What is Google AdSense

Google AdSense is Advertising program that was launched in the middle of the year 2003 by Google ,the one of the most popular search engine.AdSense is the hybrid of the Google webmaster tool called AdWords or in simple terms, AdSense is an application of AdWords beyond Google.com

AdWords:
Webmaster are paying Google to promote their ads on Google.com and every time an ads get clicked some predetermined amount is deducted by from their advertising budget.




If you have ever searched on Google,you have seen AdWords (the small text ads that are displayed generally on the far right hand side of the search results in Google). AdWords are the ads that are contextual of course (in this case the context is the search term you entered).The ads will be served based on what you are looking for, so if you do a search on catering services you will get ads for catering services along with your search results.


How does google generate money for Google and the advertisers::

Google AdWords work on the model know as pay-per-click.When some one clicks on an AdWords ad,the advertiser of that ad has to pay Google a certain amount.It is easy to track and fully automated.
We say certain amount because the amount is different all the time and is subjected to market forces that is bidding in this case and what determines is how much the advertisers offers to pay per click.The position of AdWords ad is based on the bidding amount of the keywords of an ad.Obviously,the higher the bid,higher the position the bid buys you.For instance,if the highest bid for keywords "Internet Marketing " is 80 cents per click,you can get top position by bidding 90 cents.Then every time someone clicks on your ad,Google would charge you 90 cents,and you would retain the top position until someone else bids more for the same search word placement

Now AdSense is a program derived from AdWords that allows the publishers(the other website and blog holders like you and me ) to promote these same AdWords ads on our own sites.Then the Google pays publishers certain percentage of what AdWords customer are paying Google for those ads.

In other words as an AdSense publisher ,you are helping Google advertise these AdWords ads,and Google is paying you a share of revenue they earn every time your visitors click on your ads.

Google will never disclose how much you will earn per click,but you can earn anywhere between 0.01$ and $10.00 per click,and perhaps even more.Keep in mind these numbers are just estimates.Google has never supplied any specific data on how much you can earn.So once your account reaches $100,Google sends you a check.And you can even have them direct deposit the check right into your bank account.