Adsense is one of Google's advertising programs. Another one of Google's advertising programs is Adwords which is the source of the ads used for the Adsense program. Adwords users would pay money to run these ads so that they themselves can generate money by sending people to their websites.
Website owners known as publishers can sign up with Google Adsense free of cost and get to place these ads on their websites. When an ad is clicked on, Google will pay the publisher about half of what the Adwords advertiser is paying to run the ad. Google gets the other half.
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