Google AdSense is an advertising program that was launched in 2003 by Google. Google acts as a mediator between a vast quota of advertisers and an equally notable quota of website owners.
Advertisers sign up with Google and create text ads that they would like to be displayed. Google displays these ads on the results pages of a search that people performed Google.com.
Google AdSense permits these ads to show up on pages all over the internet. To generate ads on a page the webmaster simply places a individual code in their webpage and Google AdSense takes care of the rest.
Some would say the most valuable feature of the system is that robots (specialized computer programs that scan internet pages) analyze pages that have adverts on them to establish which ads are most relevant to the page's content.
The relevancy of adverts placed by AdSense varies on all sorts of criteria, but most ads are usually very relevant to the page on which the advert is displayed.
Advertisers pay Google a particular amount for each time one of their advertisements are clicked. Google keeps a portion of this payment and gives the rest to the owner of the website itself.
Page views of the advertisements are irrelevant in terms of making money in the program - commissions are only generated when internet users actually click on the adverts themselves.
Google AdSense checks are sent out on a monthly basis. Many webmasters use Google AdSense as a means of claiming back some of the money they put into their website and some even turn out a profit.