What Is Google AdSense And How Does Google AdSense Work?

Three common questions that are usually asked by many new bloggers and other people who are newbies at making money online are; “What is Google AdSense”, “Where Can I Get Google AdSense” and “How Can I Make Money With Google AdSense”, so to get started we’ll look at What is Google AdSense and How Google AdSense Works then we’ll proceed to look at How To Sign Up For A Google AdSense Account, How To Make Money With Google AdSense, Google AdSense Tips and a list of some of the highest  Google AdSense Income Earners (bonus).

So What Is Google AdSense?

Google AdSense is a PPC program (Pay per Click) that allows publishers to earn extra money by displaying Google Ads otherwise known as Google AdSense Ads on their respective websites or blogs.

In simpler terms, Google offers to give you money for displaying their AdSense Ads on your site but the only catch is that the Google AdSense Ads MUST receive either direct or indirect interaction from other people and not you.

There are 2 main ways on how you can make money with Google AdSense and we’ll now look at how Google AdSense works in an effort to better understand how Google AdSense income can be generated.

How Google AdSense Works And How You Can Generate AdSense Income

As earlier on said, Google AdSense is all about Google offering to give you money for displaying their ads on your site with the only requirement being that the Ads receive either direct or indirect interaction from your site visitors (at least if you want to receive AdSense income) and they do this using the below two methods:

PPC and CPC-PPC (Pay Per Click) simply means that you are paid for every click that the Google AdSense Ads receive from your site visitors and this payment is calculated on the basis of the CPC (Cost Per Click) which as the name suggests is the price for every click e.g. some Google AdSense Ads can give you $0.05 per click whereas others can give you as much as $10 for a single click.

CPM-CPM (Cost Per Mile) is where Google pays you for every 1000 impressions that your Google AdSense Ads receive. CPM is usually responsible for the Google AdSense earnings of sites that receive massive traffic e.g. news blogs like the Huffington post.

Let me mention that Google AdSense Income is calculated as a combination of both the CPC and CPM i.e. Google pays you for every click that your Google AdSense Ads receive as well as after every 1000 impressions that your Google AdSense ads receive.

So Where Do The Google AdSense Ads Come From?

The AdSense Ads that Google will serve on your website or blog comes mainly from other advertisers who have paid Google for their ads to be displayed to their target audience based on their search terms.

Here’s an example to show you what I mean:

Let’s assume that I’m a car salesman and I have a fleet of cars that I want to sell. One of the ways in which I can make sales is by hiring several people to physically help me find buyers for my cars though this in the end translates into additional costs that I could have otherwise avoided e.g. Paying all the employees and catering for their expenses (transport and insurance). The other way in which I can make sales is by putting up ads in the media e.g. in a local newspaper or on television, but the issue here is that the advertising costs might be too much than I can handle resulting in me making a loss rather than a profit. The other alternative might be to pay Google to display my ads on their search engine as well as on their publishers’ sites (people who display Google AdSense Ads on their sites).

The last alternative might be more beneficial for me in monetary terms since Google will only display my Ads to the right audience i.e. on their search engine when people search terms related with buying cars e.g. where can I buy a car in New York, as well as on their publishers websites whose niche is relevant to my Ad e.g. If a blogger has chosen a niche to do with cars and where to buy them, then my Ad will appear on their blog and other relevant blog posts. The best part about this is that I might even get a customer at a price of maybe $5 or less if my campaign is cleverly though of and effective enough.

Let me also mention that whereas publishers use Google AdSense to make money from Google in the form of AdSense Income, Advertisers in turn use Google Adwords to prepare their ads which if well planned out will result in their business growing even more.

Caution On Using Google AdSense

Never click on your Google AdSense Ads! Clicking on them will result in Google being suspicious of your activities and you’ll lose your Google AdSense account once they catch up to your tricks.

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