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Google reveals Adsense revenue share

you gain 68% from adsense for content and 51% for adsense for search

     

alahamdan

2:25 pm on May 24, 2010 (gmt 0)

5+ Year Member



Hello

Finally Share revealed:

[adsense.blogspot.com...]

As you may already know, AdSense is comprised of several products. The most popular are AdSense for content, which allows publishers to generate revenue from ads placed alongside web content, and AdSense for search, which allows publishers to place a custom Google search engine on their site and generate revenue from ads shown next to search results. Since AdSense for content and AdSense for search offer publishers different services, the revenue shared with publishers differs for each of these products.

AdSense for content publishers, who make up the vast majority of our AdSense publishers, earn a 68% revenue share worldwide. This means we pay 68% of the revenue that we collect from advertisers for AdSense for content ads that appear on your sites. The remaining portion that we keep reflects Google's costs for our continued investment in AdSense — including the development of new technologies, products and features that help maximize the earnings you generate from these ads. It also reflects the costs we incur in building products and features that enable our AdWords advertisers to serve ads on our AdSense partner sites. Since launching AdSense for content in 2003, this revenue share has never changed.

We pay our AdSense for search partners a 51% revenue share, worldwide, for the search ads that appear through their implementations. As with AdSense for content, the proportion of revenue that we keep reflects our costs, including the significant expense, research and development involved in building and enhancing our core search and AdWords technologies. The AdSense for search revenue share has remained the same since 2005, when we increased it.


[buzzmachine.com...]

I had two primary complaints about Google in my otherwise admittedly and obviously wet-kiss book, What Would Google Do?: Google’s policy aiding government censorship in China and its opacity on advertising relationships. The first is pretty much fixed and this morning, Google is addressing teh second. so is the second. (Uh-oh, now I have fewer excuses not to be a fanboy.)

At a press meeting with Google execs in Davos in January, I pressed them about the advertising openness, having discussed the issue with publishers at DLD in Munich right before. In Davos, Google’s president of global sales, Nikesh Arora, replied that the company was reconsidering its transparency on AdSense. This morning, they’re revealing the deal in a blog post (to which I’ll link as soon as it’s up; this news was embargoed for 10a ET). From the post:

[edited by: Brett_Tabke at 3:16 pm (utc) on May 24, 2010]
[edit reason] added quotes? [/edit]

Lapizuli

5:12 pm on May 24, 2010 (gmt 0)

5+ Year Member Top Contributors Of The Month



I'm not sure I'm getting why folks are saying publishers get paid different percentages.

Doesn't the difference in what publishers get paid per click lie not in percentages, but in amounts advertisers pay for those pages?

It's about smart pricing, right? If I recall correctly, the Google AdWords help pages say that smart pricing saves advertisers money - which would imply that the advertising fees are where the cuts are, not that publishers are paid less of a percentage.

cwnet

5:29 pm on May 24, 2010 (gmt 0)

10+ Year Member



What am I missing?

Minimum bid on Adwords is 5 cents (right?)
Revenue share of 68% means roughly 3.5 cents (right?)

Why do people (Adsense Publishers) report 1 cent clicks?

weeks

5:32 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Max said...
Secondly, this makes me wonder if I should be using my own site search script with embedded content ads (68% rev share) versus the Adsense Search (51% rev share).
That 17% could make a big difference.
Interesting.


Yeahhhhh, there is all kinds of thinking to do.

And, yes, the reports has been about 70 percent, but it was guessing, most figured. Trying to figure out who has something meaningful to say about G and who doesn't is difficult since everyone has something to say about G.

It depends so much on the website.

netmeg

5:37 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member netmeg is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



What am I missing?

Minimum bid on Adwords is 5 cents (right?)
Revenue share of 68% means roughly 3.5 cents (right?)

Why do people (Adsense Publishers) report 1 cent clicks?


Well for one thing, your premise is wrong. There hasn't been a five cent minimum on bids for years. I bid lower than that all the time. The ad served could have been from a different network with a different rev share. It could be a CPM ad. There's rounding and fractions. All kinds of reason.

AndyA

6:28 pm on May 24, 2010 (gmt 0)

10+ Year Member



I don't think it's quite as easy to determine how much a click pays. Just because we may see a 1 cent click, that doesn't really mean that's all that was paid for that click. I think Google intentionally spreads out the reporting of clicks, amounts paid, etc., to obfuscate the true value of a click.

