First the basics. Google Adsense is a system that allows website owners to display ads on their sites. Publishers are not payed by the number of ads displayed, neither by the size of the ads. They are not even payed by how many times the ads are displayed as it is done in traditional advertising, like print or TV. The publishers are payed by the number of clicks on the ads.
On the other side of the equasion, we have Google Adwords, that allows business owners to buy ads to be displayed on Google Adsense participant's sites. Advertisers need to specify keywords that match they advertisements. Google will match these keywords found on publisher sites and display relevant ads.
This sounds and works great. It's a great business for publishers to get a steady revenue, great way for businesses to publicize their websites to a targeted audience. And, it's a million dollar business for Google...
I've been on both sides. I'm running Google ads on this site as a publisher and do Adword campaigns for clients. I have a few reservations that I'd like to share...
thanks to Ivan for the info...
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