Google Adsense works because of relevance. The ads that Google shows on a website is relevant to the website's content. This ensures that more clicks come from the website's audience. For example, you have a website or page about 'plasma television sets'. The ads that Google will place on your page would be about 'plasma television sets' or something that matches very closely. Of course, your visitor will be interested in these ads and click, earning you and your website a few pennies and sometimes up to a few dollars.
This is known as Google Adsense for content and Google will pay for each click. Google will also pay 'per-thousand-impressions' (CPM). This is particularly useful if your site has lots of visitors. It means that every thousand unique visits your site gets as long as it has Adsense ads on it you will get paid.
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