If they didn't, it would invite abuse by some unscrupulous publishers. I wouldn't be surprised to see high value clicks spread out over a period of days, including some 1 cent clicks showing up just to throw everyone off.

Nothing Google does is simple. It would be totally out of character for them to report 1 click = x amount on a certain day. They have some big algorhythm designed to confuse everyone.

purplecape

6:41 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member



Lapizuli, under smart pricing, Google has said that the advertiser pays less for a click that Google has determined to be *worth* less, due to the site on which it appears. Google doesn't necessarily change the percentage share on those: if a $1 click is smart-priced to be worth 50 cents, the average payout could well be 34 cents.

cwnet, to add to what netmeg said, another reason you could see 1-cent clicks is that that is what Google pays AFTER smartpricing. You don't see smartpricing deducted in your reports, do you?

Overall, the way I interpret the impact of smart-pricing is that it reduces the amount charged to advertisers. The resulting money is then divvied up, with Google paying out 68%. You can argue that they pay the same % to all publishers, or a different one, but logically I think that the smart-pricing discount is applied first.

wildbest

7:16 pm on May 24, 2010 (gmt 0)

5+ Year Member



(a) Over the next few months we’ll begin showing the revenue shares for AdSense for content and AdSense for search right in the AdSense interface.

Why not AdSense for domains as well?

Bddmed

7:25 pm on May 24, 2010 (gmt 0)

10+ Year Member



Additionally, the revenue shares for AdSense for content and AdSense for search also can vary for major online publishers with whom we negotiate individual contracts.


So you did negotiate and have a different payout %, or it is 68% for content, period!

outland88

7:35 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Well for one thing, your premise is wrong. There hasn't been a five cent minimum on bids for years. I bid lower than that all the time.


What, Huh. Routinely bidding less than five cents in Adwords. Are you the exception or the rule?

The only time I see comments like this is from very large Adword businesses. They claim they can get you clicks for pennies because they run hundreds of accounts and serve millions of keywords.

SanDiego Art

7:47 pm on May 24, 2010 (gmt 0)

10+ Year Member



The point is, there is no $0.05 MIN, especially through the CONTENT (Adsense) Network. It has nothing to do with business/account size. It depends on ad/page view inventory and competition for that category.

Whether or not YOUR account sees < $0.05 clicks isn't the point. It is possible, and his explaination is correct that there are other factors (ex. CPM) that clearly shows the previous argument isn't sound...

Webwork

7:59 pm on May 24, 2010 (gmt 0)

wildbest

8:02 pm on May 24, 2010 (gmt 0)

5+ Year Member



The ad served could have been from a different network with a different rev share. It could be a CPM ad. There's rounding and fractions. All kinds of reason.

So, nothing is revealed unless those kinds of reason is revealed?!

netmeg

8:29 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member netmeg is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



What, Huh. Routinely bidding less than five cents in Adwords. Are you the exception or the rule?


Given how many people routinely complain about $.01 clicks, you tell me? I'm pretty sure I'm not the exception.

Heck, when I was running a very small (i.e. $5/day) AdWords campaign for one of my own sites, I was bidding at a MAX .03/click on about 950 keywords. Because of my quality scores, I got plenty of clicks on well over half of them. I'm not a large AdWords advertiser by any definition. Even if I combine all my clients, which then takes me to mid to high five figures a month - that's not *large* AdWords account. Middling at best.

arieng

8:55 pm on May 24, 2010 (gmt 0)

5+ Year Member



I may be wrong, but I think smart pricing could also push down the value of a click. I'll venture a guess that when a page gets a smart-price adjustment, the discount in the value of the click is shared equally between Google and the publisher. Could explain some of the $.01 clicks.

AdSenseAdvisor

9:36 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I wanted to address a few of the questions in this thread. First, the 68% revenue share for AdSense for content applies to all online publishers. It is not an average revenue share.

If you show AdSense for content ads on your pages, you will receive 68% of the amount advertisers pay for those ads. While we have negotiated individual contracts with some major online publishers, these amounts are not averaged into the revenue share disclosed today. Further, there is no amount taken off the top. You get 68 percent, period, and this number has not changed since we launched AdSense for content in 2003.

Second, the AdSense for Content and AdSense for search revenue numbers mentioned in today’s blogpost are now being displayed in the new AdSense interface (still in beta). These numbers will also be available in the existing interface soon as well.

- Rohit

tim222

10:12 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member



68% fits my estimate, and is fair compensation IMHO.

ken_b

10:26 pm on May 24, 2010 (gmt 0)

WebmasterWorld Senior Member ken_b is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



ASA;
Thanks for stopping by with that info.

