How does Google Adsense work is a question to which all who have a website or blog on the Internet should know the answer as it is likely that Google Adsense will be one of the most profitable ways in which they can monetise their blog or website, provided they use it effectively and take careful heed of the associated rules and regulations.
Google Adsense is a service run by Google which brings advertisers together with those willing to include relevant ads upon their website or blog. Advertisers subscribe to Google Adwords and are charged, while Webmasters and bloggers subscribe to Google Adsense and are paid.
In order to use Google Adsense, it is required that one first apply for an account. When the account is approved, the individual will be assigned an account reference code, which they will be required to implant somewhere in their website or blog. The way in which this is done will vary hugely from site to site but help is available on the Google Adsense site and should hopefully also be available from the Web hosting platform.
When this code has been implanted on the site, Google will crawl the site and determine its subject nature. Google will then populate the site with ads relevant to its content, usually in areas designated by the Webmaster or blogger. It is likely that on their site, the administrator will be easily able to designate these areas where the ads appear. For example, on Google's own blogging platform, Blogger, the blogger is required to add Adsense panels in the peripheral area of their site to the extent which they wish ads to appear.
When a visitor to the site clicks on one of these ads, the advertiser will be charged and the Webmaster or blogger upon whose site the ad appears will earn a revenue. This revenue is added to their Google Adsense account and payout is achieved when the revenue reaches one hundred US dollars or stipulated currency equivalent.
It is imperative that Google Adsense accounts are not misused by those who have them. Misuse would include clicking on one's own ads in a misguided attempt to generate revenue or encouraging third parties to do so. This is deemed click fraud by Google and can lead to an account being suspended or even cancelled altogether.
Google Adsense is an excellent system, largely maintenance free, and provided it is used in the spirit it is intended to be used, can be a very effective revenue generating tool.