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What is the AdSense revenue share?

         

joel2280

2:01 pm on Aug 14, 2005 (gmt 0)

10+ Year Member



Are we getting paid like 1%, or 20%, or what? compaired to what google gets paid per click?

abbeyvet

2:24 pm on Aug 14, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Way more than that. I believe it is somewhere of the order of 70% or so.

Someone had an accurate sounding figure once but I cannot find it now. I suspect it may not be consistent, but vary a bit from publisher to publisher - though that is just my feeling, no data to support it.

Think of it more as Google taking a commision for finding advertisers for your site.

Visi

2:49 pm on Aug 14, 2005 (gmt 0)

10+ Year Member



According to financial data on google their cost of adsense type of ads, including partners, premium sites and webmasters is abot 75%. This includes all costs associated with delivering the ads and is in general the number you see published. It is a little misleading to be used as a share of ad revenue breakdown but is the best we have at this time.

calman

1:57 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



I think abbeyvet has it about right (I have seen figures in the 75% range). I believe the figure has been calculated by some financial analysts (especially important now that Google is a publicly traded company).

I also remember seeing an article that premium publishers such as AOL have negotiating room in determining their payout percentages.

This means, of course, that their payout percentage would be somewhat above the average, while those of the thousands of regular adsense publishers would be below. We seem to have no idea of what the relative differential is.

We also seem to have no idea if all regular adsense publishers (regardless of volume) receive the same percentage payout. Does a publisher doing $10,000 a month receive a different percentage payout from one doing "100 a month? Nobody seems to know.

Google does know, of course, but I am sure they will not be telling us anytime soon.

Angelis

2:00 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Why doesnt someone test the theory and click on one of their own adwords adverts...

Cant be considered fraud its you're money :)

europeforvisitors

2:02 pm on Aug 15, 2005 (gmt 0)



Cant be considered fraud its you're money :)

It's the advertiser's money.

Angelis

2:04 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Which is you.

I meant e.g. I put an add up about fdshfjkfs8343290 (which nobody else is likely to be bidding on and then I click the link on my adsense pages.

e.g. the advertiser = you, the clicker = you.

It was a joke btw but it would give you the answer you seek.

YesMom

2:10 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Cant be considered fraud its you're money

Interesting thought! If you were to click on your adwords ads on another person's site, that certainly isn't fraudulent. I just wonder if the % is the same for search and for content network.

sailorjwd

3:51 pm on Aug 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It makes little sense for G to adjust payout percent on a per account basis. I would bet there are just two levels - premium (negotiated) and the rest of us.

I think 70% is a good guess for our payout (within a percent anyway).

shez

4:38 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Its 40-60%

OptiRex

4:43 pm on Aug 15, 2005 (gmt 0)



Cant be considered fraud its you're money :)

I seem to remember a similar thread last year and it was suggested that even if one clicked on one's own ad it was still considered by G to be fraud.

I can't remember if that opinion came from old ASA etc.

hunderdown

5:20 pm on Aug 15, 2005 (gmt 0)



Its 40-60%

shez, since that's much lower than the figure usually accepted here, which is based on Google's financial reports, I am sure I'm not the only one here who would appreciate your telling us what the basis is for your statement.

Thanks.

speedpro50

5:46 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Most ad networks I know of only pay out 50%, sometimes 60%. Why would G be any different?

abbeyvet

6:14 pm on Aug 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Why would G be any different?

Google IS different, in innumerable ways. Why not in this one also?

TheRookie

6:19 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Most ad networks I know of only pay out 50%, sometimes 60%. Why would G be any different?

Why would they be the same?

calman

6:32 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



A couple of reasons why Google is different:

1) The higher payout attracts a much larger volume of publishers. Google needs content (the publishers) before they can sell the advertising. The higher payout attracts publishers. There have been numerous threads here stating that publishers generally do better with AdSense than with their competitors.

2) Because of its large volume relative to its competitors, Google can amortize its fixed costs across a much larger volume of business than its competitors. It can simply afford to pay out a higher percentage.

I'm sure I could think of many more reasons, but these are two to start with.

europeforvisitors

7:05 pm on Aug 15, 2005 (gmt 0)



It makes little sense for G to adjust payout percent on a per account basis. I would bet there are just two levels - premium (negotiated) and the rest of us.

On the contrary--A sliding scale or an even more complex formula makes a lot of sense for at least two reasons (and probably more):

1) Competitors can't lure publishers away with higher payouts, because they don't know what percentage a given publisher is receiving.

