A lot of people are confused about the difference between Google's AdWords and AdSense programs. And many times, I have seen web sit owners putting AdSense ads on their sites when it really makes no sense to do so. So, I wanted to give you a brief explanation of the differences between the programs and let you know when it does make sense to put AdSense on your site.

AdWords is a pay-per-click advertising program where you bid on keywords and write ads that appear on Google when people type in those keywords. When someone clicks on your ad, you pay Google however much you bid on the keyword.

AdWords can bring your site instant traffic. You've probably seen these ads on Google on the right-hand side of the screen under ?sponsored links? whenever you search for something.

The AdWords program is ingenious in the fact that it is one of the only forms of advertising that lets advertisers target people who are looking for the exact thing they carry. If done correctly, a smart Google AdWords campaign can bring highly targeted traffic to your web site.

AdSense is a program that lets Google put AdWord ads directly on your web site. What Google does is determine what your web site is all about and it places text and image ads that are relevant to your web site.

When someone clicks on the ad on your site, you make money.

When You Should Put AdSense On Your Site

As a rule of thumb, AdSense is a good idea if you have a content site (meaning you aren't selling anything). Many people have sites that are informative in nature. Google's AdSense program allows people with these kinds of sites to earn a little (or a lot depending on how popular the site is)of money from the site.

But putting them on your business site is a bad idea.

Here's why:

By putting AdSense ads on your site, you basically become a billboard for your competitors.

Imagine Home Depot putting up a large billboard in front of its store for Lowe's.

That's what a site owner is doing when they put AdSense ads on their site. You are putting up advertising for competitors in your field.

So, remember: if you have a content site, AdSense is a good way to earn a little extra money. But if you're selling something, forget AdSense?

?but by all means use AdWords.

It's a great way to get traffic to your site'in a hurry.