AdSense works by instantaneously auctioning off the available advertising spaces on a site to various advertising companies.
The default form of advertisement available from AdSense is CPC, but CPM may also appear on sites if the ad agency chooses the site and wins the auction, but these types of ads cannot be specifically requested by an AdSense user.
The advertisements are targeted by language and geographical location as well as content, and include both large and small businesses in a wide array of categories.
Google chooses not to officially disclose the percentage of profit it takes from what the advertisers pay for its services and ad space. The New York Times, however, calculated from Google’s published financial reports that AdSense partners receive 78.5% of the profits that Google makes off of their ad space.
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