Google has two very well known business products that are known as AdSense and AdWords. For someone new to the internet marketing field they can be a little confusing to understand
The main difference is that AdWords is used by advertisers and AdSense is used by publishers.
AdWords lets people advertise on Google.com, the Google Search Network (including sites like AOL search and Ask.com), and the Google Display Network (content sites that are not search engines). Businesses use AdWords to drive targeted traffic to their website, in the hopes that some of this traffic converts to sales. Advertisers pay Google a certain amount per ad click.
Control : With AdWords, you are in complete control of your budget. You set the amount you want to pay on a daily basis and there is no minimum requirement for you to spend. You are able to control your daily budget, bids, and ad quality. Your daily budget should be set to an amount that you feel comfortable spending each day. You can edit your daily budget as often as you like. Bids are most commonly set up on a cost-per-click (CPC) basis.
AdSense lets publishers monetize their websites or blogs by earning money from relevant AdWords ads displayed next to their content. The publishers receive a small payment each time one of these ads is clicked on. If your site has enough readers, this can be a simple way to generate a revenue stream from your content.
Target : Target the ads. Banner ads placed on your site are related to, and targeted toward, the content on your site. For example, if your site is for a local pet store, then you may see ads for obedience training or local pet adoption locations. Targeting ads on your site ensures that your ads will receive the maximum amount of clicks possible.