In the past, I've talked to affiliates who were happy to receive $5 or $6 CPM (per 1,000 page views). My results from AdSense leave such affiliate revenues far behind.

I've increased my use of AdSense. It's a winner!

If my results are typical, it helps enormously if you build very simple, uncluttered pages so that the ads catch the visitor's eye more than anything else.

AdSense is having a huge impact on the affiliate marketing industry. It's often much easier to generate revenue from AdSense than from an affiliate program.

Weak affiliate merchants will die faster than ever.

If you're a merchant running a lousy affiliate program, now's the time to improve it FAST.


AdSense's advantages

AdSense is simple to join.

It's easy to paste a bit of code into your pages.

It's free to join.

You don't have to spend time finding advertisers.

Google provides well written, highly relevant ads - chosen to closely match the content on your pages.

You don't have to waste time choosing different ads for different pages.

You don't have to mess around with different code for various affiliate programs.

You're free to concentrate on providing good content and Google does the work of finding the best ads for your pages from 100,000 AdWords advertisers.

It's suitable for beginners or marketing veterans.

AdSense provides simple, easy-to-understand stats.

If you have affiliate links on your site, you ARE allowed to add AdSense ads. However, with your affiliate links, you must not mimic the look and feel of the Google ads.

You can filter up to 200 URLs, so you can block ads for sites that don't meet your standards. You can also block strong competitors.

Inevitably, AdSense is competing strongly for space on web sites with all other revenue sharing opportunities.

If you own a small web site you can plug a bit of AdSense code into your site and almost instantly relevant text ads that are likely to appeal to your visitors will appear on your pages.

If you own several sites, you need apply only once. This makes AdSense much simpler than joining a bunch of affiliate programs.

As you can see, I'm really keen on this revenue sharing service.


Disadvantages

One problem is inappropriate ads. You don't want spammy junk advertised on your site. Google's standards probably aren't as high as yours. You can filter out 200 URLs, but in some industries that won't be enough.

The stats Google supplies are inadequate. They're easy to understand at a glance. However, they don't tell you exactly which ads people are clicking on, or which keywords are involved. That's frustrating.

Also, I'd like to be able to identify and block ads that have very low payout rates, without doing a lot of sleuthing and messing around.

The ad panels say "Ads by Google" - free advertising for Google. You don't earn anything if someone clicks on that link.

The minimum payout is $100, which is regarded as too high by sites which don't receive much traffic. That won't worry experienced webmasters.

Also, sites that want to display AdSense ads may not include "other content-targeted and/or text-based ads on the pages displaying AdWords ads." However, human beings review the sites. Rejected sites have been able to appeal successfully.

Another disadvantage is that Google doesn't allow you to share your stats with other webmasters. The AdSense Terms and Conditions say:

"Confidentiality. You agree not to disclose Google Confidential Information without Google's prior written consent. 'Google Confidential Information' includes without limitation: ... (b) click-through rates or other statistics relating to Site performance in the Program provided to you by Google..."

That's really weird. Web site owners need to be able to share such information and discuss successes and failures.

A big disadvantage of the service is that Google doesn't say how much its AdSense partners will receive. You'll just receive an unknown share of the revenue.

Only a company with the goodwill and respect Google has earned could get away with such a cheeky offer.

Google says:

"How much will I earn through this program? The AdWords ads you are able to display on your content pages are cost-per-click (CPC) ads. This means that advertisers pay only when users click on ads. You'll receive a portion of the amount paid for clicks on AdWords ads on your website. Although we don't disclose the exact revenue share, our goal is to enable publishers to make as much or more than they could with other advertising networks."

So the only way to know how much you'll earn is to try it and see. If you want to bail out, all you have to do is remove the code from your site.

Don't put all your eggs in the AdSense basket. If Google discovers fraudulent clicks on ads appearing on your pages, it can dump your site from the service, and refuse to pay you all revenue owed. Some webmasters who claim total innocence have had this happen to them.

Google has made several changes to its AdSense FAQ, clarifying varying things. For example, it IS possible to apply for separate accounts for separate web sites. I've done so, and checked with Google that it's OK in my case. Read the rules - they look ambiguous to me. If in doubt, ask first!

Some time after the launch of AdSense, Google added "channels" which improve the tracking. I strongly recommend that you experiment with these.

Sites with "excessive advertising" are being rejected.

But that’s nowhere near what you get for using AdSense. There are people who earn in excess of 100.000 dollars per year by using AdSense. And it doesn’t just stop with making more money. Firstly, the ads are text only. That means they’re by far less obtrusive on your visitors then your average, flashy banner that’s designed to catch the eye of the visitor.

Sure, you’ll have to ensure they get better placement, so as to be noticed but despite that they don’t bother viewer’s as much as traditional ads. Think about the many sites you’ve seen using pop-ups, floating banners and many other schemes that will have visitors screaming in anger every time they visit the said website. You can actually do better then that, annoying people less and still making an amount of money.

Secondly, the ads are generated based on the contents of your site automatically. When you use an affiliate ad program, you have to specify certain categories that your sites belong to.

However, if any page on your site falls outside of these categories, the banners aren’t targeted anymore. And what that means is that you’re potentially showing ads to people who don’t have any interest in them and that can lead to inefficiencies.

With Google AdSense that just about never happens: the ads present on your site will always be in sync with whatever your visitors are interested in and that adds to your site’s value and to the revenue it produces.

What’s more, the look of these banners and their size is customizable, which means they will feel more integrated with the rest of your site’s content, which brings an increase in your site’s overall visual quality as opposed to a traditional approach.

For many people, there’s also a great problem with finding people to advertise on their site as well. AdSense is clearly the easiest solution available to this problem today.

It’s free to join the AdSense program and it almost takes no time at all. The potential database of websites from AdWords is larger then anything you might encounter from any competitor, numbering over 150.000 users. This means as more people compete the CPC or cost per click for search terms will inevitably rise.

Also, setting up AdSense on your site is a breeze, and you can complete the whole process in less then an hour. It takes a lot less to do then any form of affiliate advertising which is yet another reason to choose the easy AdSense approach.

All you need to do is add an AdSense banner on your website (other then registering with the program of course) is to copy & paste a few lines and you’re all done, you get to choose where the banners go, how large they are and how they integrate with the rest of your site.

For any webmaster out there, that’s a killer scheme because it lets you draw the line between your site’s usability level and the amount of advertising you wish to have. Some people need the money badly while others just keep AdSense running to pay for the hosting of their website.

AdSense is a great advertising program because a lot of thought has went into making it “just work for everyone”. It works great for the people who use AdWords, for the webmasters using AdSense, and most importantly for the visitors of the websites.