While Google Adwords and Google Adsense both control online advertising, their functions are quite different. Google Adwords is used by the business owner who wants to advertise online. Google Adsense is used by the website owner who wants to earn money by allowing Google to place advertisements in online content.
Google Adwords allows a business owner to place advertisements on the internet. Business owners can choose to place ads in search results. When a user searches for one of the business’ specified keywords, the business advertisement may appear in the Sponsored Links section of the search results. Google Adwords can also allow a business to place advertisements in advertising sections on other websites. For all advertising with Google Adwords, the business owner only pays when a users clicks on the advertisement. The business owner can specify a daily budget for advertising.
Google Adsense allows a website owner to profit from advertising placed by Google in the website, RSS feeds, search results, mobile apps, or on unused domains.