Google Adsense is small contextual ads that are published on web sites with the consent of the site's owner. Publishers that are selling products and/or creating brand awareness create the ads. The created ads are called Adwords that is also a Google sponsored program.
Google Adwords and Adsense operate in parallel. Every time someone clicks on a sponsored ad after they have done a search on Google or one of their partner networks, Google gets paid a predetermined price by the person who created the ad. This is where the term "pay per click" comes from.
This money that Google has received from the Adwords ad creator is then split with the owner of the site, which is what makes Adsense so beneficial. Although the percentage split is a well guarded secret, for our purposes we can work on 50%.
If a publisher is willing to pay .40 per click for his Adwords ad, then the host of the site that welcomes Adsense can expect to see roughly .20 every time someone clicks on that ad that appears on their site. The other .20 is kept by Google. So essentially, there is a sort of partnership that is developed between the site owners and Google.
Adsense is shown in the most appropriate manner possible. What does this indicate? Well, probably this can be illustrated best through an example. Mary had a site, let's say, featuring women's clothing. Ads on clothing or specifically women's clothing can be shown on Mary's site, if Mary decides to monetize her site with Google Adsense. If shoes were the central theme in one of the pages of her site, women's shoes would be what the Adsense ads would be for.
So how is the price per click determined? This calculation is taken care of by the Adwords scheme. Keywords are bid on by Adwords publishers. If a keyword is particularly sought after, then the publisher will pay more per click. The value of keywords can be anywhere from a few cents to over $50 for each click.
It is not very hard to see how someone with a site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their site. With the sole purpose of attracting high paying Adsense ads, many Internet marketers create web sites with specific content. -
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