Google Adsense involves placing targeted ads on websites with the cooperation of the owner of that website. Once publishers have created the ads, they are used to both sell products and create brand awareness. Adwords, which is a Google sponsored program, is how these ads are referred to.
Google Adwords and Adsense go together hand in hand. Google gets a predetermined price from the person who created the ad, every time someone who does a search on Google or one of their partner networks clicks on one of the sponsored ads. This is what is known as 'pay per click.'
The beauty of Adsense lies in the fact that the person who owns or hosts the website that the Adwords ads appear gets to split the money with Google who pays them when they receive it from the creator or publisher of the ad. For our purposes, let's assume the split is 50%, but it is a well guarded secret what exactly the percentage of the split is, but it does vary.
Google and the host of the website split the money paid by the publisher. So if a publisher paid .40 per click for his Adwords ad, then the host of the website who welcomed Adsense can expect to get .20 and Google gets to keep the other .20 every time someone clicks on the ad that appears on the host's website. So Google and website owners are sort of like partners in this.
In the most relevant way possible Adsense is shown. What does this entail? Well, probably this can be illustrated best through an example. Let's say Mary had a website 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. The Adsense ads would be appearing specifically for women's shoes if a page of her website was dedicated to shoes.
So how is the price per click worked out? This is determined by the Adwords program. Keywords are bid on by Adwords publishers. A more sought after keyword will result in the publisher paying more for each click. The value of keywords can be anywhere from a few cents to over $50 for each click.
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. With the sole purpose of attracting high paying Adsense ads, many Internet marketers create web sites with specific content. -
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