May 24, 2010

Google Reveals AdSense's Revenue Share

Google revealed an important secret: the revenue shares for two AdSense services. Until now, publishers didn't know the percentage of the revenue that is paid by Google.

"AdSense for content publishers, who make up the vast majority of our AdSense publishers, earn a 68% revenue share worldwide. This means we pay 68% of the revenue that we collect from advertisers for AdSense for content ads that appear on your sites. (...) We pay our AdSense for search partners a 51% revenue share, worldwide, for the search ads that appear through their implementations."

It's interesting to note that the revenue share for AdSense for content has never changed since the service was launched, back in 2003.

Sevices like Google Search, AdWords and AdSense are usually treated as black boxes, since Google rarely reveals specific information about its algorithms.

Google AdSense's help center still says that "each AdSense publisher receives a percentage of the cost an advertiser pays for user clicks or impressions on their ad. This percentage is referred to as the revenue share. Google does not disclose the revenue share for AdSense."

Google's financial results for the first quarter of this year, show that only 30% of Google's total revenue is from partner sites and the traffic acquisition cost (TAC) is 26% of the revenue. "The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.45 billion in the first quarter of 2010." Google's partner sites generated revenues, through AdSense, of $2.04 billion. Obviously, 1.45/2.04~=0.71, which is very close to the AdSense for Content revenue share.

5 comments:

  1. Bear in mind that even though the numbers haven't changed, this is an absolutely extraordinary amount of profit that is being pocketed by Google. 49% of all Google ads you see anywhere that isn't Google go to the company!

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  2. That's inaccurate. Most of the ads from non-Google sites are from Adsense for Content and the revenue share is 68% for publishers and 32% for Google. I think it's reasonable, considering that Google attracts advertisers, develops software for managing ads and runs a real-time bidding system for ads.

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  3. this is higher than what i expected
    32% for development??
    so much high I think !

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  4. i submited my adsense application in 2008 for the very first time and guess what? they disapproved it. however i created a new blog for technology, mobile phones, computers etc. etc and resubmitted it. google approved it within 3 days! i was amazed. but still my blog is in review so that i see no google ads in my blog. yet i am happy.

    but i just can’t understand what to blog about in my blog anymore. i appreciate if somebody with experience give me some adsense advice… :) :)

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  5. I am a Adsense publisher and been using it past 2 years.I am happy with my earning but i want to increase my earning further.Can you suggest me some other PPC programs with which i can add adsense and the other PPC to increase my earning...I heard Infolinks is best to work with Adsense.Please do let me know

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