While Google AdSense is an extremely user-friendly tool, it can take some time to figure out exactly how it works. You will need to become familiar with all of its features, how they work and how they can best be used to benefit your particular business, your business goals and your business needs.

Let’s take a look at some of the most basic steps involved in Google AdSense to better understand how it works.

You choose what and where AdSense ads will appear.

You will carefully select and specify what kinds of ads you would like to show up on your site as well as where on your site they will be placed. Google will ask you for keywords about your business, products and/or services that will help generate a topic or topics of ads that are relevant to your business.

Advertisers bid on ad placement in real-time.

Advertising space online is valuable real estate. That is why many advertisers are willing to pay for quality placement. With Google AdSense, the highest bidder always wins the spot. In other words, you won’t find advertisers with questionable businesses paying too much for advertising space, so the bidding system helps separate the ―good advertisers from the ―bad ones.

You get paid based on clickthrus.

Google bills those who win the bids and pay for advertising space. You then receive your payment based on the ads placed on your site and when/how often your site visitors are clicking on them.

Many people find it hard to believe that there is no fee for creating a Google AdSense account and allowing AdSense ads to be placed on your website. But the truth is, they only pay you when the ads are being clicked, so if you think about it, this method makes sense.

There is no need to pay them to advertise for others businesses. And in the same vein, they don’t pay you for simply placing the ads. There has to be positive activity in order for it to work on either end of the spectrum. The advertisers decide how much they are willing to pay for their ads (to be explored in Google AdWords) and you, as the one providing the advertising space, benefit from the ads’ effectiveness.

AdSense is also more than just advertising. With Google AdSense, you can choose to include one or all of their ―products as a way to increase your profit-earning potential through targeted advertising. For example, you can choose to place AdSense ads within your site (which are customizable and of course, targeted); you can also choose to include AdSense searches within your site (which help users and bring you a profit at the same time); or you can choose to place Google AdSense ads in your feeds. It’s up to you which, if not all, of these options you choose, but no matter how you look at it, Google AdSense just makes sense for business. Remember, the more you take advantage of Google AdSense products, the more you will benefit from it.

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