Forum Moderators: martinibuster
I saw this twice in the past on another websites.
Does Adsense cheat?
Does anyone saw that too?
There is no way that google is taking pennies away from one site to give to others. Where the heck idi you come up with that?
That wasn't meant to be literal. It was just a way to visualize why the argument of "why don't we see a drop across the board" or "if Google is reducing payments then why do some say they are getting more" arguments shouldn't really be used because any sliding scale payment wouldn't apply to everyone the exact same way.
While Google *might* be taking a larger percentage of some clicks, you suggest that there was "evidence", which was false.
Along with a lot of other folks who believe there is a sliding scale which true or false still makes perfect sense to me for Google to do. Perhaps you are right though. The drop in TAC from 39% to 31% (which is about a 20% decrease) can be explained as an accounting error or a 100% payout deal or something? Surely it cannot be from something as sinister (read as smart business) as a sliding scale payout.
The vast majority of people seeing lower payouts are explained by things mentioned early in this thread.
And the other small minority is explained how? Please educate me.
To suggest that google is taking some away from some sites, giving it to other, and pocketing a few pennies in the bargain is just garbage.
Right. Garbage. Glad you pointed that out. For a minute there I thought businesses sometimes charged different prices to customers for the same service or product and paid partners and/or suppliers different rates and I thought some might even pay a bonus to higher performers and maybe get a lower rate from under performers. Stupid me. That never happens. I should have realized margins are equal and set in stone for everyone.
I guess I need to call some folks and demand I payer higher prices for deals I've negotiated as surely it is just wrong or as you say, garbage, for others to pay higher prices to cover the margins of businesses I've cut into.
Oh wait...stupid me again...since it's garbage then no doubt those businesses have already called the folks who paid full retail and gave them the same discount they gave me. They wouldn't want to be taking more money from them to give to me in the form of lower rates. That might just increase their profit margins if more people paid retail then a discounted rate and we can't have that garbage happening now can we?
JAG
The drop in TAC from 39% to 31% (which is about a 20% decrease)
It would be more accurate to say that, since AdSense started, TAC has gone up from 21% to 31%, which represents a 47.6% increase over the baseline. And over the last three quarters, TAC has been a relatively stable 32%, 32%, and 31%.
Still, if you're going to use Traffic Acquisition Cost as evidence that Google is sucking up a bigger share--and as a possible (if mathematically unlikely) reason for the precipitous drops in revenue that the OP and some other members have complained about--then you should wait until the end of January to make a judgment, since that's when the latest quarterly numbers will be released.
It would be more accurate to say that, since AdSense started, TAC has gone up from 21% to 31%, which represents a 47.6% increase over the baseline. And over the last three quarters, TAC has been a relatively stable 32%, 32%, and 31%.
You really need to stop looking at *just* the numbers on that IR page and look at the 10Q. And I don't say that to be the stubborn a** I know I can be. There's a lot of good reading that creates a bigger picture including how they have lost revenue, not a wash but a loss, with certain AdSense publishers yet their GM remains about the same. While it is still possible to make an overall profit with some losses the GM has to shrink unless an equal or higher increase is made somewhere else to cover the loss.
It's absolutely dead wrong to say it's more accurate to look at the numbers when they first started. Of course the TAC at the start of AdSense would be small as they ramp up the product to compete and take $ from their search product which has very little acquisition costs. Without AdSense their TAC would probably be less than 10% but of course a few billion in revenue would not have made it onto the books :-)
I'm just looking at the recent trends of the Google Network after it has matured a bit but still using data that has covered the majority of its reported lifespan.
Maybe I am crazy and maybe they keep the GM the same by charging the $10.00 for clicks that used to be $0.05 as per the AdWords threads here. That'll cover some heavy losses from the AdSense side of the house. I still think that they are not cheating with AdSense but they do keep their numbers even somehow.
JAG
