wow been running adwords for the past couple of days on 5 new sites.. also have adsense on each site same keywords on sites are being used in adwords what a diff.. shhhhhhhhhheeeeeesh.. no wonder G is so damn rich LOL I mean for like 49 clicks on my ad running on adwords lets say I get billed 12.16 but then track that clicks to my site and then thru adsense I get lets say .03 on average per click in I know G does not and will not discuss there payouts but durn... give us alittle more LOL
It looks like you have a bad niche for Adsense. 0.03 is lame. There are great niches for Adwords/Adsense. I love it when I see a recommended bid in Adwords of $50 per click. I just bid on hundreds of keywords for a nickel or a dime ($0.05 or 0.10) and most of them have little competition. You might try bidding on more keywords at lower rates. The first thing you need to do is get a better niche or or incorporate some better keywords in your site text to draw better Adsense ads.
AdWords is the program the advertisers use to create and place ads with Google, AdSense is the program that website owners use to rent space on their pages to Google for it to display those ads. Your questions are pretty basic, so see my article Using AdSense for Content to Rent Ad Space to Google.
If your site is targeted with 'smart pricing' keywords mean nothing. I have major keywords for satellite systems, precious metals and gemstones, diamonds, ruby jewelry, software, medical keywords, everything from acne to zits, let me tell ya, some of them as far as Adwords have bids according to the overture tool of $25.00 - on my websites with AdSense, the same ads, words, etc bring me 5 cents, 3 cents, maybe 20 cents if I am very lucky. Keywords mean absolutely nothing if you are hit by smart pricing, have a very low eCPM, etc........