2) Google can influence the Web's evolution by how it distributes AdSense compensation. (For example, it might give higher payouts for original content than for scraper pages and ODP clones, or it might have a sliding scale that--like smart pricing--is tied to expected conversion rates.)

sailorjwd

7:38 pm on Aug 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



EFV,

I usually tend to go with the simplest approach. I know what my payout rate is although I can't say because of TOS and the mods will delete it. And, there isn't anything special about my site.

Actually I know the Minimum payout for my site based on a max of $50 bid and highest EPC received.

If your max epc was 5.0 then you can say your min payout is 10%. If your max epc was 50 then you got a 100% payout.

Visi

11:20 pm on Aug 15, 2005 (gmt 0)

10+ Year Member



Well just finished plowing through the detailed financial reports and best guess at ad revenue is just under 70& overall for the program. This includes the premium partners costs and other long term agreements that are in place. Assuming they get a higher percentage would roll adsense percentage to the 60-65 % range. Found it interesting that in the 3 month comparisons that depeciation of assets (+28.3 mil) credit card processing (+8.5 mil) and new services (+4.9 mil). As I always thought adsense revenues (not 100% of search revenues)are being used to finance googles new services being introduced.

So if my math is right (questionable:)) then adsense payout increase was actually 217 mil over 300 mil in revenue increases (3 months) or 70%.

Not that far off from rough estimates of 75% but enough.

europeforvisitors

11:50 pm on Aug 15, 2005 (gmt 0)



Actually I know the Minimum payout for my site based on a max of $50 bid and highest EPC received.

If your max epc was 5.0 then you can say your min payout is 10%. If your max epc was 50 then you got a 100% payout.

Don't forget "smart pricing." Advertisers pay full retail for search ads, but they get varying discounts for content ads. So a nominal bid of $50 or $5 or even 50 cents might actually cost the advertiser far less on a content-network page, which means less money for the publisher and for Google.

Also, as several members have pointed out in other threads, advertisers aren't required to have their ads appear on the content network, and high-priced ads are likely to be restricted to search.

surfer67

12:17 am on Aug 16, 2005 (gmt 0)

10+ Year Member



Does adwords have a minimum bid amount policy? If Adsense pays 75%, then what were the bids for the 3 cent clicks we have seen?

JoeS

1:36 am on Aug 16, 2005 (gmt 0)

10+ Year Member



I believe Google is paying most of us 60% of revenue per click. The minimum bid per click is 5 cents and I have seen payment of 3 cents per click.

I bet premium publishers get more than the rest of us since they have better quality traffic.

Visi

1:38 am on Aug 16, 2005 (gmt 0)

10+ Year Member



As noted figure adsense payout in 60-65% range or .03 for a .05 click. Simple approach not taking into account any (smoke and mirrors) smart pricing:)

YesMom

1:43 am on Aug 16, 2005 (gmt 0)

10+ Year Member



<edit> dumb post ... never mind </edit>

FromRocky

2:08 am on Aug 16, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Actually I know the Minimum payout for my site based on a max of $50 bid and highest EPC received.
If your max epc was 5.0 then you can say your min payout is 10%. If your max epc was 50 then you got a 100% payout.

As EFV pointed one of the important factors which affect the payout is “smart pricing”. Another factor is more important to consider is the difference between the bid price (Max. CPC) and the actual cost, the advertiser has to pay for each click. For more inside, prefer to this thread, msg #2.
[webmasterworld.com...]

I meant e.g. I put an add up about fdshfjkfs8343290 (which nobody else is likely to be bidding on and then I click the link on my adsense pages.

You don’t need to test. I can tell you. The actual cost you have to pay is $0.05 and you get back about $0.03 if “smart pricing” is not a factor for your site.

hunderdown

3:35 am on Aug 16, 2005 (gmt 0)



Maybe I'm missing something here, but just because the minimum bid is 5 cents, and the lowest income per click you've seen is 3 cents, or 60%, why is it reasonable to conclude that this is the share for ALL AdSense revenue?

First of all, I've seen 2-cent clicks.

Second, there's smart pricing.

Third, there are rounding errors. You could be getting 3.49 cents out of 5 cents and it would get reported as 3.

Fourth, how do we know that Google doesn't have a sliding scale for clicks, and pay out proportionally less per low-value click than what they pay for high-value clicks.

The AdSense system is a large black box. We don't know what's inside it. We can make some informed guesses, as people like EFV have done, or analyze the financials, but we just don't know.

I don't put a lot of energy into finding out. What I do know is that I'm making much more money from my part-time work on my site than I did before AdSense came along, and more money than I could from any alternative.

7_Driver

9:13 am on Aug 16, 2005 (gmt 0)

10+ Year Member



It may well be 70% average - but that's skewed upwards by the much higher figures paid to a few mega-traffic companies.

I'm pretty sure the rest of us are getting 50%.