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The super secret AdSense revenue share is finally revealed

New York Times spills the beans

         

Jenstar

8:07 am on Jan 16, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google has always kept the revenue share a heavily guarded secret - unless you were willing to read through all the SEC filings and figure out the calculations that way. But today's New York Times has got some pretty specific and detailed figures.

Google.com and the company's foreign search sites contribute more to Google's bottom line than AdSense, because for every dollar the company brings in through AdSense and other places that distribute its ads, it pays roughly 78.5 cents back to sites like Digital Point that display the ads.

So publishers are making 78.5 cents for every dollar an advertiser pays out. And this is in line with the figure I had always believed the revenue split to be.

The full article:
[nytimes.com...]

europeforvisitors

10:18 pm on Jan 16, 2006 (gmt 0)



I would be very surprised if small publishers received more than 50% and I believe that many of us are paid between 30 and 40 percent. The figure I see most often talked about is 70%, but I think the amount paid to large premium publishers is where most of that money goes.

I wonder if that's even mathematically possible, given the number of non-premium publishers in the AdSense network.

I don't believe the 78.5% figure, because I know what keywords in my niche generally go for, and I'm getting maybe 55-65%.

That doesn't mean a thing. With smart pricing, advretisers might be paying less than their nominal bids for clicks from your site. And even if you were getting 55-65% of Google's revenues from your site, that doesn't mean other publishers would be getting that percentage. Some publishers might be earning more and others less, depending on whatever factors (sliding scales, different percentages for different types of content, or whatever) that Google is using in its compensation formula.

How do we know they don't decide to give us 40% one day, and 70% the next?

You don't. You do know the numbers that really matter: Your effective CPM and your total revenues. Those are the only numbers you need to determine whether the "Ads by Google" box is worth having on your pages or whether you should replace it with something better.

I think they ought to let us know.

I think they'd be nuts to let publishers know the details of their compensation scheme, for two reasons:

1) Not everyone would be happy, and Google would hear even more whining and kvetching from publishers who were convinced that Google was unfair, unkind, or evil;

2) Competitors would find it that much easier to cherry-pick publishers from the AdSense network.

WisdomSeeker

11:08 pm on Jan 16, 2006 (gmt 0)

10+ Year Member



Sorry, but those figures don't add up for me. I've seen my adsense earnings deteriorate over the last few months and my site and traffic is highly targeted and genuine. I'll be glad when there's proper competition and I can get a proper cut of what I know advertisers are paying per click in some of the industries I work in.

WisdomSeeker

europeforvisitors

11:20 pm on Jan 16, 2006 (gmt 0)



Sorry, but those figures don't add up for me. I've seen my adsense earnings deteriorate...

And other publishers have seen their earnings increase. That doesn't prove anything about revenue payouts, either.

Visi

11:22 pm on Jan 16, 2006 (gmt 0)

10+ Year Member



Looks at Jen for stirring this up again...lol

Google has done a good job at PR but this is one of the better ones IMHO. They have so many other things buried in the latest cost of services number that is quoted that there is no way to calculate the percentage anymore. Adsense revenue is funding Google's expansion per the filings including admin costs and all those beta programs we all love so much.

ShunT

11:39 pm on Jan 16, 2006 (gmt 0)

10+ Year Member



Yea I wouldn't take this information more than I could spit it....

europeforvisitors

1:50 am on Jan 17, 2006 (gmt 0)



Yea I wouldn't take this information more than I could spit it....

I wouldn't put much stock in uneducated guesses by forum members, either--especially uneducated guesses that don't take smart pricing into account.

Nikke

2:06 am on Jan 17, 2006 (gmt 0)

10+ Year Member



First of all, I do agree that the figures sound a little bit high, I have been guessing on 66 percent.

Can't do it, Google will not let your Adword ad's appear under your publisher ID. One good reason, you don't want to pay for a click from your web site ... to your web site. ;)

I have seen my own AdWords ads on my sites. I keep forgetting to add them to my url filter :-)
However. These are all affiliate links, and they don't have my urls in them. I can still track the price though.

unreviewed

2:27 am on Jan 17, 2006 (gmt 0)

10+ Year Member



EFV, a billion here, a billion there, pretty soon it adds up to real money. Pay out a billion in your own personal affiliate program and I think you’ll have plenty of web sites in a very short period. Many of your affiliates will make only a few hundred a month, and be very happy to get it. Even at a thousand bucks a head, you would have a million happy affiliates. I’m not complaining about the payout, I’m just recognizing the pyramid payment structure.

guru5571

10:33 am on Jan 17, 2006 (gmt 0)

10+ Year Member



I'm not complaining about the payout either, but no way are we all getting 78.5%. I'm sure there is a sliding scale as elaborate as smart pricing. I once worked sales for a major high street retailer and our sales commissions were determined by no fewer than 30 different factors. Half of which were completely out of the individual's control and based on our store and also our region. The byzantine pay structure was designed to keep as much money in corporate hands as possible and to keep us confused and chasing new performance goals as they constantly turned the dials on the scale.

I'm not saying Google is just like that, but they have no good reason to pay low producers the same as high producers and I think many of the low producers are happy to get a pay packet and won't complain about percentages.

I think another reason Google doesn't get into disclosing this kind of info is the same reason companies discourage employees from talking about pay. Everyone gets pissed when they find out that someone else is earning 20% more than them for doing the same job.

elsewhen

10:49 am on Jan 17, 2006 (gmt 0)

10+ Year Member



i thiink it makes perfect sense for google to pay big publishers a greater percentage than lower percentages... and i find the 78% figure for the network-average to be very believeable.

in simple terms it is bulk pricing.

a large publisher brings much more revenue to the table for google; why shouldnt google share more in the attempt of retaining that publisher.

although it would be a mess with respect to taxes etc. - from one perspective behoove different webmasters from aggregating their sites together into one account to get improved payouts.

europeforvisitors

3:53 pm on Jan 17, 2006 (gmt 0)



I don't think there's anyone here who believes all publishers are getting 78.5%. As I've mentioned before, I wouldn't be surprised if the compensation algorithm were even more complicated than a sliding scale based on revenues. Why should Google's compensation formula be any simpler than, say, a book contract from a major publisher, with its sliding royalty scales and different rates for earnings from different sources?

guru5571

9:33 pm on Jan 17, 2006 (gmt 0)

10+ Year Member



Couldn't agree more EFV.
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