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Tag Archives: money

What is Google AdSense



There is so much talk about how the web changes traditional business models.  In the most basic sense, a business model is the method of doing business by which a company can sustain itself — that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.  

Radio and later television programming has been broadcasted over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers (and their agencies), and listeners or viewers.     Who makes money and how much is not always clear at the outset.     The bottom line depends on many competing factors.   Internet commerce gave rise to new kinds of business models.   The web is also likely to reinvent tried-and-true models. Advertising is a perfect example.  The Web has popularized the advertising model and broadened its applicability to a wide array of goods and services.

Advertising Model

The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content (usually, but not necessarily, for free) and services (like email, IM, blogs) mixed with advertising messages in the form of banner ads. The banner ads may be the major or sole source of revenue for the broadcaster. The broadcaster may be a content creator or a distributor of content created elsewhere. The advertising model works best when the volume of viewer traffic is large or highly specialized.

What is Google AdSense?

AdSense is an ad serving application run by Google Inc.  Website owners can enroll in this program to enable text, image, and video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis.     In Q1 2010, Google earned US$2.04 billion ($8.16 billion annualized), or 30% of total revenue, through AdSense.

Google’s earns most of its revenue by allowing other website owners to advertise on their search result pages. All this is managed through a program they call AdWords.

Now individuals can earn a share of the revenue that Google earns from AdWords by displaying these same text ads on their site.  In other words, they’re helping Google advertise and get paid a percentage of what Google earns.    This program is called AdSense.

Every website owner should at least consider the program.  Even if the site is just for information purposes, the owner can still participate and make decent money with AdSense — or at least enough to fund his website. 


How AdSense works?

  • The webmaster inserts the AdSense JavaScript code into a webpage.
  • Each time this page is visited, the JavaScript code display content fetched from Google’s servers.
  • Google’s servers use a cache of the page to determine a set of high-value keywords. If keywords have been cached already, advertisements are served for those keywords based on the AdWords bidding system.
  • For site-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements.
  • Search advertisements are added to the list of results after the visitor performs a search.
  • Because the JavaScript is sent to the Web browser when the page is requested, it is possible for other website owners to copy the JavaScript code into their own webpages. To protect against this type of fraud, AdSense customers can specify the pages on which advertisements should be shown. AdSense then ignores clicks from pages other than those specified.

How much can a site owner earn with AdSense?

A site owner will earn per ad that is clicked, the commission he receives per click depends on how much advertisers are paying Google for the particular ad.    The site owner will earn a share of that amount.  The earnings range from 2 cents to $15 per click, and he can login to his account at any time and see the total amount of revenue he has generated that day, week, month, year, etc.

What is Web 2.0

Web 2.0

Introduction to Web 2.0

Web 2.0 is about online interactivity and linking people through web technologies.  In a sense Web 2.0 is a buzzword used to signify new and developing Web technologies. In addition to the widely recognized sites, there are also many thousands of websites that take advantage of Web 2.0 technologies.  The concept of Web 2.0 is a move away from static websites to a more interactive and dynamic World Wide Web.

Internet users no longer want a one-way interaction with a web page. Visitors are looking for a chance to get involved though user-friendly interface. Whether to leave comments upload photos share music or to be involved in a community, it is clear that the needs of the user are evolving as quickly as the Internet itself.

A Web 2.0 site gives its users the free choice to interact or collaborate with each other in a social media dialogue as creators of user-generated content in a virtual community, in contrast to websites where users (consumer) are limited to the passive viewing of content that was created for them.

The Rise of Web 2.0

The term began its rise in popularity when O’Reilly Media and MediaLive hosted the first Web 2.0 conference in 2004. In their opening remarks, John Battelle and Tim O’Reilly outlined their definition of the “Web as Platform”, where software applications are built upon the Web as opposed to upon the desktop.

