Adwords, also through Google, is a very clever program that allows businesses to post ads at a cost-per-click basis. Cost-per-click means that the advertiser only pays when someone clicks on their ad. Here's how it works:
- Andrew Braddock wants to advertise his mortgage business.
- Sets up an account with Google Adwords and creates a text advertisement.
- His advertisement will pop up on any website using Adsense, more often on sites he wants to target, specifically ones seeking mortgages.
- He allots for $1,000 to be spent at $1.00 per click on his advertisements.
- After 1 week, his ad showed up 500 times across a slew of websites, but only 25 people clicked on his ad, linking them to his mortgage website. He paid out $25.00 total even though his ad showed up 500 times.
Now, here's how using adsense makes money. Let's say I make a website about home mortgages, and I use adsense on my site. Andrew Braddock's advertisement appears on my site, and one of my visitors clicks on his ad. When this happens, I am paid around the $1.00 he set aside for the click!
That's how Adsense works!
When someone clicks an advertisement on your website, you make money. Simple and easy!
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