Module III: Google Analytics and Google AdSense

Google Analytics Overview (25%)

Google Analytics (GA) is a web analytics platform that collects data from websites and apps to
generate reports providing insights into user behavior and site performance. To use GA, you create
a free GA account and install a small JavaScript tracking code on each webpage. This code records
user interactions (pageviews, clicks, events, transactions, etc.) and sends the data to Google’s servers
for processing. Once data is processed, GA organizes it into metrics and dimensions (see below) and
presents it in customizable reports. GA can integrate with other Google products (e.g. Google Ads,
Search Console, Tag Manager) to combine advertising and search data with analytics for deeper
insights. In recent years, Google introduced Analytics 4 (GA4) with an event-based data model
(tracking every user action as an event) replacing the older Universal Analytics (UA) model, which
was largely session-based. GA4 is more focused on cross-platform measurement (web and app) and
enhanced privacy controls.

Figure: Conceptual dashboard of Google Analytics, showing key metrics (sessions, users, bounce rate,
conversions) and charts.

 Key Features: GA provides real-time data (who is on the site right now), demographic and
geographic information, traffic sources (organic, paid, referral, social), device/browser
breakdowns, and e-commerce/conversion tracking.

 How It Works: Each time a user visits a tracked page, the GA code generates a session (group
of interactions within ~30 min). GA stores Hits (each interaction or event). For example, each
pageview, click, or video play is recorded. Over a session, GA collects user path data. When
the session ends (30 min of inactivity or at midnight by default), GA aggregates the hits into
reports.

 Accounts and Properties: GA is organized in a hierarchy: an Account (company level), one or

Example – Setting Up and Using GA

A small online store owner might install GA code on every page. When a visitor browses products
and completes a purchase, GA records pages viewed, time on site, and the transaction (if e-
commerce tracking is enabled). The owner can then see a report showing conversion rate by traffic
source, helping to allocate marketing budget to the most profitable channels.

Google Analytics Standard Reporting

Google Analytics provides a set of standard (default) reports organized into four main categories:

 Audience Reports: Shows who is visiting your site (users, sessions, new vs. returning
visitors), demographics (age, gender), interests, geography (country/city), technology
(browser, device, OS) and behavior (session duration, pages per session).

 Acquisition Reports: Identifies how users arrived (channels), including Organic Search, Paid
Search, Display, Social, Email, and Referrals. You can drill into each channel to see specific
sources and campaigns driving traffic.
  Behavior Reports: Analyzes what users do on your site – top pages (Pageviews), landing
pages (entry points), exit pages, site speed, search terms used (if site search is enabled), and
user flow through content. This helps optimize content and navigation.

 Conversion Reports: Tracks goal completions and transactions. Goals can be defined (e.g.
form submits, sign-ups, downloads), and e-commerce reports show sales volume, revenue,
and product performance. Funnel visualization shows drop-off at each step (if goals are
funnel-based).

Each report view includes a toolbar for selecting date ranges, comparing periods, and exporting or
emailing data. Users can add segments (e.g. “Mobile Traffic” vs. “Desktop Traffic”) to compare
subsets within the same report. The default dashboard layouts can also be customized or expanded
with custom reports and dashboards tailored to specific KPIs.

Example: The Acquisition > All Traffic > Channels report lets you see which marketing channels drive
the most visitors and conversions. If Paid Search has a high conversion rate but low volume, you
might increase that campaign budget. Conversely, if a channel shows low engagement (e.g. high
bounce rate), you can investigate ad copy or landing page issues.

Google Analytics standard reports are divided into Audience, Acquisition, Behavior, and Conversion
categories, covering visitor characteristics, traffic sources, on-site behavior, and conversion metrics.

Google Analytics Standard Concepts

Understanding GA requires grasping its basic terms:

 Metrics vs. Dimensions: Every GA report uses dimensions (descriptive attributes) and
metrics (quantitative measures). For example, “City” is a dimension (“Paris”, “New York”),
while “Sessions” is a metric (e.g. 5,000 sessions). A report table might list each City (rows)
with columns for Sessions and Pages/Session. Only metrics and dimensions of compatible
scope can be combined in a report.

 User and Session: A user is an individual visitor (tracked via cookies or Google signals). A
user may have multiple sessions (visits) over time. Each session is a continuous group of
interactions (pageviews, events) on your site that occur within a set time frame (default 30
minutes of inactivity). GA creates a new session if the time expires or if the user returns via a
new campaign source.

 Pageview: A pageview is recorded each time a page (or screen in an app) is loaded. It is the
most basic hit type.

 Bounce and Bounce Rate: In Universal Analytics, a bounce is a single-page session (no
further interaction). The bounce rate (%) is the percentage of sessions that had only one
pageview. (In GA4, bounce rate is redefined as the inverse of “engagement rate”). A high
bounce rate generally indicates that users did not click to another page or trigger an event.

