About Google Adsense

Google AdSense is a program run by Google that allows publishers in the Google Network of content sites to serve automatic text, image, video, or interactive media advertisements that are targeted to site content and audience. These advertisements are administered, sorted, and maintained by Google, and they can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering (also owned by Google).^[2] In Q1 2011, Google earned US $2.43 billion ($9.71 billion annualized), or 28% of total revenue, through Google AdSense.

Overview

Google uses its Internet search technology to serve advertisements based on website content, the user's geographical location, and other factors. Those wanting to advertise with Google's targeted advertisement system may enroll through Google AdWords. AdSense has become one of the popular companies that specializes in creating and placing banner advertisements on a website, because the advertisements are less intrusive and the content of the advertisements is often relevant to the website.
Many websites use AdSense to monetize their content; it is the most popular advertising network.^[4] AdSense has been particularly important for delivering advertising revenue to small websites that do not have the resources for developing advertising sales programs and sales people to generate revenue with. To fill a website with advertisements that are relevant to the topics discussed, webmasters place a brief HTML code on the websites' pages. Websites that are content-rich have been very successful with this advertising program, as noted in a number of publisher case studies on the AdSense website. AdSense publishers may only place three ad units per page.
Some webmasters put significant effort into maximizing their own AdSense income. They do this in three ways:^{[citation needed]}

1. They use a wide range of traffic-generating techniques, including but not limited to online advertising.
2. They build valuable content on their websites that attracts AdSense advertisements, which pay out the most when they are clicked.
3. They use text content on their websites that encourages visitors to click on advertisements. Note that Google prohibits webmasters from using phrases like "Click on my AdSense ads" to increase click rates. The phrases accepted are "Sponsored Links" and "Advertisements".

The source of all AdSense income is the AdWords program, which in turn has a complex pricing model based on a Vickrey second price auction. AdSense commands an advertiser to submit a sealed bid (i.e., a bid not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid. Google currently shares 68% of revenue generated by AdSense with content network partners, and 51% of revenue generated by AdSense with AdSense for Search partners.

Criticism

There have been numerous complaints reported about the difference in treatment that a publisher is receiving from Asia against one from the US.^{[22][not in citation given]}
Due to alleged concerns about click fraud, Google AdSense has been criticized by some search engine optimization firms as a large source of what Google calls "invalid clicks", in which one company clicks on a rival's search engine advertisements to drive up the other company's costs.^[23]
To help prevent click fraud, AdSense publishers can choose from a number of click-tracking programs.^{[citation needed]} These programs display detailed information about the visitors who click on the AdSense advertisements. Publishers can use this to determine whether or not they have been a victim of click fraud. There are a number of commercial tracking scripts available for purchase.^{[citation needed]}
Millions of webmasters and website owners depend on revenue generated from Google AdSense but the company can be dishonest and manipulative in reporting in that it provides estimates of revenue earned with a small disclaimer that the finalized earnings may be slightly lower than estimated. However, the amount deducted can be 50% or even 100% (deducted as "invalid clicks"), a gross manipulation of AdSense publishers.
The payment terms for webmasters have also been criticized.^[24] Google withholds payment until an account reaches US$100,^[25] but many micro content providers^{[citation needed]} require a long time—years in some cases—to build up this much AdSense revenue. However, Google will pay all earned revenue greater than US$10 when an AdSense account is closed and not disabled. On the other side Google bills its customers (API users for example) monthly, in increments as low as a few cents.^{[citation needed]}
Many website owners complain that their AdSense accounts have been disabled just before they were supposed to receive their first paycheck from Google.^{[citation needed]} Google claims accounts have been disabled due to click fraud or forbidden content, but have offered no proof of this.^{[citation needed]} An automated email is sent to the publisher's owner which offers no reasoning, or options but a link to file an appeal.^{[citation needed]} In the email, Google states that "Because we have a responsibility to protect our AdWords advertisers from inflated costs due to invalid activity, we've found it necessary to disable your AdSense account. Your outstanding balance and Google's share of the revenue will both be fully refunded back to the affected advertisers."^{[citation needed]} The revenue generated - whether legitimate or not - is taken, and all complaints are deferred.^{[26][not in citation given]}
Google came under fire when the official Google AdSense Blog showcased the French video website Imineo.com. This website violated Google's AdSense Program Policies by displaying AdSense alongside sexually explicit material. Typically, websites displaying AdSense have been banned from showing such content.^[27]
It has been reported that using both AdSense and AdWords may cause a website to pay Google a commission when the website advertises itself.^[28]
In some cases, AdSense displays inappropriate or offensive ads. For example, in a news story about a terrorist attack in India, an advert was generated for a (presumably non-existent) educational qualification in terrorism.^[29]
AdSense uses tracking cookies that are viewed by some users as a threat to privacy.^[30] Webmasters that use AdSense must place the appropriate warning in the privacy policy page.^[31]