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What Percent Do You Think Google Pays Us Each Ad?

And does the percentage we get paid vary from ad to ad?

         

kb08807

1:48 am on Jun 14, 2004 (gmt 0)

10+ Year Member



What percentage do you think we make off of each clicked Adsense ad on our site? Like if Google charged an advertiser $1.00 for the ad click, how much does Google keep and how much does Google give to us?

And do you think it depends on the ad... like depends on what industry it is? (like health, or technology, or law, etc.)

Any educated guesses, anybody?

blaze

1:58 am on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Smart pricing says it is partially dictated by how well you convert.

You'll find some people on this forum disbelieve this, in truth no one really knows.

According to the SEC filings, on average Google is giving ~40% to AdSense partners. This probably means 80% go to partners like AOL and large content sites and 20-30% goes to the small fries.

ChrisKud5

4:43 am on Jun 14, 2004 (gmt 0)

10+ Year Member



I am not too sure about the "converting" thing yet.

As an adwords publisher, I am not asked how many of my adsense refeers "converted" for me.

blaze

4:54 am on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



This is a part of the debate. How many people put in the conversion code?

I do. I think a lot more people would if Google got wise and got rid of the foolish image requirement.

europeforvisitors

3:30 pm on Jun 14, 2004 (gmt 0)



What percentage do you think we make off of each clicked Adsense ad on our site?

Nobody knows, and Google isn't telling. And while the answer might be interesting, there's no good reason why Google should reveal that information.

AdSense isn't being marketed the way traditional ad networks were in the early days of banner ads. In those days, the ad networks' pitch was something like: "Instead of selling and serving ads, let us do it for you, and we'll split the revenues with you 50-50 [or 60-40, or whatever]." With AdSense, the pitch is different: "Unleash the full revenue potential of your website." It isn't being marketed as ad outsourcing (i.e., as a substitute for what publishers are already using); it's being marketed as a new or additional revenue stream. So, instead of obsessing over numbers that Google isn't likely to reveal, publishers should be focusing on the metrics that really matter: effective CPM (EPM) and bottom-line revenue. If AdSense EPM and revenues are worthwhile, great; if not, the publisher can drop AdSense or--even better--continue testing it on a random sample of pages to see whether EPM and revenues improve.

jomaxx

4:28 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I've seen estimates that range from Google paying 1/3 up to 2/3 of the click revenue. I've always used 50-50 as a rule of thumb, and I can't think of any decisions I've ever made that depended on that guess being accurate. It would be nice to know, but since there's also no way to know what an advertiser pays for any click, it's kind of academic.

sailorjwd

4:35 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



In regards to conversion rate:

There are thousands of adwords customers (like me) who provide consulting services. It isn't possible to know who calls me (after clicking on an ad) and eventually signs up for a consulting contract.

A significant proportion of Adsense ads on my site are also consulting-type companies therefore this whole conversion rate thing puzzles me.

Am I correct in assuming that conversion rates really only apply to sites that have shopping-cart like purchasing methods?

Never_again

4:55 pm on Jun 14, 2004 (gmt 0)

10+ Year Member



There are thousands of Adwords customers (like me) who provide consulting services. It isn't possible to know who calls me (after clicking on an ad) and eventually signs up for a consulting contract.

sailorjwd: I think you have “hit the nail on the head.” I’ve often wondered how Google could possibly use “conversion” as a criteria for increasing or decreasing EPC since not all Adword advertisers use the conversion code provided by Google and there are many (as you pointed out) who selling product that lends itself to conversion tracking.

europeforvisitors

5:04 pm on Jun 14, 2004 (gmt 0)



Am I correct in assuming that conversion rates really only apply to sites that have shopping-cart like purchasing methods?

AdWords lets advertisers define "conversions" in a variety of ways. As I recall, Google's definition of a conversion is "a sale or other business action," which can include such things as registration, a newsletter subscription, or simply visiting a designated number of pages on the advertiser's site.

So Google can track "conversions" for advertisers who don't have shopping carts. What it can't do is track conversions for advertisers who don't use that AdWords feature (as many don't).

topr8

5:06 pm on Jun 14, 2004 (gmt 0)

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



ok i'm guessing completely but i think it is all a euphemism for ...

proper decent content sites, with text content will get paid out more than the kind of sites we all know and see in the serps which are really just scrapings of search listings or some other computer generated pages with no real 'helpful' content.

but note what europeforvisitors says: at the end of the day so what about percentages, if it pays you better than other use of the space on the page then its in, if it pays less then its out.

jomaxx

5:20 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



No, a site with no "real" content, whatever you define that to be, could get paid even more. It depends on whatever on-page factors Google looks at during ad matching as well as (hypothetically) whether the traffic proves to convert better.

