With the consent of web site 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. The ads that are created are called Adwords and they are also a Google sponsored program.
Google Adwords and Adsense run hand in hand. Google earns revenue from the ad creator if an ad is clicked after a user has performed a search on Google or one of their partner networks. This is described 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 web site 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.
The host of the web site that displays the Adsense ad can receive .20 when that ad is clicked, if the publisher is paying .40 in total for the Adwords ad. Google keeps the remaining .20. This indicates how the web site owners and Google are partners in this scheme.
In the most relevant way possible Adsense is shown. What does this entail? Well, probably this can be illustrated best through an example. Let's assume a website featuring women's clothing that is owned by Mary. Ads on clothing or specifically women's clothing can be shown on Mary's web site, if Mary decides to monetize her web site with Google Adsense. In her web site if shoes are dedicated to a particular page, then on that page there would be Adsense ads appearing for women's shoes.
So how is the price per click worked out? The Adwords program takes care of this. Adwords publishers bid on keywords. If a keyword is particularly sought after, then the publisher will pay more per click. Highly sought after keywords can be worth over $50 per click, while low value ones are only worth a few cents.
By putting Google Adsense on their web site, it wouldn't be a wonder to see them making some nice money if the web site 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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