Google reported revenues of $5.52 billion in the second quarter of 2009, representing a 3% increase over second quarter 2008 revenues of $5.37 billion. Google Sites Revenues – Google-owned sites generated revenues of $3.65 billion, or 66% of total revenues, in the second quarter of 2009. This represents a 3% increase over second quarter 2008 revenues of $3.53 billion. Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $1.68 billion, or 31% of total revenues, in the second quarter of 2009. This represents a 2% increase from second quarter 2008 network revenues of $1.66 billion. International Revenues – Revenues from outside of the United States totaled $2.91 billion, representing 53% of total revenues in the second quarter of 2009, compared to 52% in the first quarter of 2009 and second quarter of 2008. Revenues from the United Kingdom totaled $715 million, representing 13% of revenues in the second quarter of 2009, compared to 14% in the second quarter of 2008. Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of AdSense partners, increased approximately 15% over the second quarter of 2008 and decreased approximately 2% over the first quarter of 2009. Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of AdSense partners, decreased approximately 13% over the second quarter of 2008 and increased approximately 5% over the first quarter of 2009. TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, decreased to $1.45 billion in the second quarter of 2009, compared to TAC of $1.47 billion in the second quarter of 2008 . TAC as a percentage of advertising revenues was 27% in the second quarter of 2009, compared to 28% in the second quarter of 2008. The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.24 billion in the second quarter of 2009. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $218 million in the second quarter of 2009. Source: http://investor.google.com/releases/2009Q2_google_earnings.html Regards, RightMan
It is interesting to note that even though the aggregate number of paid clicks increased by 15%; TAC....its payout to its partners (including adsense publishers) actually decreased! Regards, RightMan
I heard a very good term here, to explain this phenomena...It is called smart-pricing! Regards, RightMan
Probably because market participants expected a lot better performance or it might simply be the case of buy on rumor/expectation and sell on news! Entirely possible...but the up tick in total revenues along with the increase in total paid up clicks should also get effectively reflected in their payout to their partners! Regards, RightMan
I hope now eveyone must have understood why cpc are moving down side . Lets hope for the best and pray that next Google result come up with more good news .
I don't even think I'd know how to count that high. I wonder if anything at all can drive Google down
what surprises me most is that there is only a small fall from 1.47 billion to 1.45 billion in advertising revenues generated from sites that Google shares this revenue with. Given the recession i would have expected this to get hit harder. That's a good thing for us website owners using adsense
The fall you have noticed is not in the advertising revenues itself, it is in fact TAC (traffic acquisition cost) shared by google with its partners ( read adsense publishers) that has actually fallen! To quote from the above.... If I am interpreting it correctly, it simply means that big G has decided to keep one more percent of revenues from the share of its partners...for itself! Regards, RightMan