AdSense is one of the most convenient ways to make additional money from your website.
All you do is copy some code into your site to display the ads, and you earn every time someone clicks. You may also earn from impressions in some cases.
All this is derived from a program they call AdWords (pay per click marketing).
You often see these ads displayed above the free/organic results and along the right side of the page on Google.com.
These are called Sponsored Results, and the advertisers are paying a certain amount of money per click for these ads.
AdSense is your revenue share from AdWords ads. When someone clicks, you earn roughly 68% of the click and Google gets the rest.
AdSense is an auction-based system that allows advertisers to compete for those spots. Whomever has the highest bid and most "quality" ad, gets the top spot and so forth.
Its a great program that can help drive additional income to your website, and its really best for websites that are mainly content driven.
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