How AdSense Works?

Advertisers pay Google and Yahoo to have their ads appear next to search results. Google's AdSense program gives advertisers additional reach, by putting their ads onto an estimated 200,000 additional Web sites.

The twist is that Google pays each Web publisher a commission, in exchange for running the ads. It's found money for many publishers, who say they make anywhere from $50 to $200 a month and beyond.

1) Advertisers buy search keywords.
2) A purchase of "cell phone" for instance, produces ads next to search results on Google's main page. The same purchase also produces AdSense ads for cell phones on many other sites, including Chris Pirillo's Lockergnome gadget and gizmo blog, when cell phones are mentioned.
Adsense Top Paying Keywords