Small contextual ads published on web sites with the consent of the website owner is Google Adsense. The ads are created for selling products and/or creating brand awareness by publishers. The created ads are called Adwords that is also a Google sponsored program.
Google Adwords combines and work together with Adsense. 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 Adsense program allows the owner of the website where the Adwords ads appear to split the amount of money that Google has taken from the creator of the ad. The size of this percentage split is a secret, but for our calculations we will assume 50%.
If a publisher is willing to pay .40 per click for his Adwords ad, then Google get .20 and the host of the website that welcomes Adsense can expect go get .20 every time someone clicks on the ad that appears on their website. So Google and website owners are sort of like partners in this.
Adsense is shown in the most relevant way possible. What does this mean? Well, let me give an example that probably illustrates it best. Let's say a website owned by Mary features women's clothing. If Mary decided to make money through her website with Google Adsense, then the ads that would be shown on her website would be related to clothing or women's clothing to be more precise. In her website if shoes are dedicated to a particular page, then on that page there would be Adsense ads appearing for women's shoes.
So how do we calculate how much revenue a click generates? This calculation is taken care of by the Adwords scheme. Keywords are bid on by Adwords publishers. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. Keywords range anywhere from a few cents to in excess of $50 per click.
It is not very hard to see how someone with a website that generates a decent amount of traffic can make some nice money by putting Google Adsense on their website. 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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