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What is Google's cut?

         

trand300

5:47 pm on Feb 13, 2006 (gmt 0)

10+ Year Member



Does anyone know what is Google's cut on the revenue that an advertiser pays? If an advertiser pays $1.00 for an Adsense word or phrase, how much does Google keep?

danimal

11:57 pm on Feb 24, 2006 (gmt 0)



>>>AdSense publishers = AdSense partner sites<<<

wrong... adsense partners do not get paid the same way as adsense publishers like us... as i have already proven in this thread, per a number of industry sources.

if we knew the overall figures for how the tac was spit between adsense publishers and adsense partners, there would be no need for me to come out here and correct that false 77% garbage that you and hunderdown have been posting all over this forum.

europeforvisitors

1:48 am on Feb 25, 2006 (gmt 0)



danimal, Google defines all AdSense publishers as "partners." (Just read the last quarterly earnings report.)

Maybe you're thinking of "premium partners," which are a subset of AdSense partners (a.k.a. publishers).

In any case, where do you get the idea that Google's "traffic acquisition costs" are split in some arbitrary way between "premium partners" and non-premium AdSense publishers? Do you seriously believe that Google takes the 600-odd million dollars paid to partners and divides it into two piles, with one pile going to premium partners who receive one set rate and the going to non-premium AdSense publishers who receive another set rate?

As for your suggestion that hunderdown and I have been misleading people, that shows a lot of chutzpah, coming as it does from someone who has repeatedly posted misinformation in this thread (most recently, the off-the-wall assertion a few messages back that AdSense publishers were paid out of Google's revenue share).

danimal

3:20 am on Feb 25, 2006 (gmt 0)



>>>In any case, where do you get the idea that Google's "traffic acquisition costs" are split in some arbitrary way between "premium partners" and non-premium AdSense publishers?<<<

this has all been covered multiple times:

"no, it's not... you are using tac numbers as your basis for computing that 78%, but tac numbers are not reliable, as i pointed out in the thread referenced above... i'll give it to you another way, from a conversation between john battelle and a google rep:

"Me: Well, one of the things that publishers wonder about AdSense is what is the split? How much of every dollar goes to us, and how much to you?

She: Well, we don't divulge that information, but if you look at our SEC filings, you can see our numbers...

Me: Yes, I know about your TAC, and it averages in the high seventies to low 80s, but that number is very difficult to understand - I know that you have set deals with sites like Ask and AOL, and those probably skew the overall TAC. I wonder if you are making up that high TAC by, well, dialing down the TAC with smaller publishers like Boing Boing. I mean, we have no idea if you are giving us high seventies, or taking 60 percent all for yourself!

She: We can't get into numbers, but we can say that we give the majority of the revenue to our publishers.

Me: Huh. That's the first time I've ever heard that - so more than fifty percent?

She: We can't give exact numbers out."

efv, you probably don't know who john battelle is, but you can rest assured that he knows a lot more about this industry than you do, o.k.?

"A lot of media companies, such as the New York Times feature Google ads prominently on their online sites. In some cases Google hands over as much as 100 per cent of the revenues to key partners. It does this to gain distribution and it is also able to grab the customer relationship through its "advertise on this site" feature."

>>>danimal, Google defines all AdSense publishers as "partners."<<<

partners? that is ignorant rubbish... how many partnerships have you ever seen where there are no contracts to be signed, and one party is subjected to a unknown, constantly fluctuating pay scale that they have no say in determining?

google has adsense partners that have signed contracts and established pay scales, and then google has adsense publishers like us, who have to suffer thru all of the above.

so don't try telling me that i'm a "partner" with google...

[edited by: martinibuster at 6:05 am (utc) on Feb. 28, 2006]
[edit reason] TOS #4 & 19 [/edit]

europeforvisitors

5:12 am on Feb 25, 2006 (gmt 0)



danimal, if you're convinced that AdSense is treating you so badly, why do you continue taking abuse? How much courage does it take to pull the AdSense code from your pages?

europeforvisitors

6:07 pm on Feb 25, 2006 (gmt 0)



I'm simply trying to correct the misinformation that you've posted repeatedly in this thread. I'd also point out that name-calling is the last refuge of those who can't win their arguments with logic.

Again:

1) The percentage of revenues paid to AdSense partners is clear from the numbers in Google's quarterly earnings report. That doesn't mean every publisher is getting 78.5%, and no one here has ever suggested that it does. What's important is that the percentage has been virtually constant from quarter to quarter, which means that statements like "Google is cutting the payout to satisfy investors" (which we often see in this forum) aren't supported by the evidence.

2) You seem to believe that Google is mistreating publishers who aren't premium partners. If you believe that, why don't you pull the AdSense code from your pages? That's easy to do; I've done it myself for sections of my site that haven't performed well with AdSense.

[edited by: martinibuster at 6:08 am (utc) on Feb. 28, 2006]
[edit reason] Spelling. [/edit]

incrediBILL

6:30 pm on Feb 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



EFV, agree with your post 100%.

It's real easy, if you don't like the program take a hike, but you know you won't as you're like the rest of us that tried everything else and the revenues were pale by comparison.

Just because EFV makes a good living with AdSense, and it's a huge chunk of my change as well, doesn't make either of us shills. It pays better than anything else including ad networks that claim 75% payouts or higher because of the quality and quantity of the available AdWords advertisers. It's a volume business so give me 3 clicks at 60% over one crappy click at 75% any day of the week.

Quoting that ridiculous Battelle article is just lame as the Google rep didn't know who he was, it was a farce, and I'm sure his main business generates enough traffic to justify being a Premium Partner where those numbers clearly are spelled out.

The problem is some of us know some things that we can only HINT about but those high numbers people keep tossing around can only be attributed to ad partners like AOL, ASK, etc. and your payout is closer to 60%.

'Nuff said.

jomaxx

6:44 pm on Feb 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It's hard to argue with that assessment (although I'm sure some will try), since you're possibly the only person I've heard of who has tried to determine that figure empirically. Still, there must be others who have tried clicking their own ads on their own site, and it would be nice to have a few more data points to work from.

DamonHD

7:25 pm on Feb 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hi danimal,

Those three statements of EFV's are entirely consistent.

Assuming that you are not deliberately trying to pick a fight, ie trolling, I assume that you understand that in most distributions of values some will be below the mean and some will be above, rather then them all being at the mean/average (other than at Lake Woebegone, where "all the children are above average").

So what is the inconsistency?

And please don't insult EFV: he is a long-time, patient, successful, information-supplying member here and does not HAVE to take the time to explain his reasoning in the face of abuse, but he's still trying to.

Rgds

Damon

europeforvisitors

7:45 pm on Feb 25, 2006 (gmt 0)



Danimal, if you aren't happy with a percentage that's rounded down (78.5%) or up (79%), then you're welcome to memorize the figure of .787234, which is what you get when you divide:

$629 million ("TAC - Traffic Acquisition Costs, the portion of revenues shared with Google's partners")

$799 million ("Google Network Revenues - Google's partner sites generated revenues, through AdSense programs")

If you don't believe that number, please argue with with Google's accountants, not with me, because they (not I) supplied those dollar figures and definitions in the 4Q 2005 Google earnings report.

And again, for the last time: No one here is suggesting that the typical publisher is receiving 78.7234% of revenues; that number is the overall percentage of AdSense revenues that's being shared with publishers according to Google via its most recent quarterly earnings report.

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