Forum Moderators: martinibuster
[investor.google.com...]
"TAC – Traffic Acquisition Costs or the portion of revenue shared with Google’s partners increased to $302.9 million or 79 percent of Google Network revenue. This compares to total payments to partners of $143.5 million in the third quarter of 2003, or 82 percent of Google Network revenue."
Even though Google's revenue and earnings from their growing AdSense network has skyrocked, they are actually keeping 3% more of the margin as compared to last year. I would guess that this is due to the increase in % of non-premium publishers who they only have to pay about 35 - 40% margin.
By the way, do non-premium publishers believe that they are still only getting about 35-40% of Google's margin? I only used that number b/c it has been used previously but I don't know if it is really accurate.
Here is a rough calculation I performed
I took 3 guesses:
1. The puerto guess: 80% revenue from the top publishes
2. The top publishes are all premium
3. Premiums get higher split than normal publishers.
Crunch, guess, whirl... ding!
Revenue split
Average across entire network 78.8%
Average revenue split for plebs: 55-65%
Premium: 75-85%
Also some others have mentioned seeing 3 cent clicks as the lowest, but the minimum AW bid is 5. This is 60%.
It's not even close to proof, just something to think about.
I've seen $0,01 clicks but I think I've seen $0,03 cent clicks on the advertiser site if I'm not mistaken (with $0,05 as minimum bid).
Their system is too complicated to just split it to say, "publishers get 60%, we take 40%" or whatever. If a standard publisher's site is converting well for Google, they pay more, if not, they pay bottom of the barrel, or it seems like.
In any case the split is more generous than I would have imagined, on the whole.
