Google Adsense is small contextual ads that are published on web sites with the consent of the website's owner. 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. After doing a search on Google or one of their partner networks, if the user clicks on an ad then the person who created that ad pays Google a certain amount. This has become known as "pay per click".
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. For our purposes, let's assume the split is 50%, but it is a well guarded secret what exactly the percentage of the split is, but it does vary.
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.
In the most relevant way possible Adsense is shown. What does this entail? Well, probably an example would be the best way to illustrate this. 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 what determines the price per click? What comes in here is the Adwords side of the equation. The keywords are bid on by publishers of Adwords. The publisher will be willing to pay more for each click if the keyword is more lucrative or sought after. Keywords can be as high as $50 and above per click or as low as 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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