Google Adsense has become familiar, though not a spectacular deal, to most of the Internet marketing community at this point for earning money. Adsense can be worthwhile if you have a good understanding of it as you can be earning money through Google Adsense.
Contextual ads are incorporated into a website after Google Adsense has gained the owner's permission. Publishers create the ads in order to either sell, or create brand awareness. These ads are named Adwords, which is also 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".
Now the beauty of Adsense is that the person who owns or hosts the website 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%.
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. Google keeps the remaining .20. So basically it is a partnership of sorts between Google and website owners.
Adsense is shown in the most relevant way possible. What does this mean? Well, probably the best way to illustrate this would be through an example. Imagine a women's clothing website owned by Mary. If Mary wanted to monetize her website with Google Adsense the ads that would be shown would all be related to clothing, and more precisely, women's clothing. If one of her pages focussed on shoes, then the Adsense ad there would also focus on shoes.
So what determines the price per click? What comes in here is the Adwords side of the equation. Publishers of Adwords bid on keywords. The publisher will be willing to pay more for each click if the keyword is more lucrative or sought after. 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. Specific content is created by Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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