Google Adsense is small contextual ads that are published on web sites with the consent of the web site's owner. The ads are created by publishers that are selling products and/or creating brand awareness. Adwords is what these ads are termed and it is a program sponsored by Google.
Google Adwords and Adsense operate in parallel. 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. 'Pay per click' is the term that was coined for this.
The beauty of Adsense lies in the fact that the person who owns or hosts the web site 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. It is a well guarded secret what the percentage of the split is, and it does vary, but for our purposes let's say it's 50%.
Google and the host of the web site split the money paid by the publisher. So if a publisher paid .40 per click for his Adwords ad, then the host of the web site 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 web site. So essentially, there is a sort of partnership that is developed between the web site owners and Google.
The fact that its placement is highly relevant is one of the most attractive qualities of the Adsense program. How is this achieved? Well, probably the best way to illustrate this would be through an example. Mary has a web site featuring women's clothing. If Mary wished to utilize the Google Adsense scheme on her website, the ads would be for women's clothing. If one of her pages focussed on shoes, then the Adsense ad there would also focus on shoes.
So how do we determine the price per click? The Adwords program takes care of this. Adwords publishers place bids on various keywords. If a keyword is particularly sought after, then the publisher will pay more per click. The value of keywords can be anywhere from a few cents to over $50 for each click.
It is not very hard to see how someone with a web site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their web site. Specific content is created by Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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