Term: Adsense
Adsense is an ad-serving program run by Google period. Any webmaster can get it installed on his website to earn advertising money. This means that you will monetize your website, perhaps you heard of the term monetizing your website. This is the fastest way. Anyway, here is an example.
You create a website full of content about football. You write about balls, goals, shirts, players, accessories and other football interests, after that you signup for Google Adsense. You choose the type, look, position for your Adsense banner. After Google reviews your site, and if they approve it, your Adsense start to show up. Only relevant ads to your site content show up. Remember what I said, that is company’s policy - relevancy! Therefore, if across the country somebody paid their ads to show up on keyword football t-shirt their ad may appear on your site. If you want your ads to show up on somebody’s Adsense you need to signup for Adwords. Adsense is kind of a marketing platform for Adwords.
All this is Adsense for content. You also have a Adsense for search. You install a Google search bar on you site, and when somebody looks for any keyword, appropriate ads show up. Now where is all the monetizing I was talking about? Again like in Adwords, don’t click on your own ads, Google is smarter than that.
When somebody clicks on any ad on your site (content or search) you receive a percentage of value of that ad. Lets say somebody paid for 5$ if anybody clicks on his ad, and that ad shows up on your site, and somebody clicks on that ad. You receive a percentage, a speculative 30% of the click. So you would get 1.5$ on your account. Now you know where Google’s income is coming from. You must remember that if digg.com gets 250.000$ monthly Google probably gets around 525.000$ just from Digg. In addition, all they make directly on Google.com. So remember that Google wants You to make money.
You can receive it by showing ads eCPM (Effective Cost Per Mille), or by receiving clicks CPC (Cost Per Click) I have explained both of those terms. You can read more about Adsense in its own category.