How does it work

Google Adsense provides you with a number of ad formats - image or text based. Implementing AdSense is very easy. You specify your preferences and JavaScript is then generated which you copy and paste into your page source code where you would like the ad to display. You can use the same JavaScript code on any of your websites.

Each time the page is viewed, the AdSense bot queries Google. If the page isn't listed in Google or has changed, then the bot will scan the page to determine what ads to display. The Adsense bot can be easily identified in your server logs - it's called Mediapartners-Google/2.1

Where does Google get the ads from?

The ads are drawn from the Google AdWords program. Google AdWords is a self serve program allowing advertisers to create their own ads and select keywords and phrases to bid on - it's a PPC (Pay Per Click) setup. Advertisers can specify if they want to appear in the Google SERP's (Search Engine Results Pages) and/or on participating publisher sites, such as Taming the Beast.net.

Basically, if the page you are implementing AdSense code on is about web marketing (with that term appearing throughout) and an advertiser has specified "web marketing" as one of the terms they wish to bid on, then that ad may appear on your site. 

Actually, it's a little more complex then that - it also depends on the popularity of the page, where the code is placed and a number of other of factors as to whether that ad is shown. If the page is popular, that increases the chances of getting higher bid ads generated on that page. Like Google's general ranking algorithm, the Adsense one is very intricate.

Even though there are many processes that go on behind the scenes, the delivery of AdSense ads is very quick - and in my opinion, very accurate; although it can take a little while for Google to get the "gist" of the page. If you look on the right hand side of this page, you'll see AdSense advertising. I haven't specified those ads, Google has generated them. As you can see, a high degree of customization can be achieved. 

How much revenue can I generate with Adsense?

You receive a percentage of the amount paid by advertisers for each click on an ad. Unlike other networks, Google doesn't state what that percentage is, and I speculate it varies, but it does appear to be a generous share.

As to how much you'll make, this is a "how long is a piece of string?" type question. There are no limits. I personally know people who are generating 5 figure monthly checks by using AdSense. As for how much I make, well that's a secret :) - it's not 5 figures per month, but more than enough to keep me interested in using it as a method of revenue generation - even more so now after having read and implemented some of the strategies in Joel Comm's AdSense strategies book - but more on that later.

Revenue generation will be dependent on a number of factors:

• The number of pages viewed per day
• The topic of your content
• The price paid by the advertiser for each click
• The number of people who click on the ads

This doesn't mean to say that if you only generate a few hundred page views a day, you'll receive a pittance. In fact, light traffic sites can generate substantial revenue if their topic covers a very competitive market. 

While you ascertain from Google how much advertisers in your category are paying per click, you can draw a comparison by using the Overture bid tool . As an example, type in "web marketing". You'll see a list of advertisers and how much they are prepared to pay for each click. Pretty amazing isn't it? To be truly gob-smacked, type in "web hosting". Yep, that's right, that's how much some advertisers are willing to pay per click.

Google issues checks approximately 30 days after the end of each calendar month if you've earned US $100 or more. If you've earned under that, the balance is rolled over to the next month.