Key Web 2.0 services/applications:

There are a number of Web-based services and applications that demonstrate the foundations of the Web 2.0 concept, and they are already being used to a certain extent in education.  These include social-networking sites, blogs, wikis, video-sharing sites, hosted services, content syndication, podcasting and content tagging services.     These are not really technologies as such, but services built using the building blocks of the technologies and standards of the Internet and the Web.


An example of a Web 2.0 Social Networking application


LinkedIn      (Relationships Matter)

LinkedIn is a business-oriented social networking site. Founded in December 2002 and launched in May 2003, it is mainly used for professional networking. As of 9 August 2010 (2010 -08-09), LinkedIn had more than 75 million registered users, spanning more than 200 countries and territories worldwide. The site is available in English, French, German, Italian, Portuguese and Spanish.


 Some LinkedIn facts

  • The site has over 75 million members
  • A new member joins approximately every second
  • Executives from all Fortune 500 companies are members


With 75 million users, LinkedIn is ahead of its competitors Viadeo (30 million) and XING (9 million).  The membership grows by a new member approximately every second.  About half of the members are in the United States and 11 million are from Europe. With 3 million users, India is the fastest-growing country as of 2009.  The Netherlands has the highest adoption rate per capita outside the US at 30%.  LinkedIn recently reached 4 million users in UK and 1 million in Spain.


The purpose of the site is to allow registered users to maintain a list of contact details of people they know and trust in business. The people in the list are called Connections. Users can invite anyone (whether a site user or not) to become a connection.    LinkedIn also allows users to research companies with which they may be interested in working. When typing the name of a given company in the search box, statistics about the company are provided. These may include the ratio of female to male employees, the percentage of the most common titles/positions held within the company, the location of the company’s headquarters and offices, or a list of present and former employees.

The feature LinkedIn Answers, similar to Yahoo! Answers, allows users to ask questions for the community to answer. This feature is free and the main difference from the latter is that questions are potentially more business-oriented, and the identity of the people asking and answering questions is known.

The searchable LinkedIn Groups, feature allows users to establish new business relationships by joining alumni, industry, or professional and other relevant groups. LinkedIn groups can be created in any subjects and by any member of LinkedIn. Some groups are specialized groups dealing with a narrow domain or industry whereas others are very broad and generic in nature.

In October, 2008, LinkedIn revealed plans to opening its social network of 30 million professionals globally as a potential sample for business-to-business research. And, in doing so it’s testing a potential social-network revenue model-research that to some appears more promising than advertising.

 Application Platform

In October, 2008, LinkedIn enabled LinkedIn has launched its OpenSocial-based application platform called InApps – an answer to the platforms found on social networks like Facebook and MySpace which is called “applications platform” that allows other online services to be embedded within a member’s profile page. For example, among the initial applications were an Amazon Reading List that allows LinkedIn members to display books they are reading, a connection to Tripit, and a Six Apart, WordPress and TypePad application that allows members to display their latest blog postings within their LinkedIn profile.

Apps won’t be allowed to use third party ad networks – instead, they’ll have to work with LinkedIn’s ad system and will be allowed to charge users for individual goods, and can also implement a paid subscription service (launch partner Box.net is using this model).

LinkedIn and Business

LinkedIn is the most powerful social networking site to help grow business.  It differs from Twitter, Facebook and YouTube in that it focuses on business.     If someone (whether a professional or business owner) wants to hang with the big players—a place where connections are made, leads are generated, and deals go down—then he needs to spend more of his time on LinkedIn.      LinkedIn has become an essential tool for employers for headhunting and employee validating, and is used by business-to-business (B2B) marketers seeking for potential partners and buyers.

Business organizations usually generate and promote their business in LinkedIn by creating a company profile; it will list everyone who works there and some information about the company and make the company looks complete.

Business also starts groups and promotes them through discussions and asking questions.  With Groups, it can build thought leadership, share expertise, email newsletters, market its brand and grow its network.