Google AdSense gives Publishers 60%-80% of Revenues

[Nacho]

Thank you Gary for bloging (http://blog.searchenginewatch.com/blog/041115-192457) the filing.

According to the latest SEC filing for Google Inc. (http://www.sec.gov/Archives/edgar/data/1288776/000119312504197540/d10q.htm) reported for For the Quarterly Period Ended September 30, 2004.

In page 7 and 8, it lists how the "Google Network web sites" (aka. Adsense) brought revenues of $1,064.2 million where as the cost of those revenues which consists primarily of traffic acquisition costs is $851 million. If math serves me right, that's 80%. I'm sure there are some technology and other cost involved in there, but still, that's really good.

Wow! Don't you think that Google can be your best partner for profit sharing on your content?

I do! Thank you Google :)

[Nacho]

Here is another way to look at it with Forward Half-Twist plunge. . . . I mean example.

Say I spend $339.25 in the last 7 days in Adwords, which average to $0.11 CPC for 3,161 clicks.

Now, on the other hand I earned $169.39 in the last 7 days in Adsense, which average to $0.08 PPC (profit per click).

What do I get? A net spent of on Adwords of $169.86 or $0.05 CPC which is 50% SAVINGS when looking at all the digits.

How does my ROI and Adquisition Cost looks like after this? It pays off to have Adsense - period. Oh, by the way, our conversion rates on orders per traffic has not been affected at all.

Very Nice! :)

[seobook]

In page 7 and 8, it lists how the "Google Network web sites" (aka. Adsense) brought revenues of $1,064.2 million where as the cost of those revenues which consists primarily of traffic acquisition costs is $851 million. If math serves me right, that's 80%. I'm sure there are some technology and other cost involved in there, but still, that's really good.
I think that it is a variable rate where some people get like 90% and some get like 40 - 50%

[Jenstar]

The SEC filings (I also went over them with a fine tooth comb when they first came out) included premium publishers in those figures, and I assume they do get a larger piece of the pie, since they are higher profile and potentially would earn a significant higher portion of revenue over regular publishers. Interestingly enough, some of those premium and search partners are "loss leaders", where Google is paying out more than those partners bring in for revenue. Some premiums are paid on an impression basis, not a click basis, so I would guess those partners are responsible for the loss. I have not been through the most recent one as thoroughly yet, but I would be surprised if it said much different, since in the first ones, Google said it expected to be losing money on some of these partners for some time (I am guessing until the contracts expire).

If I had to take a guess at it, I would say regular publishers earn somewhere in the neighborhood of 60% of what Google charges the advertiser for each click.