A large part of Google's multi-billion dollar annual turnover comes from its nifty AdSense advertising program. The software enables website owners to drop in a piece of code to their pages that then serves advertisements provided by Google.How Does Google AdSense Work?
It all works dynamically and adverts that are displayed based on content of page. So if a website owner places Google AdSense code on a page about holidays then holiday ads are delivered onto page automatically by Google.
Everybody wins because when people click on one of ads - advertiser gets a visitor, Google can charge a rate for clickthrough and website owner who is serving ad gets a share of this revenue.
It's been an excellent model for all parties concerned and especially as Google has enabled even small website owners to take part which means accumulatively Google's advertising real estate is absolutely vast.
Is The Monopoly Over?
But there may be trouble ahead for Google as, according to sources at CNETNews, Yahoo! is planning a very similar service to challenge Google's.
The two search giants have been up against each in search advertising arena already but it is only now that Yahoo! seems poised to launch a monopoly-breaking attempt on Google's AdSense program.