Google 4Q Profits Increase Sevenfold

Thanks to all of us AdSense Webmasters:)

[alex7]

Yet another piece of good news for Google:

[biz.yahoo.com...]

Well done to all of us AdSense publishers then:)

[walkman]

"Revenue for the period totaled $1.03 billion, more than doubling from $512.2 million in the prior year. After subtracting commissions paid to other Web sites in its advertising network, Google's fourth-quarter revenue worked out to $653.5 million"

so google pays 35% to webmasters. Am I missing something? Their non-adwords revenue is symbolic.

Great quarter for G by the way. They better keep surprising though...

[Powdork]

so google pays 35% to webmasters.

That shouldn't be confused with a 35% payout to publishers. The revenue figures include adwords clicks on Google search pages among many other things.

[tomkee]

"so google pays 35% to webmasters. Am I missing something? "

My reading is that google pays out about $350 million of $500 million (adsense only) to publishers. So its more like 70%.

[BriGuy20]

Don't forget that the above number may include the numbers for syndicated search partners (AOL, Ask Jeeves, etc.), which (in all likelihood) have better deals than AdSense publishers. My recollection was that some of the deals split revenue 50/50, so likely the payout to individual AdSense people is lower.

I haven't dug that deep into financials, though, so I may be wrong.

[johnwhitesmith]

Wow i wonder how much of that was from clickbot activity..200-400 million? Bfft

[alvin123]

The Google Network - Revenues generated on Google’s partner sites, through AdSense programs, contributed $490 million, or 48% of total revenues.

Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $378 million or 77% of Google Network revenues. This compares to total payments to partners of $216 million in the fourth quarter of 2003, or 85% of Google Network revenues.

So, they paid "partner sites" 85% of total Network revenues last quarter, and 77% of total Network revenues this quarter, a decrease of 8% to adsense partners. Am I reading this right?

[Powdork]

There were cases in the past where some of the premium partners were being paid up to ( and maybe be even more) 100% of the click revenues. That was said to lower the average payout to us regular publishers to around 60%. My guess is that this practice has diminished and that represents a large part of the change in total payout percentage between the last two quarters.

[alvin123]

My mistake, revenues to adsense partners decreased 8% from the 4th quarter of 2003, and only 2% from the last quarter.