Since those sites tend to depend on free SE listings in the first place, the quality of targeted traffic could actually be quite high.

loansies

10:11 pm on Jun 14, 2004 (gmt 0)

10+ Year Member



I have been advised by the "BIG G" that the following dynamic factors dictate revenue:

a) type of ads being served
b) cost per click of those ads
c) conversion of users from your site
d) users' click through selection

In addition, Adsense does in fact reduce the price that an advertiser will pay, IF their data shows that a click from your page, is less likely to turn into a business result (like a sale, signup, subscription, etc.)

Recently, I've seen a 37% reduction in my site's revenue generation from Adsense. Everything within my control, specifically CTR and targeted traffic, have either increased or stayed the same.

What other ppc can be considered for us siteowners that are interested in shopping around, that pay equal to, if not better than Adsense?

Who is the competition?

blaze

10:17 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yeah, that post pretty much summarizes the situation.

If your topic is narrow and predictable enough, consider looking into affiliate advertising.

arubicus

11:01 pm on Jun 14, 2004 (gmt 0)

10+ Year Member



People are whining about competition. If you want it so bad create the competition.

jomaxx

11:02 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



c) conversion of users from your site

Can you be more specific about who at Google told you this and what the exact wording was? This has been widely speculated, but I don't recall any of Google's public statements acknowledging this as a factor.

d) users' click through selection

Not sure I understand this. Does this simply mean "which ad the user clicked on"?

As for competition, unless you are VERY big there really isn't anything that pays nearly as well - certainly nothing within 37% of what AdSense pays. Affiliate marketing can be as good as or better than AdSense, but as blaze says it depends on your site.

blaze

11:06 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




How smart pricing works
..
and if our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.

[adwords.google.com...]

jomaxx

11:17 pm on Jun 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I guess that is in reply to me. But the very next sentence seems to discount the idea that conversions are taken into account. Hence the ambiguity.

We are constantly analyzing data across our network, and if our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.

We take into account many factors such as what keywords or concepts triggered the ad, as well as the type of site on which the ad was served. For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.

loansies

11:26 pm on Jun 14, 2004 (gmt 0)

10+ Year Member



1. "Can you be more specific about who at Google told you this..."

Couldn't give you a specific name, nor would that be wise to post on forum. The information is genuine though.

2. "Not sure I understand this. Does this simply mean "which ad the user clicked on"?"...

I'm no expert, but your analysis is probably right.

3. Thanks for the tip on affiliate marketing. I do, in fact, have affiliate products sold on my site, and they do well, but that is complimentary alongside Adsense. I need the advertising revenue.

What about Ad-Sonar and CJ Evolution? They aren't up and running yet, but could they be the competition so needed against Adsense in the marketplace? Any others out there worth looking into?

nyet

1:34 am on Jun 15, 2004 (gmt 0)

10+ Year Member



blaze,
This probably means 80% go to partners like AOL and large content sites and 20-30% goes to the small fries.

based on..........?

fezziwig

1:37 am on Jun 15, 2004 (gmt 0)

10+ Year Member



25% or less to the average joe, for anything worth playing.

blaze

1:39 am on Jun 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



based on ............ speculation! The best kind of basis.

It would seem to make sense that someone has to get the good side of the deal and someone has to get the bad side.

nyet

12:20 pm on Jun 15, 2004 (gmt 0)

10+ Year Member



seems to me the numbers could just as likely be the other way around.

Google is the customer here buying ad space from AOL.

Usually in business when you make a large PURCHASE the customer receives a discount rather than paying a premium.

Besides, who cares what the split is?

adfree

1:09 pm on Jun 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



So, how about sites with lame content that position AS ads clever enough to offer their users an interesting exit?

Quality low, might have solid conversion, great CTR. Right?

In my view this could be quite encouraging to build template based, SERP copied pages to the boat load. Not quite sure if that could be G's intention...

blaze

4:00 pm on Jun 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



There is competition for AOL's business. There is no competition for small fry's business. I am pretty sure that Google isn't purchasing Ad space, either.. I believe they are paying as they go.