With the consent of web site 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. The ads that are created are called Adwords and they are also a Google sponsored program.
Google Adwords and Adsense are very closely linked. Every time someone does a search on Google or one of their partner networks and clicks on one of the sponsored ads, then the person who created that ad will pay Google a predetermined price. This has become known as "pay per click".
The Adsense program allows the owner of the web site where the Adwords ads appear to split the amount of money that Google has taken from the creator of the ad. The size of this percentage split is a secret, but for our calculations we will assume 50%.
For example if the Adwords ad generates .40 per click, then the Adsense program pays the web site host .20 when the ad is clicked on their web site. The remaining .20 belongs to Google. So in effect, this is a partnership between the web site owners and Google.
In the most appropriate way Adsense is described. What does this signify? Well, let me give an example that probably illustrates it best. Mary had a web site, let's say, featuring women's clothing. Google Adsense once Mary decides to monetize her web site can help her to show ads on her web site that would be related to clothing or to be more specific, women's clothing. In her web site if shoes are dedicated to a particular page, then on that page there would be Adsense ads appearing for women's shoes.
So the price per click is determined by what? The Adwords side of the equation kicks in here. Publishers of Adwords bid on keywords. When a keyword is more lucrative or sought after, the publisher is willing to pay more for each click. Anywhere from a few cents to in excess of $50 per click is what these keywords range from.
Anyone with a web site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their web site, you don't need rocket science to understand that. Web sites with specific content are created by most Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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