With more and more businesses going online, advertisers were in need of some effective service which could help them reach out to the potential customers. Google Advertising provides them the same. Google advertising gives an opportunity for the advertisers to reach out to the wider audience without having to worry about their demographic location.

Google governs a large number of websites and makes enormous revenue through its advertising tools. Almost 75-80% of the total revenue earned by Google can be attributed to its websites or its Network sites.  Even digital and mobile ad revenue has seen a drastic surge in recent past.

Google Adwords and Google Adsense are the two most widely used services. Both of them vary in their characteristics and services they offer.

Adwords: It’s an online service used by advertisers to reach out to potential customers by promoting their brand. The process begins by advertisers choosing relevant keywords for which they want their ads to show up and bid for these keywords. Google holds an auction for most relevant keywords where advertisers place bids.

To determine the sequence of ads to be shown, Google considers two factors for deciding the ad rank. Max bid placed by the advertiser and Quality score of the ad. Quality score is calculated by determining the relevance of ad, the content of landing page and how useful your ad can be for users.

An ad with the highest rank is placed on the top.

AdSense:  It’s for publishers to place Google Adwords ads on their website through which they can earn good amount of money. Google displays AdWords ads on the website which match the content of the website. The process begins with publishers providing ad spaces on their website to display ads. Website owners put ad code on their website where they want ads to be placed. As advertisers bid for the ads, the ad with the highest bid shows up on the screen. Each time the ad is clicked, advertisers pay Google, a share of which is given to the publisher as well.

S.No. AdWords AdSense
1. AdWords lets the advertisers show their ads on a search result and network of partner sites. Advertisers bid for relevant keywords for which they want their ad to show up when the user enters a search query with that keyword. AdSense is used by the publishers or website owners. They place AdSense code on their website through which the AdSense crawler finds their website and place AdWords ads matching relevant keywords on the website content.
2. AdWords is primarily utilized by the advertisers in reaching out to the larger audience and promoting their brand/business. AdSense lets the website/blog owners monetize their website. They can earn money placing google AdSense ads.
3. Advertisers only have to pay to Google when someone clicks on their ad. Google pays publisher a certain share of it gets from the advertiser when an ad gets clicked on publisher’s website.
4. Advertisers choose the amount they are willing to pay per click. Google has a fixed share which they pay to the publisher per click.