Marketing (and earning money) on the Internet can make use of a simple tool called Google Adsense. Google Adsense can be a very lucrative venture for some so having a better understanding of Adsense is worthwhile when it comes to earning money.
Google Adsense is small contextual ads that are published on web sites with the consent of the site's owner. When selling products and/or creating brand awareness, publishers can create the ads. Adwords is what these ads are termed and it is a program sponsored by Google.
Google Adwords combines and work together with Adsense. 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. 'Pay per click' is the term that was coined for this.
Google has to split the money they receive from the creator or publisher of the ad with the person who owns or hosts the site that the Adwords ads appear and that is the uniqueness of Adsense. Nobody really knows what exactly the split is as it is a well guarded secret, but it does vary and let's assume it is 50% for our purposes.
If the ad creator is fine to pay .40 per click for his Adwords ad, then the website host who has joined the Adsense scheme can expect to receive approximately .20 when the ad is clicked. The remaining .20 belongs to Google. So basically it is a partnership of sorts between Google and site owners.
The Adsense program displays itself in a highly relevant way. How so? Well, probably the best way to illustrate this would be through an example. Imagine a women's clothing site owned by Mary. If Mary wished to utilize the Google Adsense scheme on her website, the ads would be for women's clothing. If she had a page devoted to shoes, then any Adsense ad on that page would be for women's shoes.
So what determines the price per click? This is where the Adwords side of the equation kicks in. Adwords publishers bid on keywords. The publisher will pay more per click depending upon how lucrative or sought after the keyword is. Anywhere from a few cents to in excess of $50 per click is what these keywords range from.
It is easy to see how someone with a high traffic site can generate quite a bit of revenue by teaming up with Google Adsense. The sole purpose of some websites is to generate revenue through Adsense ads. -
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