Alvin M. DM'd TechPinas this question via Twitter last night:
"TP, I'm just curious. I wanna ask: How does Adsense pick ads to show on Websites or Blogs hosting the ad program? Thanks!"
Hi Alvin! Thanks for the inquiry!
Google Adsense picks or (more appropriately,) TARGETS, ads for sites in two ways:
1. Contextual Targeting and
2. Placement Targeting
What are these exactly?
Quoting Google Adsense:
Our technology uses such factors as keyword analysis, word frequency, font size, and the overall link structure of the web, in order to determine what a webpage is about and precisely match Google ads to each page.
With placement targeting, advertisers choose specific ad placements, or subsections of publisher websites, on which to run their ads. Ads that are placement-targeted may not be precisely related to the content of a page, but are hand-picked by advertisers who've determined a match between what your users are interested in and what they have to offer.
Our technology can also determine the primary language of a page. If your content is in a language supported by our program, AdSense will target ads in the appropriate language to your content. In addition, Google ads are geotargeted to your visitor's location.
In simpler words, Google targets ads in two ways: First, based on the content of the website or blog page. And second, based on the location of the Ad on the page.
There you go! I hope you find this helpful. :)