With the consent of website 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. The ads that are created are called Adwords which is a Google sponsored program.
There is a very tight relationship between Google Adwords and Adsense. 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 described as "pay per click".
Now the beauty of Adsense is that the person who owns or hosts the website that the Adwords ads appear on will split the amount of money that Google receives from the creator or publisher of the 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%.
The host of the website 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 website owners and Google are partners in this scheme.
Adsense is shown in the most appropriate manner possible. What does this indicate? Well, probably this can be illustrated best through an example. Let's assume a website featuring women's clothing that is owned by Mary. Google Adsense once Mary decides to monetize her website can help her to show ads on her website that would be related to clothing or to be more specific, women's clothing. If a page of her website was dedicated to shoes, then the Adsense ads appearing on that page would be for women's shoes.
So how do we determine the price per click? The Adwords program takes care of this. Adwords publishers place bids on various keywords. If a keyword is particularly sought after, then the publisher will pay more per click. Keywords range anywhere from a few cents to in excess of $50 per click.
Anyone with a website that generates a decent amount of traffic can make some nice money by putting Google Adsense on their website, 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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