Google Adsense and more…

AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, more recently, video advertisements on their sites. These ads are administered by Google and generate revenue on either a per-click or per-thousand-ads-displayed basis. Google utilizes its search technology to serve ads based on website content, the user’s geographical location, and other factors. Those wanting to advertise with Google’s targeted ad system may sign up through AdWords. AdSense has become a popular method of placing advertising on a website because the ads are less intrusive than most banners, and the content of the ads is often relevant to the website.

It currently uses JavaScript code to incorporate the advertisements into a participating site. If it is included on a site which has not yet been crawled by the Mediabot, it will temporarily display advertisements for charitable causes known as public service announcements (PSAs). (Note that the Mediabot is a separate crawler from the Googlebot that maintains Google’s search index.)

Many sites use AdSense to monetize their content and some webmasters work hard to maximize their own AdSense income. They do this in three ways:
They use a wide range of traffic generating techniques including but not limited to online advertising.
They build valuable content on their sites; content which attracts AdSense ads and which pay out the most when they get clicked.
They use copy on their websites that encourage clicks on Ads. Note that Google prohibits people from using phrases like “Click on my AdSense ads” to increase click rates. Phrases accepted are “Sponsored Links” and “Advertisements”.

The source of all AdSense income is the AdWords program which in turn has a complex pricing model based on a Vickrey second price auction, in that it commands an advertiser to submit a sealed bid (not observable by competitors). Additionally, for any given click received, advertisers only pay one bid increment above the second-highest bid.

How AdSense works

Each time a visitor visits a page with an AdSense tag, a piece of JavaScript writes an iframe tag, whose src attribute includes the URL of the page. Google’s servers use a cache of the page for the URL or the keywords in the URL itself to determine a set of high-value keywords. (Some of the details are described in the AdSense patent.) If keywords have been cached already, ads are served for those keywords based on the AdWords bidding system.

The storage requirements of an AdSense system are stunningly modest. If each URL has just 8 “high-value” keywords, each represented by a single 32-bit number, then the keywords for each URL could be represented with just 32 bytes. The high value keywords of 4 billion URLs could be stored in 128GB, which would cost only $100 (circa 2006). 400 billion URLs or 100 drives (for a redundancy of 100) would require only $10,000 in storage costs.

AdSense serves a very large number of pages each day. If each day around 1B people saw 10 AdSense impressions (or 100M people saw 100 AdSense impressions), then AdSense would serve around 10B requests/day, or 115,741 requests/sec. If one machine can serve 20 reqs/second (seek times to read a random 4096-byte location on a drive allow for bursts of well over 100 reqs/second), then Google would require 5,787 servers to serve these 10B reqs/day. If each of these servers were hosted at a cost of $100/month, then it would cost $579K/month to run the adservers needed.

Suppose these 10B impressions/day generated clicks at a clickthrough rate of .3% and an average CPC of $.10. Then each day Google would receive 30M clicks/day (347 clicks/sec), generating $3M/day ($34.77/sec), or 900M clicks/month, generating $90M/month.
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Abuse

Some webmasters create sites tailored to lure searchers from Google and other engines onto their AdSense to make money from clicks. These “zombie” sites often contain nothing but a large amount of interconnected, automated content (e.g. a directory with content from the Open Directory Project). Possibly the most popular form of such “AdSense farms” are splogs (“spam blogs”), which are centered around known high-paying keywords. Also many sites use the free Wikipedia content to attract visitors. These and related approaches are considered to be search engine spam and can be reported to Google.

Google history and the first Google presentation 1996

Google began as a research project in January, 1996 by Larry Page and Sergey Brin, two Ph.D. students at Stanford University.[5]

Google in 1998

They hypothesized that a search engine that analyzed the relationships between websites would produce better results than existing techniques which essentially ranked results according to how many times the search term appeared on a page.[6] It was originally nicknamed “BackRub,” because the system checked backlinks to estimate a site’s importance.[7] A small search engine called RankDex was already exploring a similar strategy.[8]

Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. Originally the search engine used the Stanford University website with the domain google.stanford.edu. The domain google.com was registered on September 15, 1997, and the company was incorporated as Google Inc. on September 7, 1998 at a friend’s garage in Menlo Park, California.

In March, 1999, the company moved into offices at 165 University Avenue in Palo Alto, home to several other noted Silicon Valley technology startups. After quickly outgrowing two other sites, the company settled into their current home in a complex of buildings in Mountain View at 1600 Amphitheatre Parkway, in 2003. Silicon Graphics leased these buildings to Google.

The Google search engine attracted a loyal following among the growing number of Internet users. They were attracted to its simple, uncluttered design — a competitive advantage to attract users who did not wish to enter searches on web pages filled with visual distractions. This appearance, while imitating the early AltaVista, had behind it Google’s unique search capabilities. In 2000 Google began selling advertisements associated with the search keyword to produce enhanced search results for the user. This strategy was important for increasing advertising revenue, which is based upon the number of hits users make upon ads. The ads were text-based in order to maintain an uncluttered page design and to maximize page loading speed. Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at $.05 per click. This model of selling keyword advertising was originally pioneered by Goto.com (later renamed Overture, then Yahoo! Search Marketing).[9] While many of its dot-com rivals failed in the new Internet marketplace, Google quietly rose in stature and generated revenue.

