scottb - 9:11 pm on Apr 14, 2011 (gmt 0)
TAC (Traffic acquisition costs) "includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $337 million in the first quarter of 2011."
The press release left out a few interesting growth numbers, including the one above. That number was up 27% versus 2010, which means that of the money Google paid out to its partners, a much larger portion is now going to "certain distribution partners" and less to smaller Web sites that can't help Google maintain its market share with Bing.
So .. premium partners get more money and non-premium partners get less money going forward.