Earning Money With Google Adsense: What Exactly Is This?

Most of the Internet marketing community is at least somewhat familiar with earning money through Google Adsense at this point. Google Adsense can be used to make not inconsiderable amounts of money, so it is worth spending the time to study how Adsense works.

Small contextual ads published on web sites with the consent of the site owner is Google Adsense. The ads are created by publishers that are selling products and/or creating brand awareness. The ads that are created are called Adwords which is a Google sponsored program.

There is a very tight relationship between Google Adwords and Adsense. Whenever an ad is clicked by a user performing a search on Google or one of their partner networks, the ad creator pays an amount of money to Google. This is where the term "pay per click" comes from.

The Adsense program allows the owner of the site where the Adwords ads appear to split the amount of money that Google has taken from the creator of the ad. It is a well guarded secret what the percentage of the split is, and it does vary, but for our purposes let's say it's 50%.

For example if the Adwords ad generates .40 per click, then the Adsense program pays the site host .20 when the ad is clicked on their site. The 50% that is left will be kept by Google. This indicates how the site owners and Google are partners in this scheme.

Adsense displays itself with high relevance. In what way? An example will help in illustrating this. Mary hosts a site dedicated to women's clothing. If the Google Adsense scheme was deployed on Mary's site, the ads would all revolve around clothing, and in particular women's clothing. An Adsense ad appearing on a particular page dedicated to shoes would also focus on shoes.

So how is the price per click determined? This calculation is taken care of by the Adwords scheme. Adwords publishers place bids on various keywords. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. The range of values for each keyword can be from a few cents to more than $50 per click.

By putting Google Adsense on their site, it wouldn't be a wonder to see them making some nice money if the site they own generates some decent traffic. Many Internet marketers will create web sites with specific content for the sole purpose of attracting high paying Adsense ads. -

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