The ads are a combination of pay-per-click and pay-per-impression forms of advertising. This means you are paid according to valid clicks on ads and by the number of times ads are shown. Google has a variety of ads to choose from and you can use them alone or in combination on each web page. Be sure to read the Terms of Service in determining the number and combinations of ads allowed by Google on each page.

Google does not allow you to use their ads in combination with other advertisers using similar programs, i.e. Yahoo. Again, check Google’s Terms of Service for details. Reading Google’s Terms of Service cannot be over stressed. They are serious about their policies and the last thing you want is your account closed because of negligence. Once an account is closed it is next to impossible to have it reopened.

Currently AdSense has five categories of advertising. First, there is AdSense for Content. Within this category you have Ad Units consisting of text ads, image ads and a combination of the two. These ads are targeted to the content of your web pages. There’s a second choice known as Link Units, which displays a list of topics relevant to your web page. When visitors to your site click on a Link Unit topic they’re taken to a page of related ads. With both ad types you have the flexibility of adjusting the size and colors.

Second, there is AdSense for Search. You place a Google search form on your website and users can search on your website or the web in general. You earn revenue from ads that are relevant to the user’s search terms.

Third, there is AdSense for Feeds which allows web publishers to earn income by placing Google ads in their feeds. It works very similar to AdSense fro Content as it delivers ads relevant to your content. You will be paid according to valid clicks and number of impressions. AdSense for Feeds also has flexibility by allowing you to control frequency, appearance and positioning of the Google Ads in your feeds.

Fourth, there is AdSense for Domains. Don’t ignore those old domain names. If you have parked domain names you can have Google ads show when they are clicked. Rather than being directed to a web page designed by you, the web surfer is taken to a Google page filled with Google ads related to your domain name. You may be wondering how these can generate income. How many times have you mistyped an address and you were taken to one of these pages. If you use your imagination you will come up with other effective ways to use this advertising source.

Last, there is AdSense for Mobile Content. If you have a mobile website you can have relevant ads from Google included. If you are unfamiliar with mobile websites you are encouraged to do a little research. It is simply a website configured to display on a mobile device.

There you have it, the basics of Google AdSense. While this only scratches the surface it does provide you the basics of understanding this great income generating opportunity. As you enter the AdSense world take it slowly, prudently and be sure to, you guessed it, read the Terms of Service.