Google Adsense is small contextual ads that are published on web sites with the consent of the site's owner. The ads are created by publishers that are selling products and/or creating brand awareness. The ads that are created are called Adwords which is a Google sponsored program.
Google Adwords and Adsense run hand in hand. Whenever an ad is clicked by a user performing a search on Google or one of their partner networks, the ad creator pays an amount of money to Google. This is described as "pay per click".
The Adsense program allows the owner of the site where the Adwords ads appear to split the amount of money that Google has taken from the creator of the ad. Although the percentage split is a well guarded secret, for our purposes we can work on 50%.
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 site that welcomes Adsense can expect to get roughly .20 and the other .20 goes to Google. So essentially, there is a sort of partnership that is developed between the site owners and Google.
In the most appropriate way Adsense is described. What does this signify? Well, probably this can be illustrated best through an example. Let's say Mary had a site featuring women's clothing. If Mary wanted to monetize her site 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 site was dedicated to shoes.
So how is the price per click determined? What comes in here is the Adwords side of the equation. The keywords are bid on by publishers of Adwords. 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 simple to see how someone with a high traffic site can generate quite a bit of revenue by teaming up with 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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