Tips For Using Google Adsense

You have probably heard about Google Adsense, even if you don't have an e-commerce site yet. But you might not know exactly how Adsense works and what are the best ways to optimize your site for revenues. It takes more than just adding Adsense links to your page.
Adsense produces revenue for you three different ways: page impressions, click throughs and CPMs (effective cost per thousand impressions).
Page impressions are completely related to traffic. It is the number of times the page you have your Adsense links on is viewed during a specific period in time. Obviously, the more times it is viewed, the higher your page impressions are. There are many ways to generate the traffic, either through traffic exchanges, reciprocal links, CPC campaigns and others.
Click throughs are the actual clicks from your webpage or CPC (cost per click) ad campaign. This means a viewer actually clicked through your link to another site. These click throughs may or may not generate a sale for you, but you can receive revenue just for the click through. The click through rates are calculated by how many click throughs are generated vs. how many page impressions you have. You can increase this rate with key word selection.
CPM is more a measure of your advertising effectiveness. It doesn't matter if you have a million impressions, if no one clicks on your links, then you are losing potential earnings. You can help increase your CPM by being keyword specific and choosing the most popular keywords for your niche. You can view popular keyword searches at overture.com
To encourage the most clicks on your Adsense ads, placement is key. Your site should be keyword rich and certainly not just a page of ads. If you have an article on your site, you can embed an Adsense link within the article. You want to make sure that the ad link is within the first screen shot of your web page. Most people perusing websites will scan quickly over the first page and not scroll down unless your site has strongly caught their interest. If you have your link on the lower half of the web page, then you will miss a good deal of potential click throughs or sales.
Blend the ad into your article as well. Google allows you to adjust the background, font and color to match the theme of your site. This makes the ad link seem less like an ad and more about information. Remember, you can earn money with a click through as well as a sale!
The most important key with your Adsense ads is to keep them relevant. Don't put ads for popular searches on a website that has nothing to do with your site. Not only will this irritate your reader, but Google will also penalize your site in their rankings.
So whether you have an existing web site, or are thinking of creating one specifically to utilize Adsense, understanding and implementing the above items should increase the revenue your site brings in!