Google AdSense Giving Publishers Average of 78% Revenue Share
The percentage share of advertising revenue that Google AdSense publishers get from Google is always subject to open debate and speculation, as Google has never officially announces or reveals the revenue share it gives out and distributes to websites’ partners and publishers. But with the listing of Google in NASDAQ as public company and various form 10-Q unaudited quarterly financial reports given by Google in the SEC filings, the Google AdSense’s revenue share for publishers secret has been revealed.
New York Times has calculated and published the cut that a publisher gets from Google in AdSense program. The calculation was based on Google’s Q3 2005 financial report, and the magical figure is that publishers and partners get 78.5% cut of the ads revenue served from their sites. So for every dollar that Google collects from advertisers, 78.5 cents are later paid to Google AdSense publishers and partners.
With the release of latest Google third quarter 2006 financial results, the finding of revenue sharing at 78.5% is more or less correct and consistent. From the reports, Google reveals that Google Network Revenues, the revenues generated by Google’s partner sites through AdSense programs totaled $1.04 billion. And Traffic Acquisition Costs (TAC), which is the the portion of revenues that Google shared with Google’s partners and publishers is $825 million. This translates into payout ratio of about 79%. If only AdSense publishers are taking into account (TAC consists of costs paid to AdSense publishers, certain distribution partners and others who direct traffic to Google’s website), the publishers’ revenue cut totaled $780 million. If all revenue from Google Network Revenues is considered to be generated from AdSense’s partner (Google doesn’t differentiate between AdSense and other third party distribution channels), then the revenue split for AdSense’s partners will be 75%.
However, most likely an AdSense publisher won’t consistently and always get at least 75% of the advertising income from the click on the ads. And the revenue share may be lower quite a lot from 78%. The CPC of AdSense ads is always fluctuating based on variety of factors, such as smart pricing, and it the split or cut may be different between premium publishers and normal publishers, or even between sites of different size. What certain is that no publisher will know for sure what percentage he or she is getting from the ads revenue generated from his or her sites.
Whatsoever, with the average revenue share to AdSense publishers of around 78.5% (or between 75% to 79%), the payout ratio is very generous and high compared to other ads network. For example, Tribal Fusion pays publishers 55% of all revenue generated from the site, Blogads takes 30% of ad fee from publishers, popular AdSense alternative AdBrite takes 30% share of ad revenue and Casale Media also payouts 70%.
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Entries (RSS)
November 13th, 2006 23:35
[...] So, should you join and use ReviewMe? For advertisers, the answer is pretty obvious, if the price is right. For bloggers, it involves some ethical question of whether you should get paid to blog. Some loathes at paid blogging or paid posting, while some said it’s of no different to display advertising or text links ads or contextual ads such as Google AdSense, Yahoo! Publisher Network, Tribal Fusion, ValueClick, Chitika, TextLinkAds and etc. However, ReviewMe does have the potential and opportunity to provide additional revenue stream to the bloggers in addition to regular ads on the blog, beside increase the blog’s contents. And in some sense, it’s better that those annoying pop-under or pop-up ads. However, the lion share of 50% revenue share of ReviewMe might discourage some value bloggers, considering even Google AdSense paid more than 70% of ads income to publishers. [...]
September 12th, 2007 23:06
[...] it can get away with treating publishers like crap? Hardly. It has been calculated that Google give 78% of the revenue to publishers. This is a much better cut than many advertisers give. For example ReviewMe keeps 50% of the [...]
September 14th, 2007 02:00
[...] it can get away with treating publishers like crap? Hardly. It has been calculated that Google give 78% of the revenue to publishers. This is a much better cut than many advertisers give. For example ReviewMe keeps 50% of the [...]
September 20th, 2007 17:14
[...] right, 100% of ads money generated from your impressions and clicks belong to you (less Google share, which you have no control [...]
September 20th, 2007 21:18
[...] Original post by google_ad_host Host ID in Google AdSense Ad Unit Code and Revenue Sharing » My Digital … [...]
October 24th, 2007 03:41
78% seems a very good figure to me, even 75% or 70%. This is good to know.
December 8th, 2007 20:32
But how does one know if the earnings figures are accurate? People have been known to cook the books. I’m not saying this is the case. I’ve been looking into Adsense but still unsure.
February 7th, 2008 17:58
Giving over 78% to publishers is quite good percentage of revenue sharing. I think it will be increased a bit more in the coming years.
February 7th, 2008 18:59
The revenue share actually going to average of 77% in the last quarter of 2007.
April 27th, 2008 17:16
[...] was published before by New York Times based on announced 2006 Google financial reports estimating 78.5% of the AdSense clicks going to the publishers. Such a big number makes you wonder why wouldn’t Google reveal it. One reason I can think of [...]
May 14th, 2008 04:43
[...] was published before by New York Times based on announced 2006 Google financial reports estimating 78.5% of the AdSense clicks going to the publishers. Such a big number makes you wonder why wouldn’t Google reveal it. One reason I can think of [...]
September 5th, 2008 21:32
[...] I haven’t personally tried BANS but I don’t suggest anybody to buy it, because the eBay affiliate program is not as profitable as some other ones like Clickbank, even Adsense. Since eBay is only sharing a small part of their bid revenue, about 4% of the closing value of a winning bid, which is not generous compare to 75% of Clickbank and 78% of Adsense revenue share. [...]