Most of the Internet marketing community is at least somewhat familiar with earning money through Google Adsense at this point. Having a good working knowledge of Adsense is meaningful as it can help you establish a successful undertaking through Google Adsense (and earning money.)
With the consent of the website owner, small contextual ads called as Google Adsense are published on their sites. When selling products and/or creating brand awareness, publishers can create the ads. Adwords is what these ads are termed and it is a program sponsored by Google.
There is a very tight relationship between Google Adwords and Adsense. 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 described as "pay per click".
The beauty of Adsense lies in the fact that the person who owns or hosts the website 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. 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.
For example if the Adwords ad generates .40 per click, then the Adsense program pays the website host .20 when the ad is clicked on their website. The 50% that is left will be kept by Google. Google and the website owners can therefore be considered partners.
Adsense displays itself with high relevance. In what way? Well, probably the best way to illustrate this would be through an example. Mary has a website featuring women's clothing. If the Google Adsense scheme was deployed on Mary's website, the ads would all revolve around clothing, and in particular women's clothing. If a page of her website was dedicated to shoes, then the Adsense ads appearing on that page would be for women's shoes.
So what determines the price per click? Now is when the equation of Adwords comes 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. 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. Many Internet marketers will create web sites with specific content for the sole purpose of attracting high paying Adsense ads. -
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