How Google AdSense Works?

Using Google Advertising to Boost Site Revenue

Google AdSense is an easy way to monetize most websites and blogs. The Google advertising system places text and graphic ads onto websites that sign up for the program and install a basic JavaScript code onto each page that will carry a block of Google advertising.
The advertisers are people who have signed up through Google AdWords to advertise their websites or their affiliate links. Those who advertise through Google AdWords choose keywords and pay for their advertising to be seen by those who have those keywords on their sites.

Using Google AdSense to Monetize a Site

Many sites and blogs are monetized with AdSense because it's easy and automatic. Once the code has been added to the page, AdSense automatically delivers the right ads that correspond to the content on the page. The ads chosen by AdSense generally correspond to the advertiser's chosen keywords.
A website or blog owner who is using Google advertising to monetize their site will often use keywords that correspond to ads that will interest the site's readers. Though the site owner can't specifically choose which Google ad that appears on the site, he can choose the type of ads that appear by adding keywords into the text on the page.

Google AdSense Revenue

Most Google advertising runs on the pay-per-click model. Revenue is generated each time a reader sees a Google ad that interests them and they click the ad to learn more. Bloggers and site owners who use Google AdSense for revenue seek higher traffic numbers in order to raise revenues, though higher revenues don't always follow more traffic.
While the amount of traffic to a site often means more readers who click ads, leading to higher revenue coming in, the actual amount of money made per click depends on the keywords used and the competition for those keywords. If competition among advertisers is high, the price for each click goes up. Low-competition keywords may earn the site owner as little as .01 for a reader click.
Google AdSense revenue is payable by check or by direct bank deposit for those who verify their bank account with Google. The minimum payment amount is $100, and payment is made 30 days after the end of the month in which the minimum has been reached. If the minimum is not met, the revenue carries over to the next month.

Customizing Google Advertising

One reason for the popularity of Google advertising is that it can be added to a page in blocks of various sizes. These range from a long, thin block of ads that stretches across the top or bottom of a page to one small Google ad that inhabits a quiet corner of a page. The colors and overall look of the ads are also customizable, making it easy to make the ads blend in with the design of a page.