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  What’s the difference between Adwords and Adsense? Well, in actuality, Google’s Adsense and Adwords are two sides of the same coin. They are both part of the advertising services that Google provides.

In Adsense, publishers (website owners and bloggers) are able to display relevant ads based on the content of their sites. Every time a visitor clicks on an ad, or views a display ad, the publisher earns a commission. The Adsense program uses a simple form of JavaScript to sift through the contents of a website or a blog in order to display the most relevant ads related to that content. This works because the more relevant the ads are to the content, the greater the odds are that a visitor will click on the ad, resulting in income for the publisher.

In Adwords, advertisers create ads that appear along side the search results on Google based on chosen keywords and keyword phrases, and also on Google’s content network. Advertisers choose how much they want to pay every time one of their ads is clicked and whether or not they want their ads displayed along side Google’s search results, on Google’s content network, or both.  

The content network is where Adsense and Adwords meet since the content network is made up of Adsense publishers. Adsense publishers work to increase their earnings by finely tuning their websites and blogs to feature the most relevant content in their niche. They also work to optimize the appearance and placement of the Adsense ads to increase the chances that they will be clicked. Adwords advertisers benefit because highly relevant content delivers targeted visitors who are already interested in the products and services advertised when their ads are clicked.

Since publishers make money every time a visitor to their site clicks one of their Adsense ads, publishers want to do everything they can to increase this probability, and in some cases, the more unscrupulous among them will do some unethical things like clicking on their own Adsense ads or paying people to click on them. On the flip-side, Adwords competitors will click on each other’s ads in an effort to drive up the others’ advertising costs without increasing sales. The name for this type of abuse is "click fraud" and Google has systems to guard against it. However, no system is foolproof.

In conclusion, the difference between Adwords and Adsense is that in the former, you are paying Google to advertise, and in the latter you are being paid by Google to publish Adwords advertisements. Adwords and Adsense together comprise Google’s advertising services.