Google Adsense involves placing targeted ads on sites with the cooperation of the owner of that site. The ads are created by publishers that are selling products and/or creating brand awareness. These ads are named Adwords, which is also a program sponsored by Google.
Google Adwords and Adsense go together hand in hand. Google gets a predetermined price from the person who created the ad, every time someone who does a search on Google or one of their partner networks clicks on one of the sponsored ads. This is what is known as 'pay per click.'
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 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%.
If a publisher is willing to pay .40 per click for his Adwords ad, then the host of the website 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. This indicates how the site owners and Google are partners in this scheme.
In the most appropriate way Adsense is described. What does this signify? Well, probably the best way to illustrate this would be through an example. Let's assume a website featuring women's clothing that is owned by Mary. If Mary decided to make money through her site with Google Adsense, then the ads that would be shown on her site would be related to clothing or women's clothing to be more precise. If a page of her site was dedicated to shoes, then the Adsense ads appearing on that page would be for women's shoes.
So how is the price per click worked out? The Adwords program takes care of this. Adwords publishers work out the value of keywords and place bids on them. The amount that the publisher will pay per click is dependent on the value of the keyword. Highly sought after keywords can be worth over $50 per click, while low value ones are only worth a few cents.
Anyone with a site that generates a decent amount of traffic can make some nice money by putting Google Adsense on their site, you don't need rocket science to understand that. Specific content is created by Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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