With the consent of site owner small contextual ads are published which is known as Google Adsense. The ads are created for selling products and/or creating brand awareness by publishers. 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. Whenever an ad is clicked by a user performing a search on Google or one of their partner networks, the ad creator pays an amount of money to Google. This is where the term "pay per click" comes from.
Where Adsense comes into its own, is that the site owner or host receives a portion of the money that Google has received from the creator of the Adwords ad. It is not common knowledge exactly what the percentage split is, and it is not always the same, but let's assume for our purposes 50%.
For example if the Adwords ad generates .40 per click, then the Adsense program pays the site host .20 when the ad is clicked on their site. The remaining .20 belongs to Google. Google and the site owners can therefore be considered partners.
Adsense is shown in the most appropriate manner possible. What does this indicate? Well, let me give an example that probably illustrates it best. Mary had a site, let's say, featuring women's clothing. Google Adsense once Mary decides to monetize her site can help her to show ads on her site that would be related to clothing or to be more specific, women's clothing. The Adsense ads would be appearing specifically for women's shoes if a page of her site was dedicated to shoes.
So how is the price per click determined? The Adwords program takes care of this. Adwords publishers place bids on various keywords. A more sought after keyword will result in the publisher paying more for each click. The range of values for each keyword can be from a few cents to more than $50 per 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. Many Internet marketers have put sites on the web with specific content, just to attract the high paying Adsense ads. -
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