AdSense is one of the best ways to monetize your web traffic. People see those little Ads by Google, tidbits and they click like crazy. How AdWords Works?
AdWords provides pay per click advertising to merchants who are willing to shell out anywhere from a minimum 0.05 per click all the way up to a maximum of $100 per click, Can you imagine anyone paying $100 just to have someone click on an ad.
Anyway, the advertiser joins the AdWords program and gets a control panel similar to the one that we AdSense users get. They can write their ads, pick their keywords, and establish an advertising budget.
Once an advertiser is happy with their ad, it gets released to the network and shows up on web sites like yours and mine. That is if the keywords on your site match the keyword requirements of the brand spanking new ad, of course.
Google does not simply push the people with the highest paying ads to the top of the SERP (Search Engine Results Page). They use a rather fair methodology that takes into consideration not only the maximum CPC (cost per click), but also includes a secret recipe for determining an ads placement based upon the number of clicks the ad receives. So, at least in theory, an ad paying 0.05 per click could rise above one paying $5.00 per click if it is more popular with Google audience.
Personally, I am not sure that I have the guts to invest a lot of money into hoping that people who click on my ad will actually buy something, since I still have to pay Google whether I make a sale or not.
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