With the website owner's permission, Google Adsense places ads on the website which are targeted to the site's users. Publishers create the ads in order to either sell, or create brand awareness. Adwords, which is a Google sponsored program, is how these ads are referred to.
Google Adwords and Adsense run hand in hand. The person who created the ad pays Google a predetermined price every time someone who does a search on Google or one of their affiliate networks clicks on one of the sponsored ads. This is where the term "pay per click" comes from.
Google has to split the money they receive from the creator or publisher of the ad with the person who owns or hosts the website that the Adwords ads appear and that is the uniqueness of Adsense. The percentage of the split does very and it is a well guarded secret what the percentage of the split it, but let's say it's 50% for our purposes.
Say the publisher is willing to pay. 40 per click for his Adwords ad, then every time someone clicks on the ad that appears on the host's website that welcomes Adsense can expect to get roughly .20 and the other .20 goes to Google. So Google and website owners are sort of like partners in this.
Adsense is shown in the most relevant way possible. What does this mean? Well, let me give an example that probably illustrates it best. Mary had a website, let's say, featuring women's clothing. If Mary wanted to monetize her website with Google Adsense the ads that would be shown would all be related to clothing, and more precisely, women's clothing. If shoes were the central theme in one of the pages of her website, women's shoes would be what the Adsense ads would be for.
So how do we calculate how much revenue a click generates? This is where the Adwords side of the equation kicks in. Adwords publishers work out the value of keywords and place bids on them. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. Keywords range anywhere from a few cents to in excess of $50 per click.
It doesn't take a genius to see how a popular website with a lot of traffic can make quite a bit of money through Google Adsense. Many Internet marketers will create web sites with specific content for the sole purpose of attracting high paying Adsense ads. -
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