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AdSense is an advertising program run by Google. Web site owners can enroll in this program to enable text and image advertisements on their sites. These ads are administered by Google and generate revenue on a per-click basis. Google utilizes its search technology to serve ads based on website content, the user's geographical location, and other factors. Those wanting to advertise with Google's targeted ad system may sign up through AdWords.
It currently uses JavaScript code to incorporate the advertisements into a participating site. If a site which has not yet been crawled by the Googlebot runs AdSense, it will temporarily display advertisements for charitable causes.
Many sites use AdSense to monetize their content and some webmasters work hard to maximise their own AdSense income. They do this in 3 ways
1. They use a wide range of traffic generating techniques including but not limited to online advertising.
2. They build valuable content on their sites. The term valuable here means content which attracts AdSense ads that pay out the most when they get clicked on.
3. They use copy on their websites that encourage clicks on Ads. Note that Google prohibits people from using phrases like "Click on my AdSense ads" to increase click rates. Phrases accpeted 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.
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