U.S. Patent 6,285,999 describing Google’s ranking mechanism (PageRank) was granted on September 4, 2001. The patent was officially assigned to Stanford University and lists Lawrence Page as the inventor.

Corporate culture

A license plate seen in the Googleplex parking lot

Google adopts a relaxed corporate culture, reminiscent of the Dot-com boom. Google’s corporate philosophy is based on principles like “You can make money without doing evil”, “You can be serious without a suit” and, “Work should be challenging and the challenge should be fun.” A complete list of corporate fundamentals is available on Google’s website.[18] The company encourages equality within corporate levels. Twice a week there is a roller hockey game in the company parking lot. Google’s relaxed corporate culture can also be seen externally through their holiday variations of the Google logo.
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“Twenty percent” time

All Google engineers are encouraged to spend 20% of their work time on projects that interest them. The time can be allocated to one day a week, or pooled into a month. Some of Google’s newer services, such as Gmail, Google News and orkut, are said to have originated from these independent endeavors.
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Googleplex

Welcome sign to the Googleplex
Main article: Googleplex

As a further play on Google’s name, its headquarters, located in California, are referred to as “the Googleplex” — a googolplex being 1 followed by a googol of zeros, and the HQ being a complex of buildings (cf. multiplex, cineplex, etc). The lobby is decorated with a piano, lava lamps, and a real-time projection of current search queries. The hallways are full of exercise balls and bicycles. Each employee has access to the corporate recreation center. Recreational amenities are scattered throughout the campus, and include a workout room with weights and rowing machines, locker rooms, washers and dryers, a massage room, assorted video games, Foosball, a baby grand piano, a pool table, and ping pong. In addition to the rec room, there are snack rooms stocked with various cereals, gummy bears, toffee, licorice, cashews, yogurt, carrots, fresh fruit, and dozens of different drinks including fresh juice, soda, and make your own cappuccino.[19]
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April Fool’s Day jokes
Main article: Google’s hoaxes

Google has a tradition of creating April Fool’s Day jokes such as Google MentalPlex, which featured the use of mental power to search the web. In 2002, they claimed that pigeons were the secret behind their growing search engine. In 2004, it featured Google Lunar, which featured jobs on the moon, and in 2005, a fictitious brain-boosting drink, termed Google Gulp, was announced. In 2006, they came up with Google Romance. One can find other pranks hidden between Google’s pages. Additionally, in the languages list one can find the Bork! Bork! Bork! version, imitating the Muppet Show’s Swedish Chef. They also offer versions in Pig Latin, Elmer Fudd, Klingon, and a Leet (or h4×0r) version of Google. Some people thought the announcement of Gmail in 2004 around April Fool’s Day (as well as the doubling of Gmail’s storage space to two gigabytes in 2005) was a joke. In 2005, featured on the Gmail homepage, was a comedic graph depicting Google’s goal of “infinity plus one” GB.

Google Inc. (NASDAQ: GOOG and LSE: GGEA) is an American multinational software corporation, first incorporated as a privately held corporation in September, 1998, that specializes in search engine, information retrieval technology and online advertising. With a market capitalization of US$118.32 billion as of June 2006, Google is the largest internet search company in the world, almost twice as large as rival Yahoo![1] The company employs approximately 6,800 employees[2] and is based in Mountain View, California. Eric Schmidt, formerly chief executive officer of Novell, was named Google’s CEO when co-founder Larry Page stepped down.

The name “Google” originated from a misspelling of “googol,” [3] which refers to 10100(a 1 followed by one-hundred zeros). Google has become well known for its corporate culture and innovative, clean products, and has a major impact on online culture. The verb “to google” has come to mean “to perform a Web search”, usually with the Google search engine.

Google’s services are run on several server farms, which, in 2004, consisted of over 30 clusters of up to 2,000 PCs per cluster. Each cluster contains one petabyte of data with sustained transfer rates of 2 Gbps. Combined, over four billion web pages, averaging 10 Kb each, have been fully indexed.[4]

Google Minesweeper Launches

Continuing it’s attack against the entrenched Microsoft application monopolies, Google Labs today launched a new Ajax version of the venerable Minesweeper application. The application is not open to the public yet, but I was able to secure a screenshot which you can see below.

Coming on the heels of the Writely acquisition and launch of Google Spreadsheet, the addition of Minesweeper looks like it may finally end the MS monopoly on the desktop.

Larry Ellison of Oracle lauded the innovation, saying, “Finally, our employees have no more excuses for running Windows on their PC’s! And I can work completely on my new Mac now when I’m at the office.”

Google Minesweeper includes a number of impressive innovations including:
o Online collaboration – cooperate with co-workers to uncover mines
o Online game storage. Now you can finish that game at home.
o Integrated GTalk for real-time trash talking.

Not everyone is so excited about this launch though. Sam Kinelson, CEO at the Sequoia-backed startup Minestrr, complained “This is just another example of Google quashing competition in a new market segment. They’re just sweeping the field to keep out fast moving up-and-comers. What’s next? Google Notepad?!?!” Google is already launching into a crowded field, with established startups including Minestrr, mine.sweep.er, 37mines.com, minetube, and technominer.com.

The launch is being covered over at Techcrunch (“Google changes the game”) and by Om Malik (“Google sweeping up the competition”).