AdSense is Google's contextual advertising network/display ads.
It is a strategy for companies that are mostly information service oriented and or wish to display Pay Per Mil (CPM) vertical sponsors impressions in their own web sites. Publishers large and small may automatically publish relevant advertisements near their content and share the profits from those ad clicks with Google. By adding into your page a code provided by Google, it will set all you need to "rent" an advertising space reserve for vertical sponsors giving your page a complementary and relevant look to your site. Display ads is # 3 strategy with a 36.2% among marketers.
AdSense ad auction formats include:
• Cost per click (advertisers are only charged when ads are clicked on).
• Cost per mil (CPM) advertisers are charged a certain amount per ad impression. Advertisers can target sites based on keyword, category, or demographic information.
AdSense offers a highly scalable automated ad revenue stream which will help some publishers establish a baseline for the value of their ad inventory. In many cases AdSense will be underpriced, but that is the trade off for automating ad sales.
Because the ads are related to what your visitors are looking for on your site or matched to the characteristics and interests of the visitors your content attracts, you may have a way to both monetize and enhance your content pages.
It's also a way for web site publishers to provide Google web and site search to their visitors, and to earn money by displaying Google ads on the search results pages.