 Goal/Conversion: A goal represents a valuable action (form submission, sign-up, sale). When
a session includes the goal (or a value transaction in e-commerce), it is counted as a
conversion. Conversion rate = (sessions with conversion) / (total sessions).

 Tracking Code and Cookies: GA tracking code (gtag.js or analytics.js) places a cookie on the
user’s browser to identify repeat visits. It collects information like language setting, device,
and referral source.
  Filters and Segments: Filters (applied at the view level) include or exclude data (e.g. exclude
internal IP traffic). Segments (applied at report level) let you isolate subsets of users or
sessions (e.g. only mobile users) for comparison.

Understanding these concepts lets analysts interpret GA reports correctly. For instance, knowing that
“Sessions” are counted when a user lands on a site and doesn’t interact for 30+ minutes or changes
campaign, explains why re-visits may start new sessions.

Concept of Google Display Network (GDN)

The Google Display Network (GDN) is Google’s vast advertising network of websites, apps, and video
content where display ads can appear. It spans over 2 million sites, videos, and apps (including
Google-owned properties like YouTube, Gmail, and Blogger) and reaches over 90% of global internet
users. Unlike search ads (text ads on search results pages), display ads can be image or video banners
placed on third-party websites and apps as users browse online.

 Ad Formats: GDN supports various formats: responsive display ads (automatically adapting
image/text), standard image banners (static or animated GIF), video ads (e.g. in YouTube),
and rich media (interactive HTML5) ads. An example is a banner ad at the top of a news site
or a video ad pre-roll on YouTube.

 Targeting Options: Advertisers can target display ads by audience or content: for example,
demographic targeting (age, gender), interest/affinity categories (e.g. “outdoor enthusiasts”),
custom intent audiences, and remarketing lists. Ads can also be targeted by contextual
keywords (placing ads on pages related to specific topics) or specific placements (choosing
particular websites or YouTube channels). The GDN even allows in-market targeting (users
actively researching certain products). In short, you can aim ads at specific user segments
(e.g. returning visitors) or content contexts (e.g. display ads on gardening blogs for a plant
retailer).

 Reach and Use Cases: Because users on GDN may not be in active “buying” mode, display
ads are often used for brand awareness and remarketing (showing ads to people who have
already visited your site). For example, a user viewing an online video can see a banner for a
product they browsed earlier, reminding them of the brand. GDN can thus help expand reach
beyond search and keep a brand top-of-mind.

The Google Display Network (GDN) consists of over 2 million websites, videos, and apps where
display ads can appear, with sophisticated targeting by audience and content (demographics,
interests, topics, placements).

How to Monetize a Website for Revenue

Website owners can generate revenue through several methods:

 Display Advertising (Ad Networks): The most common approach is placing ads on your site.
By joining Google AdSense (or similar ad networks), publishers allow automated ads to be
served to their pages. Advertisers bid to place ads (e.g. via AdWords campaigns), and each
click or impression earns the publisher money. For example, a blog might display contextual
text and image ads, earning revenue per click (CPC) or per thousand impressions (CPM).
AdSense optimizes ad size and placement for better performance.
  Direct Advertising Sales: Publishers can sell ad space directly to advertisers (known as direct
deals or sponsorships), negotiating flat fees or CPM rates. This might involve selling banner
placements on the site to local businesses or brands.

 Affiliate Marketing: By promoting products or services via affiliate links (Amazon Associates,
Commission Junction, etc.), a website earns a commission on any sales generated through
those links. For instance, a tech review site might include affiliate links to gadgets it reviews;
every purchase earns a percentage for the site owner.

 Sponsored Content: Publishers can create sponsored posts or reviews for brands. In return
for a fee, they write blog posts or produce videos promoting a company’s product, making
that content part advertisement and part article.

 Premium Content/Subscriptions: Some sites offer paid content (articles, videos, newsletters)
or memberships (courses, forums) in exchange for a subscription or one-time fee. For
example, a news site might have a paywall where subscribers pay monthly for full access.

 E-commerce Sales: If applicable, a website can sell its own products or services directly.
Revenue then comes from product sales rather than advertising.

Monetization methods include displaying ads (via networks like AdSense), affiliate links, sponsored
content, subscription access, and e-commerce sales. By combining multiple streams (diversification)
and ensuring ads/content are relevant to the audience, publishers can maximize revenue while
maintaining a good user experience.

Inventory Source

In online advertising, an inventory source refers to where ad impressions are available. For display
advertising, inventory can come from:

 Google AdSense/GDN Inventory: This includes ad space on websites and apps that
participate in Google’s network. Publishers give Google permission to sell this space, and
advertisers buy it via AdWords (for GDN) or Google Ad Exchange (AdX).

 Ad Exchanges and Networks: Platforms like Google Ad Exchange aggregate inventory from
many publishers (including GDN sites) and sell it in real time (RTB). For instance, Google AdX
has all of the GDN inventory plus additional third-party inventory.

