Forum Moderators: martinibuster
Google AdSense is the program through which the Company distributes its advertisers’ text-based ads for display on the web sites of the Google Network members. The Company recognizes as revenues the fees charged advertisers net of the portion shared with its Google Network members under its AdSense program. The Company’s net revenues and cost of revenues would both have been $91.7 million and $504.0 million and $69.7 million and $262.6 million higher in 2002 and 2003, and in the three months ended March 31, 2003 and 2004, if these AdSense agreements had been accounted for on a gross basis. There were no AdSense agreements in 2001.
If i'm reading this right it tells you how much was paid to adsense members.
2002 - $91.7 million
2003 - $504 million
1st Quarter 2003 - $69.7 million
1st Quarter 2004 - $262.6 million
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The good thing about working in finance is that I print these all the time so everyone will think I am working :)
Edit: I just want to add that if we are making that much money we should get some trinkets and towels ;) How come only the advertisers get trinkets? ASA!
S-1 printing as I write... If the numbers posted earlier are correct, I seriously underestimated Adsense {then again all of its partners might be considered part of adsense} Got to read....
1). If AdSense accounts for this much profit for Google, then look for Yahoo and MS to launch similar programs.
2). Publisher percentage share of income has repeatedly gone down, (according to stats in another thread). Future shareholders might get gready and demand that Google take a larger cut, leaving a smaller share, again, for publishers.
The funny thing is the growth rate exhibited by the "Adsense content" portion is incredible. If you assume that the big search engine sites that were considered part of Adsense back in the first Qtr. of 2003 have sustained only minimal growth of about 10%, that would put their share of Adsense revenue at about $100 million during the first three months of 2004.
This means that content is worth $244 million in gross revenues to Google. I just have to write this number down $244,000,000.00 for just three months. Geez, that is a lot of money....
Edit: corrected annual adsense revenue for 2003.
[edited by: loanuniverse at 12:06 am (utc) on April 30, 2004]
Interestinly if we annualize the first quarter figure, that's about 1.376B (Gross revenue, no netting) for 2004 assuming no growth over the first quarter figure.
2004 AdSense should eclipse regular Google SERP revenue. While not as juicy to Google, clearly AdSense is far more influential than regular searching.
Well .. it is juicy in the sense that it has more growth potential.
I am not going to ask for stock options, but at the very least I would like one of those pens that light up and say Google sent to me. :) I am glad to have contributed 0.000000000000000~000000001% of that revenue.
The funny thing is the growth rate exhibited by the "Adsense content" portion is incredible. If you assume that the big search engine sites that were considered part of Adsense back in the first Qtr. of 2003 have sustained only minimal growth of about 10%, that would put their share of Adsense revenue at about $100 million during the first three months of 2004.
So much for the claim (often seen on these forums) that advertisers are staying away from content ads in droves. :-)
I believe what we are seeing here is the formation of a new bubble, and how long will it take before there is a wave of "content site IPO's"?
Hmmm...can I buy boilerplate filing forms at the stationery store? :-)
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