|What does Google pay YOU? |
IPO filing reveals some sites are paid more that 100 percent...
Now we know.
What a wonderful insight on my last day in the web biz--Google was paying some publishers for their listing.
(BTW, this jives with the experience I has with a contextual linking ASP I tried to market to news publishers. Overall clicks, with very high relevance, was only 2.2 percent of traffic on news articles.)
from Bambi Francisco's Net Sense column today
|...,Google revealed that 80 percent of the $961 million in sales it generated last year came from its site alone. The other 20 percent came from other Web sites that use Google's ads and send traffic Google's way. |
Google also said: "Typically, in situations where we pay a Google Network member more than the revenue we receive from our advertisers in connection with paid clicks on that Google Network member's web site, we recognize the difference as cost of revenues."
Google didn't disclose which of its distribution partners are getting
that "more than the revenue we receive" payment. But many analysts
speculated that some distribution partners were receiving 80 to 90
percent of the revenue generated from the traffic they sent to Google's
advertisers. Now we know it's more than 100 percent in some cases.
Conclusion: Even with Google's monster-huge volume of ad placement on other web sites via Adsense, it doesn't make them that much money. Adsense has mostly been a marketing campaign to build the Google brand.
If you're making money with Adsense, great. But, as you build around it keep in mind that the program is a small part of Google's enterprise. Of course, if you're depending on it, you're not alone.
Or, as Bambi says:
|Now that Google admits to giving away some revenue and says it generates 80 percent of the sales on its own site, it doesn't seem Google needs to improve the economics between itself and its partners. |
One has to wonder why some search engines, therefore, trade at a premium when they rely so heavily on a company like Google, which clearly has a lot of leverage.
I encourage you to read her entire column.