Google Paying Smaller Percentage For Ad Revenue

Discussion in 'AdSense' started by clancey, Apr 4, 2006.

  1. #1
    Google paid a smaller percentage of its revenue to AdSense in the fourth quarter of the 2005 fiscal year and a smaller percentage in 2005 than in 2004. However, total money paid to AdSense participants and other ad generators was up.

    Google's traffic acquisition costs as a percentage of advertising revenue were 37% in 2003 or $526.5 million; 30% in 2004 or $1,226.7 million; and 35% in 2005 or $2,114.7 million. For the three months ending September 30, 2005 the cost was 34% or $529.9 million and for the three months ending December 31, 2005 it was 33% or $628.9 million.

    Of the increase between the third and fourth quarters, Google said $17 million was accounted for by higher data center costs and the balance by more advertiser fees generated through AdSense.

    In its form 10-K filing with the Security and Exchanges Commission for the 2005 fiscal year Google said it expects advertsiing revenue to continue growing in 2006, but said traffic acquisition costs will vary.

    One factor is its ability to "enter into more AdSense arrangements that provide for lower revenue share obligations or whether increased competition for arrangements with existing and potential Google Network members results in less favorable revenue share arrangements."
     
    clancey, Apr 4, 2006 IP
  2. Mr Crow

    Mr Crow Peon

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    #2
    I keep waiting for the government to go after them in the USA for a monopoly like the do with a bunch of other big companies

    I would like to see a bunch of search engines offer an alternative to google because they are not paying crap anymore
     
    Mr Crow, Apr 4, 2006 IP
  3. courtney

    courtney Peon

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    #3
    What "arrangements" do they mean?
     
    courtney, Apr 4, 2006 IP
  4. TommyD

    TommyD Peon

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    #4
    It is OK to be a monopoly. Xerox and M$ have been declared legal monopolies. No one gets any DOJ attack if they don't use illegal monopoly actions.

    So if G keeps its nose clean, papers will be clean too.

    tom
     
    TommyD, Apr 4, 2006 IP
  5. Mr Crow

    Mr Crow Peon

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    #5
    That after google fought the US in court over not wanting to give George (Adolph) Bush access to their servers and WON ( Hooray Google) I think someone over in Washington is digging like mad for a way to say they need to have a search warrant for their servers .... the dogs have been called out on google ... Just like the weopons of mass destruction accuse them and never have to show proof

    Mr Crow
     
    Mr Crow, Apr 4, 2006 IP
  6. clancey

    clancey Peon

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    #6
    By arrangements, I think they are talking about their "contracts" with the various classes of AdSense publishers.

    I can only surmise they want to pay a smaller proportion of the ad revenue to AdSense publishers. It sounds like they want to pay less to small websites and hope YPN and MSN will not force them to pay more to premium AdSense partners.
     
    clancey, Apr 5, 2006 IP
  7. john269

    john269 Notable Member

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    #7
    Unfortunately I wouldn't really call them a monopoly as there are other competitors that are now coming into the marketing like YPN.

    Also, compared the other programs on the Web Adsense pays alot more and also makes sure that you get paid.

    There are alot of other affiliate programs that pay per click and you know that if you go with some of these then you may not get paid, plus you may only get around $0.01 - $0.03 per click.

    Atleast with Google Adsense you can make anywhere from $0.01 - $5 plus per click and you know that you will get paid without fail if you don't cheat their system.

     
    john269, Apr 12, 2006 IP
  8. Mr Crow

    Mr Crow Peon

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    #8
    I just got 6 clicks in the last 1 hour and earned 14 cents ... go figure. can anyone explain how this can be
     
    Mr Crow, Apr 12, 2006 IP
  9. john269

    john269 Notable Member

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    #9
    What's wrong with that? With other ppc programs you are more likely to receive 6 clicks with only $0.14 income very often and most of the clicks will probably be around $0.01.

    With Adsense you can get alot of low paid clicks plus you also have the chance of getting some good paid clicks from them. I also depends on your sites topic aswell.
     
    john269, Apr 12, 2006 IP