Adwords vs Adsense
I was recently asked what the difference is between Adwords and Adsense. It was only just a few years ago that I was asking this very same question myself.
Adwords
Google Adwords allows you to create an ad and have it displayed on relevant websites for your business. The purpose is to bring traffic to your website when someone of interest clicks on the ad. You can limit your ads to your budget, and only have to pay for running the ad when a person actually clicks on it.
When someone does a search using Google, the ads show up on the right hand side of the browser. You also have the option to have your ads displayed as text, video or images. Another benefit of using Google Adwords is that you can track and analyze your ads, how often they are displayed, how often someone clicks on them, and many other statistics.
Adsense
Google Adsense allows you to make money by placing Adwords on your website or blog. Each time someone clicks on the ad you make a little money. The goal of course is to get as many people to your website and clicking on these ads. Adsense does not cost any money to have them display on your website.
For both Adwords and Adsense policies are strictly enforced. So if you are to use any of the two, make sure you read their program policies so as not to get banned.


