How Does Adsense Work?
What is AdSense, and how does AdSense work? Good questions! Google AdSense is an online advertising program owned and operated by Google. (AdSense was created by a smaller company called Oingo, which Google acquired in 2003.) It's tremendously popular, and has helped level the online advertising playing field by allowing small businesses to advertise alongside their larger rivals.
First of all, how does AdSense work for advertisers? Advertisers join the Google AdSense network, and supply their own ads using video, images and/or other media. Then advertisers either request specific websites they want their ads to appear on, or they provide a list of keywords they want those sites to include; a bidding system has been created for the most popular keywords. For instance, if your company sells homemade skis, you might request that your ads appear on sites and blogs which include keywords like "downhill skiing," "winter resorts," and so on. Google's servers will match ads and sites through keywords using advanced contextual targeting algorithms. And advertisers must also decide if they want to pay on a pay-per-click basis, or if they want to pay on a pay-per-mille basis (whereby they pay for every thousand ad impressions).
Now, how does AdSense work for website owners? Site owners who join the AdSense Program agree to let Google place ads on their sites at their (Google's) discretion, though webmasters can filter ads and can customize ads so they'll match the rest of the site in terms of color and style. Site owners earn a cut of all money that their advertisers pay Google.
Finally, how does AdSense work for Google? Well, Google earns a cut of all advertising money as well, so it works very well for them.