GeeWhizzler - 3:47 am on Feb 22, 2006 (gmt 0) Cost of Revenues. Traffic acquisition costs as a percentage of advertising revenues.... 34% That means, you are getting paid 34%.
10Q Filing September 2005
Cost of revenues consists primarily of traffic acquisition costs. Traffic acquisition costs consist of amounts ***** ultimately paid to Google Network members *****, as well as to partners who direct search queries to our web site. These amounts are primarily based on revenue share arrangements under which we pay these Google Network members and partners a portion of the fees we receive from our advertisers. In addition, certain AdSense agreements obligate us to make guaranteed minimum revenue share payments to Google Network members based on their achieving defined performance terms, such as number of search queries or advertisements displayed. We amortize guaranteed minimum revenue share prepayments (or accrete an amount payable to a Google Network member if the payment is due in arrears) based on the number of search queries or advertisements displayed on the Google Network memberís web site. In addition, concurrent with the commencement of a small number of AdSense and other agreements, we have purchased certain items from, or provided other consideration to, our Google Network members and partners. These amounts are amortized on a straight-line basis over the related term of the agreement.
Cost of Revenues.
Traffic acquisition costs as a percentage of advertising revenues.... 34%
That means, you are getting paid 34%.