With the consent of website owner small contextual ads are published which is known as Google Adsense. Publishers that are selling products and/or creating brand awareness create the ads. Adwords is what these ads are termed and it is a program sponsored by Google.
Google Adwords and Adsense run hand in hand. Every time someone does a search on Google or one of their partner networks and clicks on one of the sponsored ads, then the person who created that ad will pay Google a predetermined price. This is where the term "pay per click" comes from.
Google has to split the money they receive from the creator or publisher of the ad with the person who owns or hosts the website that the Adwords ads appear and that is the uniqueness of Adsense. The percentage of the split does very and it is a well guarded secret what the percentage of the split it, but let's say it's 50% for our purposes.
If the ad creator is fine to pay .40 per click for his Adwords ad, then the website host who has joined the Adsense scheme can expect to receive approximately .20 when the ad is clicked. The remaining .20 belongs to Google. This indicates how the website owners and Google are partners in this scheme.
Adsense is shown in the most relevant way possible. How so? Well, probably the best way to illustrate this would be through an example. Mary has a website featuring women's clothing. If Mary wished to utilize the Google Adsense scheme on her website, the ads would be for women's clothing. An Adsense ad appearing on a particular page dedicated to shoes would also focus on shoes.
So how is the price per click determined? This is where the Adwords side of the equation kicks in. Publishers who create Adwords bid on keywords. The publisher will pay more per click depending upon how lucrative or sought after the keyword is. Sometimes a keyword is in excess of $50 per click or sometimes a few cents per 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. 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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