If you're just geatting started, there's a simple formula for you to understand how to earn money with google adsense:
Revenue = Traffic * CTR * CPC
You probably understand what traffic means.
So CTR is Click Through rate, and it means how many of your visitors are clicking ads. It actually depends on how your site is adsense-optimized.
CPC is Cost Per Click. Different words have different costs. Some can be about $0,01, some are over $10.
Source: http://earnviaadsense.blogspot.com/2006/09/adsense-formula-how-to-earn-money-with.html
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Great article to read. Its very useful for every blogger.Now they can easily earn money with google adsense.
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