Forum Moderators: martinibuster
I am wondering if Adsense is earning that much money from advertisers ... that much its distributing to publishers like me..
Comments are welcome.
Thank You.
I'd said they earning loads from their advertisers, and many seem happy [webmasterworld.com]
The only question is if G's cut is sufficient to cover the additional overhead created by the Adsense program, and if they continue to have enough advertising to serve the search results and Adsense.
Even if Google were to cut the percentage paid to hosts (I'm not suggesting that they will!) then many hosts may stick with it as it may be their only source of income from the site.
In any case, the idea that Google has some kind of fixed revenue split (a la traditional networks that pay 50-50 or 60-40) may be a false assumption. It's just as likely--indeed, far more likely--that the revenue split is determined by a formula that takes several (or more) factors into acount. For example, Google might very easily choose to pay ad royalties on a sliding scale, since there's more profit after administrative overhead on higher-volume accounts. It makes a lot of sense for Google to use a formula that's more complicated than a simple split, since--among other things--such a formula makes it harder for competitors to learn what Google is paying and to offer a better split to successful publishers in high-profit categories.
Do they have a minimum for being in the program (other than the $100 min per check)?
The sliding scale model sounds right to me and makes sense.
I suppose the real test of how much money the program makes is whether or not other companies start competing with Google. I understand that there are a couple of competitors to Google in this market. If a company decided to take on Google in this area, it would suggest that there's money to be made. Although saying that, companies often fight for market share in one area in order to boost or provide more credibility to another area of their business. Com[petition would be healthy - especially for small independent publishers who are now completely reliant on the revenue from adsense.
IMHP AS serves advertisers of the AW program nicely by multiplying G's potential for many specialty areas.
Jens
google takes advance from advertisers but they pay us after a lot time like 40 days. whats their money doing in those 40 days.
google takes advance from advertisers but they pay us after a lot time like 40 days. whats their money doing in those 40 days.
Google pays faster than most companies do. I think most publishers who have experience in working with large corporations (or with affiliate programs) will tell you that.
I've always seen the adsense program as a lifeline to small, independent publishers who earn a few dollars a month to cover their hosting costs and so I assumed this was the main focus of the program.
I think the main focus of AdSense is to make money for Google. :-) As for why Google opened the doors to publishers of every size I think that was done to achieve ubiquity or omnipresence, a la Amazon.com, not for altruistic reasons. By achieving a dominant market share in contextual text advertising, Google has made it harder for future competitors to gain a foothold.
Sites with high volumes of ads have (I presume) better access to other advertising options.
Yes, but those other advertising options seldom pay as well as AdSense does. That's why you see AdWords/AdSense ads on large corporate-owned sites like THE WASHINGTON POST and About.com.
I suppose the real test of how much money the program makes is whether or not other companies start competing with Google....Competition would be healthy - especially for small independent publishers who are now completely reliant on the revenue from adsense.
It remains to be seen if Google's competitors will reach as far down the scale (in terms of traffic and potential revenue) as AdSense does. Given the fact that Google already has a dominant market share and larger financial resources than most of its competitors do, I'd expect competitors to "cherry pick" the more profitable sites and traffic--either by having high traffic minimums (a la Overture's Content Match network) or by emulating targeted banner-ad networks like Tribal Fusion and going after established sites in profitable niches.
That's what Google tries to accomplish when someone clicks at the Adsense link called Ads by Google...
Jens
If we used AOL as benchmark, do you think the sum of all revenue Google earns from AdSense publishers is 1/10th of AOL, 1/4th of AOL, 1/2th of AOL, equal to AOL, twice AOL, etc.?
I don't know the answer to that question, but I am pretty sure that as a group AdSense publsihers are a bigger pain in the butt.
Granted Adwords and Overture's bidding system work very differently, but a publisher is more likely to earn $.60 per click on terms that being bid on at Overture in the $1.00 range than if the bids are $.10.
It depends a lot on the quality and quantity of traffic, as well as the topic.
I handle a client's Adsense account as well as my own and the CTR for the one site he runs adsense is almost 8 times the CTR of my account which is showing on 12 sites or so, but I am getting about 800 times the number of impressions he is. And my CTR is actually respectable (compared to CJ's, for instance.)
If we used AOL as benchmark, do you think the sum of all revenue Google earns from AdSense publishers is 1/10th of AOL, 1/4th of AOL, 1/2th of AOL, equal to AOL, twice AOL, etc.?
...I am pretty sure that as a group AdSense publsihers are a bigger pain in the butt.
I'd guess that the big corporate partners are more demanding, but there are obviously fewer of them, so maybe it all evens out. :-) Certainly it's easier for Google to simply dump an annoying mom-and-pop publisher than a demanding corporate partner that's racking up 20,000,000+ impressions per day.
I suspect that Google is learning what affiliate managers already know: that 20% of the publishers generate 80% of the revenues and snother 20% generate 80% of the unnecessary e-mails. :-) The "pester-to-profit ratio" may be a factor when Google decides whether a publisher should be removed for invalid clicks, violating the program policies in a minor way, etc. If the costs of servicing an account are higher than the profits generated by the account, that may tip the scales against the publisher.