IanCP

11:15 pm on May 24, 2010 (gmt 0)

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I had always assumed 70/30 same as I got from a banner ad agency 10+ years back.

Not far off the mark.

ThatsBoBo

12:32 am on May 25, 2010 (gmt 0)

5+ Year Member



Thanks ASA!

That clears up all my questions.

Cheers!

physics

1:02 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The way it's written it definitely seems to say that they pay 68% to everyone unless a specific other percentage has been negotiated. So from what I'm reading 68% is not the average it's the default.

Is this how you read it?

BillyS

1:19 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member billys is a WebmasterWorld Top Contributor of All Time 10+ Year Member



This topic has been debated many times in the past and the conclusion was always 60 - 70%. AdSenseAdvisor just clarified the 68% applies to everyone. If you can find a better payout, then you owe it to yourself to switch.

Case closed. :)

panicbutton

1:46 am on May 25, 2010 (gmt 0)

10+ Year Member



I think it's fab that Google have disclosed publisher adsense share, now, how about some more transparency on currency exchnage rates? I'm paid in local currency (AU$) but there seems to be no correlation between changes in Adsense earning and exchange rate flunctutations. My site is US based and 95% of advertisers are US based. Back in ye olde days when I was paid in $US things were transparent. Now I don't seem to reap the benefit of a falling local currency:-(

tangor

3:46 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member tangor is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month



Google has revealed exactly how much revenue it shares with third-party websites who run text advertisements brokered through its AdSense service.

With a Monday blog post, the company said that under its AdSense for content program — which serves those familiar "Ads by Google" onto webpages — sites receive a 68 per cent cut of revenues. But under its AdSense for search program — where sites offer a customized Google search box — the cut is 51 per cent.

These are the standard shares, but large publishers can negotiate their own contracts with the company.

Until now, Google has remained completely mum on AdSense revenue shares, and this led many to question whether the cuts were shrinking from year to year. But with today's blog post, Google says that the cut has been the same for AdSense for content since it launched in 2003 and that the cut for AdSense for search changed only once, in 2005.

[theregister.co.uk...]

Just more info revealed from a different source...

bouncybunny

5:06 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member



...there seems to be no correlation between changes in Adsense earning and exchange rate flunctutations. My site is US based and 95% of advertisers are US based. Back in ye olde days when I was paid in $US things were transparent. Now I don't seem to reap the benefit of a falling local currency:-(


I would love some confirmation about about this also. I have no particular theory about this, but the month that I went over to local currency payments, my earnings appeared 'adjusted' and have never bared much relationship to the vast fluctuations in the currency differences since then.

ganeshcp

5:29 am on May 25, 2010 (gmt 0)

10+ Year Member



I wonder how smart pricing comes into pay with this share percentage.
I've used adwords and adsense, the numbers don't seem to co-relate. The only thing that can explain that is smart pricing or some kind of variation according to the website.

Petrogold

6:45 am on May 25, 2010 (gmt 0)

5+ Year Member



How to get 90%? What KW,SEO,Contents or AW support required? Folks more reviews required please to win win for all of WMs.

Petrogold

6:56 am on May 25, 2010 (gmt 0)

5+ Year Member



Minimum bid on Adwords is 5 cents (right?)
Revenue share of 68% means roughly 3.5 cents (right?)

Why do people (Adsense Publishers) report 1 cent clicks?
------------------------------------------------------
That's a good question. More transparency required. Google may show detailed reports including number of click frauds & total earnings(-)minus their shares & that of to publishers. Will they reconsider?

jetteroheller

8:11 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member jetteroheller is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



My estimation was very close, 2/3 for me 1/3 for Google.

BigDave

8:29 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member bigdave is a WebmasterWorld Top Contributor of All Time 10+ Year Member



This is very interesting. First off, I thought it was higher (75-80%). Secondly, this makes me wonder if I should be using my own site search script with embedded content ads (68% rev share) versus the Adsense Search (51% rev share).


Haven't we heard for years that people pay more on adwords for search? I'd rather have 51% of 0.30 than 68% of 0.10. Not to mention all the additional work.

tangor

10:20 am on May 25, 2010 (gmt 0)

WebmasterWorld Senior Member tangor is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month



Been there, done that, don't speak (usually). Pretty much done with G anyway.
This 67 message thread spans 3 pages: 67
 

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