What I understood "AdSense is a money making advertisements program run by Google. Webmasters, bloggers and other web savvy can register in this program to enable text, image, banner, and video ads on their web pages. All these properly administered by Google team and can generate revenue on either a per-click (CPC) or per-impression (CPM) basis, soon coming up with cost-per-action (CPA)based service.
History
AdSense technology was derived originally from WordNet, Simpli (a company started by the founder of Wordnet, George A. Miller), and a number of professors and graduate students from Brown University. A variation of this technology utilizing WordNet was developed by Oingo, a small search engine company based in Santa Monica founded in 1998 by Gilad Elbaz and Adam Weissman.Later on Oingo changed its name to Applied Semantics in 2001, which was later acquired by Google in April 2003 for US$102 million. This was how the adsense, make money online was originated. Many webmaster are making $$$ by adsense worlwide. Why not u??
Type of Adsense Setup
How Adsense Program Works?
# The webmaster inserts the AdSense JavaScript code with unique publisher ID into a webpage.
# Each time this page is visited, the JavaScript code creates an IFrame with a src attribute set to the page's URL.
# For contextual advertisements, Google's servers use a cache of the page to determine a set of high-value keywords. If keywords have been cached already, advertisements are served for those keywords based on the AdWords (Will talk about this in other label post).
# For site-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements, and pays based on cost per impression (CPM), or the price advertisers choose to pay for every thousand advertisements displayed.
# For referrals, Google adds money to the advertiser's account when visitors either download the referred software or subscribe to the referred service. The referral program will be retired in August 2008.(check in the above adsense setup image)
# Search advertisements are added to the list of results after the visitor performs a search.
# Because the JavaScript is sent to the Web browser when the page is requested, it is possible for other website owners to copy the JavaScript code into their own webpages. To protect against this type of fraud, AdSense customers can specify the pages on which advertisements should be shown. AdSense then ignores clicks from pages other than those specified. Source
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