AdSense is Google's
syndication program for its AdWords advertisements.

To understand Adsense clearly, you have to understand how
the Google Adwords works.

AdWords are small text-only ads that appear on the right
hand side of Google's search results page when you do a
search. Adwords is so powerful advertising program.

They are 100% keyword targeted: Base on a keyword, the
advertiser can target thier niche market. This means that
your ad appear only in front of people actively looking for
information about a topic.

For example you sell green tea diet product, with Adwords
you can set your keyword "green tea diet" so that they show
up only when someone enters "green tea diet" into Google's
search box.

As advertiser, You only pay for click thrus. If no one
clicks on your ad you don't pay anything.

Ok, this is what Adwords all about in general.

So where does AdSense come in this? Well, Google has taken
their excellent AdWords program and syndicate it to
publisher sites and branded it as AdSense.

However, AdSense differs from AdWords in that Google,
instead of looking at the search terms entered into its
search box to determine what ads to show, looks at what
keywords would be relevant to publisher site.

For example, if you have a site rich in content about green
tea diet, AdSense determines that it would be an
appropriate site to post AdWord ads about green tea diet
on. Whenever someone views your page, this Adsense code
fetches ads from Google. If visitors then c'lick on your
adsense ad, Google charges the advertiser a click through
fee and shares a revenue it with you.

Base on the related contents on your website google will
publish thier ads on your website and if your visitors
click on any of this ads you will earn money...as simple as
that. The longer they surfing on your website the higher
the possibility they will click your ads.

The rule is that... you get paid per click -- not per page
view. So build more targeted content on your website
because this will help you to get more related Ads
appeared... and more clicks.

MORE TIPS: http://learnadsensetricks.blogspot.com