Is Google losing money?

[shadow500]

Just this question to all webmasters that was affected by low QS.
Because of QS in my Adwords account i'm spending 10 times less than before (because Google don't let me spend more!) and my Adsense revenue moves from 100 to 60.
So 100 Adword becames 10, 100 Adsense became 60.
I'm not more taking this money, but Google too, so if there are millions of webmasters in this situation Google is surely not growing his own money...

What you think about this?
Is Google crazy to make an operation like that just for "clean" sponsored results?
How many people are interested by this update?
It will be useful to set up a poll...

[trannack]

The thing is for every "unhappy" person - there are probably 10 others that are very "happy" with the new QS and Algo changes. Most people only tend to post when they have a problem or have a gripe. Threads would intrinsically become very dull if all you heard was the "everything is working great for me, I'm earning loads, my adwords expenditure has come down...blah, blah"

So if you put it into perspective - they are probably at worst making the same money as before - and chances are they are making more. As with most businesses - they are unlikely to do anything to upset their shareholders. And recent figures certainly show a growth beyond expectations.

Remember - the internet is growing at a vast rate - where they may lose some customers - there will probably be a whole host of others queueing to join.

There has been a whole host of "unhappy" customers this year - some legitimate - others not. Some wander off to explore other PPC and advertising opportunities. However - at the end of the day, nearly everyone agrees that Google still works the best for them.

Google has the most traffic, has the most successful advertising program, and by far the simplist to use PPC.

Diversification is sensible and fantastic - but at the end of the day, if you are in business, you really do need Google at the moment. Whether it is for organic or PPC traffic, or whether you use their advertising programmes. Sad, but true. :)

[Pengi]

Anyone who claim that Google are losing money due to the QS because their personal Adwords bill has reduced should also consider the number of webmasters whose Adsense earnings has fallen further.

I'll own up. My current main site is about click arbitage. The QS Hit me. My Adwords bill fell by about $500 a week. But my Adsense earnings fell further - $1000 a week. Net result is that my site is taking less money out of the kitty. Maybe Google share the benefits with the "foundation adveritsers" (those actually offering products or services) or maybe they keep them all, but the benefits are there.

[Fryman]

Well, I was spending almost 20k a month with adwords, now I am spending 1k.

[Pengi]

Well, I was spending almost 20k a month with adwords, now I am spending 1k.

Maybe - but my point was that if you were also receiving 40k in return from adsense, then there is now more money left in the kitty not less.

If you were not receiving money back from advertising then I guess that you need to find another means of advertising your wares - but my guess is that you were making a profit from click arbitage - if so then Google wins.

[La_Valette]

Google is NOT losing money:

2005 total Google profit: $1,465.40m
2004 total Google profit: $399.12m
2003 total Google profit: $105.65m
2002 total Google profit: $99.66m

Note that not only is Google making plenty of money, it is making around 14x what it made just 4 years ago... and rising.

[marketwatch.com...]

So somebody must still be paying up.