Most of the Internet marketing population has caught on to the power of Google AdSense by now. Google AdSense can be a very profitable venture for many webmasters so it is important to have a good understanding of how Google AdSense works.

How Google AdSense Works is by placing a snippent of code that allows small contextual ads to be published on your web sites. The ads are created by advertisers who are utilizing the Google AdWords program and are allowing their ads to show up in content related results like AdSense.

AdWords plays a vital role in determining how Google AdSense works. Both programs are dependent upon one another. Every time a person searches for something on Google and clicks on one of the sponsored ads, then the person that created the ad pays Google a set price. This is where the term "pay per click" comes from.

So how is the price or cost per click determined? Well, AdWords publishers bid on specific keywords for their ads to show under. The more profitable or competitive a search term is, the more they might have to pay for each click. Depending on the competition for that keyword the advertiser might pay anywhere from .10 cents to almost $10.00 for that click. So how does Google AdSense fit into this equation?

The beauty of how Google AdSense works is that by putting the AdSense code into your web pages and allowing these AdWords ads to show Google will split the money it receives from the creator of the ad with you when a visitor to your site clicks on one of these ads. It is a well guarded secret what the percentage of the split is, and it does vary, but many speculate that it can be as high as 50%.

So if the creator of the ad is willing to pay .40 per click, then the you can expect to see roughly .20 every time someone clicks on that ad. The other .20 is kept by Google of course. So basically how Google AdSense works is that it is a partnership between Google and webmasters.

Another key factor of how Google AdSense Works is that it will only show ads relevant to the topic of your webpage. What does this mean? Well, for example, lets say that Robert has a website about golf and wants to make money from his site using Google AdSense ads. By placing the AdSense code on his site the ads that would be shown would all be related to golf, and if he had a webpage about more specific areas of golf like golf apparel for example then the adds on that page would most likely be for golfing apparel vendors and the like. Are you understanding the awesome power of how Google AdSense works now.

It is not very difficult to see how someone with a web site that receives a fair amount of traffic can make some easy money by learning how Google AdSense works and implementing it into their site. Heck, there are many webmasters that will create web sites about specific content for the sole purpose of attracting high paying AdSense ads. So whatever your reason for wanting to learn how Google AdSense works, if you own a website or blog it is definitely a worth while endeavor to ad some AdSense code to your webpages.