page is, the more relevant ads will be served. A content-rich page will attract a lot of advertisers.

 Update and add content to your site often. The more content you have, the more ads you will have.

 Choose the right ad format. Some ad formats are just more popular than others. According to Google, ads with wider formats tend to be more effective. The more effective sizes are:  336 x 280 large rectangle; 300 x 250 inline rectangle; 160 x 60 skyscraper.

  Use the right color scheme. To get more users to notice and be interested in the ads, you must optimize your color palette.  Remember that users have what is referrred to as "banner blindness"; the tendency to ignore banner ads. Google recommends using the same colors as the color scheme of your site as users tend to be turned by visually offensive ads. Let's say your site is predominantly light or pastel-colored, putting red banners would stand out but would not be appealing. Seasoned Adsense publishers recommend blending the ad color palette with that of your background.

  Use multiple Adsense blocks. You are allowed a maximum of three blocks. You can have an Adsense search and a unit of ad links. Ad links give your users the chance to refine their searches and there is a likelihood that they will find something that they are interested in.

  Limit your filters.  Having too many filters decreases the number of ads that will be served on your pages. Instead of filtering out the top-level domain of an ad (which will prevent any ad from that domain from appearing), filter just the exact destination URL.

  Position the ad blocks in effective places. Google has a heat map that indicates where ads perform the most.  Above the fold ads, meaning the space that can be seen immediately by the user perform better than those below the fold. Ads placed on the left also perform better than those placed on the right.

  Subscribe to the Online Advertiser Sign-up.  Make it easier for potential advertisers to choose your site.  When you subscribe to the  Onsite Advertiser Sign-up, your ad units will display an 'Advertise on this site' link. This will take the  advertisers to an informational landing page with details about your site and the AdWords programme. Advertisers who sign up through this page will be guided to create an ad targeted exclusively specifically to your site. This benefits you as  more advertisers create and target ads to your site, there's more competition among ads which means higher potential earnings for you.

Application for Adsense is Free and straightforward.  Your site will be reviewed and you will receive feedback within 1 to 2 days. If your site has not been indexed by Google, you would have to wait for about 48 hours, (sometimes less) for relevant ads to appear.

	Adsense is the fastest way to monetize your site. I suggest you look at this business model very seriously.   To view the complete Program Policies, FAQ, Google Tips on Optimizing your Adsense campaign, and set-up procedures, click on the button below: Good luck!

For more business models, click here.