What Is Google Adsense Vs Google Adwords?

 

What Is Adsense?

Google Adsense is an advertising program that website owners can use to make money from the ‘traffic’ on their website.

It allows approved partners to add adverts on their web properties – usually websites- using a small amount of HTML, which will in turn show Adsense advertisements.

Website owners must apply to be accepted by Adsense, and once they are and they begin using Adsense, they are regularly paid by the company in return for the Adsense ad clicks they generate.

Adsense uses massive amounts of data to ensure that adverts are relevant and targeted according to the content of the website, or the past actions of the individual viewing the page.

Adsense gains this data via a number of means, including spiders employed to crawl websites, and access to the massive amounts of data held by Google itself.

These custom-tailored adverts are what gives Adsense its ability to generate large amounts of revenue for website owners compared to other advertising options.

Indeed, Adsense is commonly regarded as the gold standard of website monetization, although other avenues such as Native Ads (like Taboola, Revcontent, or Dianomi) are becoming increasingly popular and increasingly competitive with Adsense.

Note: The Youtube partner program is also technically a part of Adsense, though the term ‘Adsense’ is generally used in relation to websites using the program.

 

What Is Google AdWords?

Adwords is basically the other side of Adsense, where businesses can pay money to run advertisements, including the type of Advertisements that will show up on the web properties of those using Google Adsense.

In this regard, AdWords is the Google advertising service for businesses that want to run advertisements to find new customers.

Businesses sign up and gain an Adwords account, where they can create campaigns and ads that their potential customers will see.

There are a myriad of ways to target advertisements on Adwords. This granularity is what makes it such an attractive option for advertisers, and as a result Adwords is known to be among the higher-priced advertising options available, but also among the most effective.

As of the time of this writing, Adwords includes as advertising options: Search Network, Display Network, Video (YouTube), Shopping, and Universal Apps.

 

Example image of Google ad
The Fred Meyer ad in the middle of this page is from the Google Display Network, which can be accessed through Google Adwords. The site hosting this ad is getting paid for doing so via Adsense.

 

 

Example Google Search ads
This is a screenshot of Google Search results for the phrase ‘Best Dayton Plumbers’. Businesses can run ads like these through Google Adwords. It is NOT an example of Adsense though since no third party is getting paid to host the ads.

 

Example Youtube ad
The ad circled in red on the right is appearing on Youtube. The Youtube Partner Program is technically a part of Adsense and allows Youtubers to make money from ads that people see while watching their videos. A business can run ads like these through Google Adwords, and it is therefore an example of both ‘Adsense’ and ‘Adwords’, much like the Fred Meyer ad above.

 

 

Conclusion: Adsense Vs Adwords

To summarize the above, Adsense and Adwords are the two sides of the same Google-owned Advertising Network.

‘Adsense’ refers to the part of the business where website owners can make money by hosting Google Adsense ads, and ‘Adwords’ refers to the buy-side part of the business where those seeking to advertise can pay to do so, as well as where they can advertise using Google Search, using Youtube ads, and other Adwords advertising options.

To break it down very simply, Adsense users get paid BY Google to host ads, and Adwords users pay Google TO run ads.

 

 

Examples Of How Each Might Be Used In An Online Business

Let’s say John has created a website all about his favorite country – Malaysia.

He writes blog posts detailing it’s history, current events within the country, and the best opportunities for travelers visiting Malaysia.

As a result, his website eventually gets lots of traffic from people who share his interest in Malaysia or are planning to travel there.

Desiring to make money from the website, John applies to be accepted to the Adsense program and is accepted.

He then places the Adsense code on his website, and Adsense ads begin showing on it.

As a result, he begins receiving regular payments from Google for the traffic he generates.

 

At the same time, another website owner named Shelly is a travel consultant who wants to grow her business.

To this end, she signs up for an Adwords advertising account.

Within it, she creates ad campaigns to find new customers.

Some of these are Google Search ads targeting people who search for terms on Google, such as “Best Island Travel Getaways”.

She also runs ads on Youtube to individuals watching videos about tropical travel destinations.

And she runs Google Display ads which Adwords shows on relevant websites, including John’s blog about Malaysia 🙂

 

That is a quick summary of the difference between Google Adsense and Google Adwords!