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What is my cut?

What percentage of a $1 AdWord buy do I get?

         

monkeythumpa

8:22 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



As an content website running AdSense I want to know what my percentage of the ad revenue clicked on my site is going to me and how much to Google. Anybody have a guess? We have the opportunity to run banners instead and get a 50/50 cut. I am guessing it is a better percentage but the ads may be more general.

Do other people find Google's practice of not telling you the percentage shady?

creepychris

8:29 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



Yes and No. Sure I want to know. And non disclosure of percentages means that they can change it at their will BUT it's easy enough to compare. Just run some test Adsense campaigns and if the EPM of Adsense is less than the banner campaigns then emphasize the banner campaigns, but if they EPM of Adsense campaigns is higher then emphasize those. At the end of the day, the company that gives me the most bucks for my thousand impressions gets my advertising space . . .and that for the moment is Google.

loanuniverse

8:32 pm on Aug 12, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Anybody have a guess?
2% to 65% depending on factors X, Y and Z

We have the opportunity to run banners instead and get a 50/50 cut.
The basis for making a decision is if you can make more money and that will only be found by trial and error. After all, 50% of a smaller pool could easily be less money than 10% of a bigger pool.

Do other people find Google's practice of not telling you the percentage shady?
Not really, why would you? Not transparent, but as long as the relationship works for you, you should approach this as just business. It is all about maximizing the revenue for the ad space.

valeyard

8:54 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



Do other people find Google's practice of not telling you the percentage shady?

Not really, why would you? Not transparent, but as long as the relationship works for you, you should approach this as just business. It is all about maximizing the revenue for the ad space.

I'd be prepared to take a cut in earnings in exchange for more openness, since that would equate to a higher degree of trust and more confidence in the future.

Approaching it as business, how many people would be prepared to enter into a business relationship where the other "partner" not only a) makes the rules and b) can change the rules at any time but also c) doesn't even tell you what the rules are!

I put up with AdSense's lack of transparency simply because the scheme pays so much better than anything else. If a competitor to Adsense existed that I thought would offer me a little less money but far greater transparency then I'd seriously consider switching.

loanuniverse

9:00 pm on Aug 12, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Approaching it as business, how many people would be prepared to enter into a business relationship where the other "partner" not only a) makes the rules and b) can change the rules at any time but also c) doesn't even tell you how the rules are enforced

Well, there is you, there is me and a few thousand other publishers.

P.S: I edited c) because I disagreed with it, but you are 100% right on a) and b)

monkeythumpa

9:27 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



That is the thing, I want to run the numbers before going through trial and error and Google's lack of reporting doesn't let me even compare it to our other choice. Our Google check last month cracked double digits and now a 10% difference adds up to a thousand bones. That is why I would like to forecast it. The loss or gain in revenue could be significant. I guess a split test is my only recourse, with a tentative deal that we can terminate Google's compeditor at a later date on performance.

Lipik

9:39 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



Even if we should now the percentage, and let's say it is 50%, than the question is : 50% of what? ...we don't now how much a click is worth...

Never_again

9:43 pm on Aug 12, 2004 (gmt 0)

10+ Year Member



I'd be prepared to take a cut in earnings in exchange for more openness...

Not me. Little more information is not worth any cut in earnings.

The revenue split has absolutely no bearing on my decision to use or not use Adsense. What matters is the bottomline amount I can earn with Adsense verses other programs -- and the revenue split doesn't provide me with one useful piece of information to determine this bottomline number.

alika

9:51 pm on Aug 12, 2004 (gmt 0)

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



I can get as much as 70% of the cut for an exclusive contract with a banner ad network. But that has absolutely no bearing on my decision. Even if I get only 30-40-or whatever cut from Adsense, my income from Adsense is 60x better than said banner ad network.

It's a no-brainer: I'll rather stick with Adsense even if I do not know how much I get for every click if I can still get soooooo much more compared to other revenue sources with a higher percentage cut. As said above, it's the bottomline that matters; not percentage cut.

europeforvisitors

10:17 pm on Aug 12, 2004 (gmt 0)



Do other people find Google's practice of not telling you the percentage shady?

No, because Google markets the network with phrases like "Discover your site's full revenue potential," "Earn more money from your content pages," and "Make money when visitors click on ads associated with your site." Google then provides you with detailed financial data (effective CPM and revenues) to help you determine whether it's fulfilling those promises.

The obsession with percentages that we often see on this board says more about Webmaster World members and their preconceptions than it does about Google. Many of the WW members using AdSense come from e-commerce or affiliate backgrounds, which means they're used to thinking in terms of "my customers" and "my commissions" instead of "my revenues from ad space."

Mind you, I'd love to know what Google's payout formula is, just because I'm curious. But Google is under no obligation to share that information with me, because AdSense advertisers aren't my advertisers: They're Google's. Advertisers aren't paying me for space on my pages; Google is.

spharalsia

5:10 am on Aug 13, 2004 (gmt 0)

10+ Year Member



Speculating here...wouldn't it be relatively easy to find out by running a simple test? Start an AdWords campaign around a super-unique keyword (one that only you would buy), design a test page around that keyword to call up the test ad on a unique Adsense channel, click on it, and compare what you paid for it to the revenue you receive from Adsense. OK, not relatively easy--but possible?

monkeythumpa

4:02 pm on Aug 13, 2004 (gmt 0)

10+ Year Member



I can see an average of what bidders are paying but we have thousands of content pages with different words that all get rolled up into one check. All of them have to do with some aspect of "business" but that is a wide range of words! I am guessing the cut is different for each word and even with a semester of differential equations this has just too many variables for me to work out. I would have to turn off all the Google scripts except for one content page and track that for a day. That is just not feasable.

Their lack of reporting is making me look bad to my boss, who wants to go with the other media supplier, since it is trackable. But I can't tell him whether it is a good idea or not.

Rodney

4:32 pm on Aug 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Their lack of reporting is making me look bad to my boss

What lack of reporting are you referring to?

If you run an A/B test with Adsense in the same spot for 2 weeks and the other banner company for 2 weeeks, compare the 2 earnings (Adsense gives you the earnings stats, CPM stats, etc).

That should be enough for your boss to clearly see which is the better option.

Most bosses care about the bottom line, and ig google can increase his earnings, and deliver a higher CPM, why wouldn't he go for it?