Google Adsense is an advertising program, which can be used by the publishers of websites or blogs, to earn money using their website or blog. In other means, Google Inc. set up this Adsense program to find the most suitable places to place their advertisements collected by the Google Adwords program.
To make money using Adsense, you must publish suitable and effective website(s) or blogs to place Adword ads. This is not hard work. The success depends on your commitment and the time you spend to optimize your website or blog.
In order to understand Adsense correctly, you must understand what “Google-Adwords” is. Adwords is a pay-per-click advertising program using keywords. The Advertisers create small, text ads related to the chosen keywords considering the advertiser's subject, topic, product or service. These ads are placed on the web pages containing those keywords, by using Google's Adsense program. When a visitor clicks one of those ads, he will be directed to the relevant web page, and the advertiser will have to pay a certain amount to Google. (This process explains the name – Pay-per-click) The “certain amount” is called a Bid. This bidding process is almost the same as any other auction process.
This 'bid' value depends on the amount that an advertiser places on the relevant keywords. For an example, if the highest bid for the keywords “Internet Money” is 1.00 USD per click, another advertiser can bid 1.10 USD and gain the higher position of the series of ads related to those keywords. Then every time a visitor clicks on that ad, advertiser pays 1.10 USD to Google. This process is fully automated.
By placing these Adwords ads on your web page by using Adsense, You can earn a share (50% according to the specialists) of the pay per click amount.
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