When Google announced the creation of the AdSense system, there were a lot of people who did not believe the idea would catch on and there was no way it would ever generate significant profits. Yet today, Adsense is probably the most well known pay per click venture in the world and generating more than ONE BILLION dollars in revenue for Google each year! By any measure, Adsense is one of the most profitable systems on the internet. The doubters should have realized that the folks at Google would never make such a massive investment in something unless they had thoroughly analyzed it first and seen the huge profit potential.

Yet the success of Adsense is not because it makes money for Google, its because it is a productive system for all three of the groups of people who use the program. One group is the person who has a product or service to sell and uses the system to increase their sales. The second group is made up of individual web site owners who have realized that they can earn cash by displaying the seller’s ads on their own sites. And, finally, the third group is the millions of people who “surf the web”.

Consider the situation from the first group, the people with a product or service to sell. The normal thing to do is to build a website and try to capture visitors that have searched for a handful of research words relevant to the product. The issue with this is that it only targets the individuals who are already searching for the seller’s item! And, unless they have done a very good job at getting their own web site to the top of the search rankings for that item type, people almost need to be looking for the product by its exact name to ever find the website! The seller’s web site is hopelessly narrow in its scope and the seller does not have the time or cash to create more sites to capture a bigger portion of the potential visitors.

Very few sellers have the resources to create websites to capture more than a handful of search keywords. Googles Adwords system permits these sellers to produce a list of ALL the research keywords they would like to attract traffic for, make small, concise ads for them and then pay Google only when someone clicks on these ads to come to their web site! The more popular the keyword, the more it will cost the Adwords buyer for those clicks, but a daily budget can be set and changed at any time. This provides a huge increase to the seller’s marketing effectiveness on the web and allows the Adwords buyer to literally “buy” visitors to their web site!

The seller also can choose whether to display their ads only in the Google search results page, or also on something called the “Content Network”. By using the content network, the small ads the seller has created will appear on websites that have content related to what their ad is about! Many sellers have figured out that this generates additional streams of traffic to their websites. The content network allows sellers to attract internet surfers who were not searching for or even thinking about their product. It is much like using a brightly colored box to attract the attention of shoppers walking down the aisles of the local grocery store. Once a seller taps into this huge additional source of traffic, their sales expand dramatically!

So who runs this “Content Network”? It is the second group, the Adsense publisher. These people are individual website owners who have realized that, by agreeing to display Google ads, they are able to generate extra income from clicks on those advertisements. The more traffic their website has, the more clicks there will be on the Adsense ads in it. Publishers have found that a few low traffic websites can each create a few dollars a month in Adsense revenue, while other much more popular sites can very easily create hundreds of dollars a month.

It did not take people long to figure out that they could specialize in the creation of these Adsense websites and potentially make a lot of cash! However this motivation is the real genius of the Adsense system! Instead of sellers having to work alone to increase their own sales, they now have thousands of Adsense publishers searching for every way possible to create clicks to get potential buyers to their websites! It would be impossible for these sellers, Google or any other single organization to duplicate the drive, creativity and imagination behind this effort to increase clicks!

The third group, the web surfer, is more and more the beneficiary of all this activity. There was a time when web surfing could get frustrating because many of the websites in the search results just contained a bunch of Adsense ads and nothing else. However Google has become really efficient at weeding out these sites and, these days, a site has to have great, relevant info on what is being searched for to remain at the top from the search results for a given keyword. You can find sites that only display Adsense ads, but successful Adsense sites also provide good information to the visitor.

So the Adsense system truly does benefit all three from the groups involved: the Adwords buyer with a item or service to sell, the Adsense publisher who profits from sending visitors to the vendor and, possibly most of all, the web surfer whose time on the internet is more enjoyable and educational than ever before. This system that many thought would never work will just get larger in the future and that will be to the profit of all of us!

Cole Ossiant has specialized in websites on internet marketing, fitness and weight loss, his latest website www.giantmountainbikes.org evaluates and lists the best Mt Bicycle Giant.

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