 Direct Deals (Private Marketplace): Advertisers may negotiate directly with publishers (e.g.
premium news sites, YouTube channel owners) for specific inventory – often managed via
platforms like Google Ad Manager in programmatic guaranteed or private auction deals.

 Video and Other Channels: YouTube itself is an inventory source for video ads (via AdSense
for video). Social platforms (Facebook, Instagram) and in-app networks (AdMob) each have
their own inventory sources.

For example, Google’s Ad Exchange (AdX) offers a larger inventory: it includes the entire GDN plus
other sources. The GDN alone is a subset of AdX’s inventory. Advertisers choose inventory sources
based on reach and control – GDN is easy to use with no extra fees, while AdX provides
programmatic access to more supply.

Concept of Hosting Ads

 Ad Server: A platform (e.g. Google Ad Manager) that stores ad creatives and delivers them to
user’s browsers. Ad servers also track ad impressions, clicks, and other engagement metrics.
When a visitor loads a page, the ad server decides which ad to show (based on targeting
rules and bidding) and records that event.

 Ad Placement and Tagging: Each ad unit on a page (e.g. banner at top, sidebar rectangle,
video pre-roll) is defined by an ad tag (a snippet of HTML/JavaScript). The tag calls the ad
server to fetch and display the appropriate ad. Publishers strategically place tags where ads
are visible and likely to be clicked.

 Ad Targeting: Before an ad is served, criteria like user location, demographics, browsing

 Ad Optimization: Ad hosting platforms use algorithms to optimize which ads to show (e.g.
choosing higher-paying ads or adjusting bids for better performance). Publishers can set
priorities or let the system optimize automatically.

There are several hosting models for selling and serving ads:

1. Direct Sales: The publisher sells ad space directly to advertisers (often larger media buyers),
setting fixed prices or guaranteed impressions. This is common for high-profile sites (e.g. a
homepage banner on a popular news portal).

2. Ad Networks: Publishers join networks (like Google AdSense, Media.net) that pool inventory
from many sites. Advertisers buy through the network, and the network’s ad server
automatically matches ads to placements. AdSense is an example: Google’s network
aggregates small publishers, making it easy for anyone to host ads and earn.

3. Programmatic Advertising: This uses real-time bidding via Ad Exchanges and DSPs. Inventory
is traded in real time: when a user loads a page, advertisers bid on that impression through
an exchange. This automated method gives advertisers fine-grained targeting and publishers
access to a wider range of ads.

4. Social Media Advertising: Platforms like Facebook and LinkedIn allow advertisers to host ads
directly in the social feed. While not “hosted” on independent websites, social ads are
another form of hosting (the platform is the “host” for ads targeting the social audience).

Ads are delivered to users via ad servers and tags. Publishers can host ads through direct deals, ad
networks (e.g. AdSense), programmatic exchanges, or social platforms. This technology ensures that
the right ads appear in the right places and are tracked for performance.

YouTube Video Monetization

YouTube content creators can monetize videos through the YouTube Partner Program (YPP), which
allows ads to run on their content. Key points include:

 Eligibility: To join YPP, a channel must meet Google’s criteria: at least 1,000 subscribers and
4,000 valid public watch hours in the past 12 months, and comply with all monetization
 policies (no active copyright or community-strike violations). The creator must also link an
AdSense account to receive payments.

 Ad Formats: Once enabled, creators can display various ad formats:

o Pre-roll Ads: Video ads that play before the selected content starts.

o Mid-roll Ads: Ads inserted mid-video (for longer videos, interrupting content).

o Overlay Ads: Semi-transparent banner ads that appear over the bottom of videos.

o Display (Banner) Ads: Static or animated ads shown beside the video player on
desktop.

o Sponsored Cards/End Screens: Promoted cards that appear as a small teaser in the
video, or full-screen promos at the end.

 Monetization Process: A creator enables monetization in YouTube Studio and connects their
AdSense account. YouTube then reviews the channel for adherence to advertiser-friendly
content. Upon approval, ads start showing on eligible videos. Creators can track earnings,
views, click-through rates and other analytics in YouTube Studio.

 Revenue Sharing: YouTube uses a revenue-share model. Advertisers pay YouTube for ads
shown on videos, and creators receive a portion. Typically, creators earn about 55% of the ad
revenue, while YouTube retains ~45%. (Revenue can vary based on ad formats and viewer
demographics.)

In summary: once a creator meets the requirements (1,000 subscribers and 4,000 watch hours) and
enables YPP, ads can run on their videos. The creator earns roughly 55% of the ad revenue from views
and clicks. YouTube monetization turns a channel’s audience into income, but requires following
YouTube’s guidelines and creating advertiser-friendly content.

Sources: Authoritative Google documentation and industry guides have been used, e.g. Google’s
official Analytics and AdSense help pages, expert marketing blogs, and educational notes. These
cover concepts, definitions, and best practices in Google Analytics reporting, Google Display
Network, website monetization, and YouTube monetization.