Google’s Adsense Algorithm

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Hey, Guys Learner is here with some amazing facts about Adsense algorithm.
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About Adsense Algorithm

Google’s search algorithms get a lot of play and not enough people are paying attention to the fact that Google’s contextual ad network still enjoys a technical superiority to its peers that it long lost in the search relevancy algorithm. Simply put, some search competitors are doing a decent job with search relevancy but still seem to be nowhere when it comes to serving relevant ads.
I’d like to share some of my thoughts on the Adsense algorithm, which I will revisit in detail in the future. Given the secrecy of the sauce, I will not try to prove what is and what is not the Google Adsense algorithm and will take the approach that any SEO worth his salt should and speculate as to what the algorithm should be, and what current technology is capable of.

At its simplest level, I believe the algorithm should, and likely does, work like this:

  1. Attempt to determine page context and serve a contextually relevant ad
  2. Use clickstream data to determine what the user might be interested in and serve an ad that may not be contextually relevant.
  3. Use basic demographic data (e.g. geolocation) to attempt to target ad relevance to the user.

How it works

  • The webmaster who wishes to participate in AdSense inserts the AdSense JavaScript code into a webpage.
  • Each time this page is visited by an end user (e.g., a person surfing the Internet), the JavaScript code uses inlined JSON to display content fetched from Google’s servers.
  • For contextual advertisements, Google’s servers use a web cache of the page created by its Mediabot “crawler” 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. (More details are described in the AdSense patent.)
  • For website-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements, and pays based on cost per mille (CPM), or the price advertisers choose to pay for every thousand advertisements displayed.[22][23]
  • For referrals, Google adds money to the advertiser’s account when visitors either download the referred software or subscribe to the referred service.[24] The referral program was retired in August 2008.[25]
  • Search advertisements are added to the list of results after the visitor/user 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 web pages. To protect against this type of fraud, AdSense publishers can specify the pages on which advertisements should be shown. AdSense then ignores clicks from pages other than those specified. (see Click fraud for more information).

CPC, CTR & RPM

If you’re not familiar with these three acronyms then you’re probably new to the wonderful world of AdSense. Here are the quick and dirty definitions straight from Google:

CPC: cost-per-click (CPC) is the amount you earn each time a user clicks on your ad.

CTR: clickthrough rate (CTR) is the number of ad clicks divided by the number of page views.

RPM: revenue per thousand impressions (RPM) is calculated by dividing your estimated earnings by the number of page views you received, then multiplying by 1000.

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