GOOGLE ADSENSE
Google Adsense is an online advertising serving service that displays contextual pay per click or pay per view Ads on websites. Adsense Ads are tailored to match contents on your website. Web publishers who subscribe to Google Adsense make money when a visitor to their website finds an Ad so interesting as to click on it. Making money on Adsense happens when an Ad is clicked; the visitor is then taken to the website of the advertiser for more information about the Google Ad, while the publisher on whose site the Adsense Ad was clicked makes money.

Adsense also displays pay per view Ads. If an advertiser chooses pay per view, the publisher makes money each time the Ad is viewed (makes an impression).

Adsense Ads are tailored to match contents on your website. Adsense send crawlers to each page on your website to find out what your website is all about and then look for Ads within Google Adword network that best matches contents on your website. The only way Adsense crawler will know what your website is about is if you write purposeful web pages.
Purposeful pages target specific keywords. For Adsense Ads on your website to be properly matched by your content, you should target specific keywords. Writing web pages that do not have purpose will lead to Adsense Ads on your website not being properly matched with your content, which will lead to fewer clicks on such Adsense Ads. Fewer clicks mean poor conversion or earnings.

Making money on Adsense also depends on your Ad placement. Position your Adsense Ads where your visitors will see them. Of course, visitors to your website will not click on your Ads if they do not see them. Therefore, find out where your visitors eyes usually go when they visit your website and place your Adsense Ads in those locations.

You should also customise your Adsense Ads to blend with contents on your website. It is always a good idea to remove borders from your Adsense Ad. Adsense link units should look similar to links on your website. Your Adsense Ads should look as part of your website.

Use Adsense channels to find out which Ad units perform the best on your website. With Adsense channels, you can research on best Ad placements for your website.

So far, we have focused on how to make money from Adsense by placing Ads on your website, but there are more ways of making money from Adsense, Adsense for content is just one of it. Here is a brief on how other Adsense money making opportunities work. Future articles will highlight more on each method.

Making money from Adsense for search: in this method you place a one or two search boxes on your website. When visitors search using your search box, Google Adsense will display Ads beside search results. If the visitor clicks any Ad you make money.

Making money from Adsense for Domains: if you have vacant domains, you can make money from them using Adsense for domains. Google will populate the site with Ads and you will make money if a visitor clicks on those Ads.
Making money from Adsense for Feeds: you can place adsense Ads on your website feed, you make money when an Ad is clicked.
Making money from Adsense for games: if you are an online game developer, Adsense allows you make money from your games. You allow visitors to play games online free, then use Ads to make money.

Making money from Adsense for mobile: if you have a mobile website, you can make money via Adsense for mobile.
How does Google Adsense work?
Google acts like middle man between advertisers and publishers. Advertisers use the Google Adword to setup their Ad campaign. In the Setup they select how-much they a willing to pay for a click or view, keywords they are interested in, regions of interest, and so on.

Publishers register via Google Adsense. Once accepted Adsense robots will crawl site for keywords. The site will be matched with Ads from Adword with relevant keywords.

If a visitor to a site clicks on an Adsense Ad, the advertiser is billed on Adword, while Google credits a share of this earning into the Adsense account of the publisher.