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I know this has probably been asked before, but I need some current thoughts on the matter. I have a website running adsense and it currently pays me $.25 per click. I know for a fact that advertisers are paying over $1.00 on Adwords.
My question is whether or not my cut is the correct percentage that i should be receiving...25%?
My concern is that I have a few other websites and am concerned that maybe I am being limited by the less performing websites.
Your thoughts are appreciated.
You do not know for a fact. There is much that you do not know. You do not have the data to make any assumption at all about how much your percentage is. The issue here is you (and everyone else) are in the dark about actual percentages far more than you realize. I will explain why. ;)
1. The over $1.00 you cited is the highest bid, not necessarily what advertisers are actually paying. In fact, the bid on AdWords for Search can be as high as four dollars per click but the actual CPC can be as little as thirty cents.
2. You likely have an estimate for what the highest bid on AdWords for Search may be. You may not have an estimate for what bidding is for AdWords for Content.
3. On both sections (Search and Content) there are myriad factors affecting how much each CPC is. You absolutely can not know for a fact how much the advertisers are paying per click.
4. To make sure it's understood how in the dark publishers are, the fact is that publishers can not know who all the advertisers are that Google is cycling through their sites. Even much less know what they are paying, and even less to be able to guess what the cut is.
There have been statements leading to speculation that our percentage is somewhere around 70+%, but publishers can't really know.
[edited by: martinibuster at 9:35 pm (utc) on Aug. 30, 2008]
You should concentrate on increasing your traffic and stop wondering what your percentage of the cut is, it is irrelevant. What is concrete is the money entering you wallet and 4/$1 is quite average for a quality site in a good niche.
Oh Yeah, ditto what Martini said. It's a big guessing game for publishers, just the nature of the Beast.
[edited by: Khensu at 9:25 pm (utc) on Aug. 30, 2008]
Just to reply, I am most concerned about gaining more traffic and building a quality site. One concern I have is "smart price", since I have multiple sites and some are not converting well.
I do know for a fact that top advertisers, those wishing to be in the top three, are paying around $1.25. I use to have a Google Adwords account for this particular topic, and know the averages for this particular keyword. I also know that other factors play into placement and CPC is not the ultimate in placement, but averages do have to come into play here.
The reason I was asking was again over my concern of the "smart price" effect and also that I have read, as probably many have read, that Google pays out as much as 70% to publishers.
My theory is that many if I get rid of the advertising on my low performing sites until traffic increases, then I might see an increase in my better performing sites, i.e. from 25% to 50%. I am going to experiment with it and post my results. I know that Google reevaluates its "smart price" weekly, so we'll see what happens.