Google AdWords and AdSense Explained:

It can be confusing for beginners to grasp the difference between Google AdWords and Google AdSense. They are, in fact, two separate programs, though they work in tandem to deliver results for all parties involved.

Google AdWords is the program that allows advertisers to promote their websites using ads. These advertisements most often appear on Google’s search results page (usually in the right-hand column). They can also be displayed on Google’s partner sites (like other search engines) or on publishers’/webmasters' websites.

As an advertiser, you only pay Google for the ads that appear on their site and their partners’ sites. You do not pay for your ad appearing on other publishers’ sites. In this instance, you pay per click (PPC).

Google AdSense refers to the program where publishers sign up to run advertisers' ads on their websites. The publishers are then paid by Google for each user they direct to those ads.

In summary, the advertiser PAYS Google to run their ad with Google AdWords. Google PAYS the publisher for results generated from AdSense ads.

The connection between the two programs is that the ads advertisers pay to run on Google AdWords are the SAME ads that publishers run on their websites. This is where most people get confused. Google AdSense wouldn’t function without Google AdWords.

Publishers/webmasters are often referred to as Google's "content network." When a publisher/webmaster signs up to run Google AdSense, they are matched up to your ad based on the content of their website.

Be aware that many places on the web (like forums and blogs) confuse readers by referring to AdWords and AdSense interchangeably. Remember that they are two separate programs, though they work together to generate income for Google, the advertiser, and the publisher/webmaster.

If you are still finding it difficult to understand the difference, you can find more information on the two programs by visiting Google’s AdWords or AdSense website. Many people find their explanations confusing, which is why this article was created.

Enjoy making money with your AdWords and AdSense advertising programs!