Understanding Google Adsense

Webmasters need only to insert a Google Generated Javascript into the webpage or website template.

Google's spider parses the Ad Serving website and serves ads that relate to the website's content.

The javascript calls the ad from Google and will ensure that ads are served each time a visitor goes to the webpage.

Ok. You haven't said anything important.

That's True, but lots of stuff is not explained.

Hope some Adsense experts will add more valuable information to this thread.

Google AdSense is a program run by Google that allows publishers in the Google Network of content sites to serve automatic text, image, video, or interactive media advertisements, that are targeted to site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis.

After you are approved with google Adsense, in the adsense panel create the add with the size that suit your website, insert a Google Generated Javascript into the webpage or website template.....After that need to work on ranking and bringing lots of quality traffic to make money, sometimes lots of visitors not means that you will make lots of money, people also need to click on those ads. Google is smarter by every year, so need to have great content and blend those ads real good into your page, using formatting and colors to trick people actually click on those ads.
There are lots of great and usefull information here on BWH about the adsense.

I own several SMF sites. All had Adsense ads until the numbers gradually diminished to only one. This is because I was constantly receiving policy violation emails from Google. I was placing code on the index page. Somehow an isolated page would have more than 3 ads displayed and Google freaked out. I began removing Adsense from the sites.
Last week, I added the new Google Generated Javascript to one site and it works rather well and keeps Google off of my back. Hooray!!!