With the consent of website owner small contextual ads are published which is known as Google Adsense. Publishers that are selling products and/or creating brand awareness create the ads. Adwords is what these ads are termed and it is a program sponsored by Google.
Google Adwords and Adsense go together 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 what is known as 'pay per click.'
Now the beauty of Adsense is that the person who owns or hosts the website that the Adwords ads appear on will split the amount of money that Google receives from the creator or publisher of the ad. It is not common knowledge exactly what the percentage split is, and it is not always the same, but let's assume for our purposes 50%.
If a publisher is willing to pay .40 per click for his Adwords ad, then the host of the website that welcomes Adsense can expect to see roughly .20 every time someone clicks on that ad that appears on their website. The remaining .20 belongs to Google. This indicates how the website owners and Google are partners in this scheme.
The fact that its placement is highly relevant is one of the most attractive qualities of the Adsense program. In what way? An example will help in illustrating this. Mary hosts a website dedicated to women's clothing. If Mary's website incorporated the Google Adsense program, then the ads would be focused towards women's clothing. If one of her pages focussed on shoes, then the Adsense ad there would also focus on shoes.
So how is the price per click determined? The Adwords program takes care of this. 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. Highly sought after keywords can be worth over $50 per click, while low value ones are only worth a few cents.
By putting Google Adsense on their website, it wouldn't be a wonder to see them making some nice money if the website they own generates some decent traffic. Specific content is created by Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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