Google Adsense is small contextual ads that are published on web sites with the consent of the site's owner. Publishers create the ads in order to either sell, or create brand awareness. The ads that are created are called Adwords and they are also a Google sponsored program.
The two programs of Google Adwords and Adsense run side by side. 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 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. Although the percentage split is a well guarded secret, for our purposes we can work on 50%.
The host of the 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. The other .20 is kept by Google. This indicates how the site owners and Google are partners in this scheme.
The fact that its placement is highly relevant is one of the most attractive qualities of the Adsense program. How is this achieved? An example will help in illustrating this. Imagine a women's clothing site owned by Mary. If Mary wanted to monetize her site with Google Adsense the ads that would be shown would all be related to clothing, and more precisely, women's clothing. An Adsense ad appearing on a particular page dedicated to shoes would also focus on shoes.
So how is the price per click determined? The Adwords side of the equation kicks in here. The keywords are bid on by publishers of Adwords. The more lucrative or sought after a keyword is, the more the publisher will be willing to pay for each click. Keywords can be as high as $50 and above per click or as low as a few cents per click.
It wouldn't be surprising to see someone making some nice money by putting Google Adsense on their site and if their site is generating a decent amount of traffic. Specific content is created by Internet marketers with the sole purpose of attracting high paying Adsense ads. -
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