January 15, 2006
AdSense pays publishers 78.5 cents on the dollar, according to NYTimes
I was reading the New York Times article (non-registration link here) tonight "Google's shadow payroll is not such a secret anymore" (which features Shawn Hogan of Digital Point) and one paragraph literally jumped out at me - namely a specific figure given to the ultra secret revenue share.
Google.com and the company's foreign search sites contribute more to Google's bottom line than AdSense, because for every dollar the company brings in through AdSense and other places that distribute its ads, it pays roughly 78.5 cents back to sites like Digital Point that display the ads.
Yes, the article clearly states Google pays roughly 78.5 cents for every dollar an advertiser pays for advertising on partner sites. Unfortunately, it isn't clearly attributed to anyone. However, this figure is definitely in the neighborhood of what I had believed the revenue split was at, so I do believe it is fairly accurate to my knowledge, based upon the information given in the SEC filings.
Posted by Jenstar at January 15, 2006 11:52 PM
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Listed below are links to weblogs that reference AdSense pays publishers 78.5 cents on the dollar, according to NYTimes:
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It's on a $ 1 gross revenue... or on $ 1 net revenue?
Posted by: pascal rossini at January 16, 2006 02:27 AM
I was wondering the same thing as the previous commenter - it's expensive to run a program like AdSense. I wonder if that's the gross or net payout?
Posted by: Paul Short at January 16, 2006 02:59 AM
Hemm, pretty good deal as Google is growin' day by day and there is a need for Google to have open policies (though they never reveal anythin' about AdSense!)
Just my 3-cent worth of comments. :p
Posted by: Abdul Rahman at January 16, 2006 03:14 AM
10 grand/month he makes at Digital Point? I would've thought more - I make 80 million dollars a day. I'm lying. I'm sorry.
Posted by: Brian at January 16, 2006 12:04 PM
This is a clear case of a reporter not understanding Google - and not being able to read Google's annual report. As John Battelle notes, and as I blogged about last March, this 78.5% figure is Google's TAC - traffic acquisition costs.
It is definitely NOT the revenue split for AdSense for Content!
I.e. when Google gets clicks from AOL via AdSense for Search, they have to pay 78% of their revenue to AOL. That's a negotiated deal with large traffic providers.
99.9% of AdSense for Content publishers have no such deal. Google takes a much larger percentage from bloggers than they do from negotiated search traffic sources.
Logically, as an AdSense expert do you think Google is paying 78% of what the AdWords bid is for a certain keyword?!? I think Google's typical AdSense for Content payout is under 30% of the price on the AdWords keyword...
See here for more details:
Posted by: John K at January 17, 2006 08:48 AM