Google describes AdSense as "a fast and easy way for web site publishers of all sizes to display relevant Google ads on their web site's content pages and earn money." The AdSense ads displayed by Google on your site are matched to Google's interpretation of the content theme of your site. In this manner, the AdSense ads will be of interest to your site visitors looking for the unique content your site offers to them.



AdSense is a system where Google places its AdWords ads on the content pages of non-Google web sites. It is a pay-per- click (PPC) service where webmasters are paid a portion of the revenue collected by Google from the advertisers. The advertiser pays Google a pre-determined amount each time a web site visitor clicks on an AdSense advertisement.

AdWords is the Source of AdSense Income

AdWords ads are the source of all the AdSense income you are able to generate. As a result, you need to fully understand the AdWords system in order to appreciate how the AdSense system works.

Google describes AdWords as "a quick and simple way to purchase highly targeted cost-per-click (CPC) advertising, regardless of your budget." These paid ads (sponsored links) are displayed by Google on the search engine results page along with the non-paid (natural results) for a given keyword search.

In order to create a Google AdWords ad, it is necessary to specify what keyword or keyword phrase must be input by the visitor before your AdWords ad will be displayed. In addition, you need to set the maximum amount that you will pay to Google for each click on your Adwords.

There is a nominal activation fee but Google does not have a minimum monthly charge. Google provides an account Control Center that allows you to track the performance of your ad. The ad will be displayed within minutes to the searchers after your account billing information has been submitted to Google.

AdWords ads must adhere to specific Google requirements. The title can contain up to 25 characters, the ad text can have up to 70 characters and the display URL must be less than 36 characters.

AdWords Ranking

Google will rank an AdWords ad based on the maximum CPC, the click through rate (CTR) and the relevancy of the ad text. Google prefers relevant and well-targeted AdWords ads. Google determines ad placement using the value formula: CPC x CTR. The ad is placed higher as the valuation rises. It's possible for an advertiser to have a high rank position with a low CPC if the CTR makes the value to Google higher than other ads with a higher CPC.

Google requires a minimum CTR in order to protect the AdWords program value for its users. The CTR of all AdWords ads are monitored by Google on a continuous basis. An under-performing AdWords ad may be disabled by Google if the CTR does not improve.

AdSense Program

You need to apply and be accepted by Google before you can display the AdSense ads on your web site. They are very particular about the sites that are eligible and accepted. Google's name is on the ads and they cannot risk hurting the perceived value of the AdSense and AdWords programs.

Google requires you to comply with their program policies if your website is accepted into the AdSense program. Otherwise, your website may be dropped from the program.

Your site must be content-focused to be accepted. Google wants sites that offer high quality information or rich in relevant content. You should have lots of interesting and informative content for your site visitors.

As previously mentioned, AdSense is a program in which you get paid for your web site visitors clicking on targeted AdWords ads placed on your site. A click through is when a visitor clicks on one of the ads. The ads are placed in a display box that you put on your website in a location that earns you money.

You have a chance to make a significant amount of money if the AdSense box is placed in a strategic location on your site and you have sufficient targeted traffic.

The AdWords advertiser pays as little as $0.05 per click up to $100 per click depending on the unique keywords. The AdWords campaigns are usually budgeted for a specific period of time by the advertisers.