With the consent of site owner small contextual ads are published which is known as Google Adsense. The ads are created for selling products and/or creating brand awareness by publishers. The ads that are created are called Adwords which is a Google sponsored program.
Google Adwords and Adsense go together hand in hand. Every time someone clicks on a sponsored ad after they have done a search on Google or one of their partner networks, Google gets paid a predetermined price by the person who created the ad. 'Pay per click' is the term that was coined for this.
Now the beauty of Adsense is that the person who owns or hosts the site that the Adwords ads appear on will split the amount of money that Google receives 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%.
The host of the site that displays the Adsense ad can receive .20 when that ad is clicked, if the publisher is paying .40 in total for the Adwords ad. Google keeps the remaining .20. This indicates how the site owners and Google are partners in this scheme.
Adsense is shown in the most relevant way possible. What does this mean? Well, probably an example would be the best way to illustrate this. Let's assume a website featuring women's clothing that is owned by Mary. Google Adsense once Mary decides to monetize her site can help her to show ads on her site that would be related to clothing or to be more specific, women's clothing. If shoes were the central theme in one of the pages of her site, women's shoes would be what the Adsense ads would be for.
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. When a keyword is more lucrative or sought after, the publisher is willing to pay more for each click. Sometimes a keyword is in excess of $50 per click or sometimes a few cents per click.
It wouldn't be surprising to see someone making some nice money by putting Google Adsense on their site and if their site is generating a decent amount of traffic. 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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