Approved for Advertising

I have been approved by Google AdSense. I was very surprised, relieved and excited when I received the email.
I went to the set up page to look around and it gives me some interesting options. Before I go in to those, let me stop and talk about what AdSense is and my extremely limited knowledge of how it works. Have you ever wondered why for example, if you are visiting a website about hair care , you scroll down the page and you see something like Google Ads with ads about hair accessories, or hair businesses. Or, your reading about a news item about Michael Jackson and on the same page it says Google Ads with links to mortuaries in your town, and grief counselors. The reason these types of content-related ads pop up is because the website you are visiting has agreed to let Google put up relevant ads on their website. Advertisers pay Google each time someone either clicks on the ad, or buys something from the ad, or visits the ads website and signs up for something depending on what package the advertiser purchases. Google, in turn gives a portion of that money back to the website owner who signs up for and displays the ads. So, if I click on or buy something from the local grief counselor ad, then the news website gets compensated for my action. In my ignorant days, I could never quite figure out how the computer matched up ads with content so well. In a nutshell, that is how it works.
There are rules webmasters need to follow to stay in good standing with Google to earn the revenues and to keep up the accounts. Like not openly encouraging people to click on the ad links or being dishonest about it. These ads can appear in Blogs and on article selling websites, although I don't know much about that yet. The whole system is quite clever because advertisers ads appear on multiple websites with related content, and website owners get compensated for actions taken by displaying the ads. It is also free to the website owner so the webmaster has nothing to loose by putting them up and they can still sell other advertising or withdraw from the program at any time.
I will review the ad options in my next post.