If generating a consistent passive income online sounds appealing, look no further than Adsense. The Google Adsense program allows website owners to profit from displaying Google advertisements (text or image based) on their websites. The website owner must first create an Adsense account with Google (www.google.com/adsense), then copy the customizable code into their website to allow the advertisements to be displayed. There are a few basics which need to be understood before commencing an Adsense campaign.

Basic Adsense Terminology

The following is a list of the core terms any Adsense marketer must understand:

Page Impression: A view of your page by a visitor.

Ad Unit Impression: The number of ad units displayed to the visitor when they click on your page

Click: A click is logged whenever a visitor to your site clicks on one of your Adsense units.

Click Through Rate: The number of clicks received by an ad unit divided by the number of page impressions. The higher the click through rate, the more profitable your site is.

Effective CPM: This is the cost calculated per 1000 impressions to your site. This is not your actual earnings, but rather you earnings divided by the number of page impressions then multiplied by 1000.

Channel: A means to monitor the performance of a specific page or ad unit on your site.

Keyword/Niche Research

Correct keyword/niche research is a crucial factor of a successful Adsense campaign. Once you have an idea of the niche you want to pursue it is vital to do some keyword research within that niche to see if there is a demand for you to supply content for it. Ideally the niche/keywords you choose should have a reasonable level of traffic and a reasonably high level of competition. I am not going to delve further into efficient research methods, however to put it simply:

Higher Competition= Higher Cost Per Click= More Money You Receive Per Click

Content is King

I can not emphasize this phrase enough. To understand Adsense, you need to see it from your website visitor's perspective. The majority of surfers don't even know what Adsense is, let alone what clicking on an advertisement actually does for you the website owner. The sole reason you get a visitor to your site is based on your CONTENT. You will not get regular clicks on your site if the content you are displaying is irrelevant or freely available throughout the internet. If you can generate targeted and relevant content as per your niche, you are half way there to Adsense success. So before you consider incorporating Adsense in your site, ensure the content is useful.

Paul Korber is an experienced internet marketer, and writes on internet marketing for beginners.

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