>>> what is the real Google profits' margin??? >>>

Discussion in 'Google' started by Gaetano Marano, Dec 11, 2010.

  1. #1
    .

    despite AdWords costs very much, if you put AdSense ads on your site, you make few cents per day

    then, what is the real Google profits' margin between AdWords revenues and AdSense royalties???

    10% or (as I believe) over 90% ???

    .
     
    Last edited: Dec 11, 2010
    Gaetano Marano, Dec 11, 2010 IP
  2. hhsaus

    hhsaus Active Member

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    #2
    No-one but Google knows the right answer. We can only guess, and try to interpret their financial statements. In Q3 2010 AdSense generated $2.2 billion in revenues (Q1 figure was $2.09 billion). Their TAC (traffic acquisition costs) were about $1.8b for the quarter, while TAC as percentage of advertising revenues fell to 25.7%.
    Their operating margin remained unchanged at 35%.
    While their net profit margin is about 29%.

    When it comes to AdSesne I would say their operating margin is at least 60% with small players (99% of adsense webmasters), and at least 40% with big players (aol, ask etc...).
     
    hhsaus, Dec 11, 2010 IP
  3. Gaetano Marano

    Gaetano Marano Member

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    #3
    then, HUGE... TOO HUGE... :(

    .
     
    Gaetano Marano, Dec 11, 2010 IP
  4. temp2

    temp2 Well-Known Member

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    #4
    everything is theory
     
    temp2, Dec 11, 2010 IP
  5. instantit

    instantit Peon

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    #5
    No one knows and I doubts there is no specific margins as I believe the rates for each clicks may varied according to the keywords it targeted.
     
    instantit, Dec 11, 2010 IP
  6. dairyman

    dairyman Notable Member

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    #6
    Google retains the lion's share from the advertisers... What is the lion's share is anybody's guess :D
     
    dairyman, Dec 12, 2010 IP
  7. munnakv

    munnakv Active Member

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    #7
    Its official.

    https://www.google.com/adsense/account-settings
    Go here and scroll down. Under "Property Information", you have this:
     
    munnakv, Dec 12, 2010 IP
  8. theentry

    theentry Peon

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    #8
    You know they built it up from scratch so everybody has the opportunity to do the same :)
     
    theentry, Dec 13, 2010 IP
  9. Sxperm

    Sxperm Notable Member

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    #9
    I bet the most come from Adwords displaying on their website (Google.com) and their network over the publisher networks. Google itself got a billion daily searches around the globe. Imagine if only 1% do clicks on those ads so it should be around 10 million clicks estimated. How much those 10 million clicks daily could bring to Google? :)
     
    Sxperm, Dec 13, 2010 IP
  10. EvcRo

    EvcRo Notable Member

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    #10
    Google is saying bullshit

    they charge advertisers 2$ per click but they "smart price" the publishers for shitty reasons and give them 5 cents per click.

    How do you think they are able to flood the market with free vouchers ?!? They have to pay the content network clicks too so you can imagine their profit margin , probably overall around 80%.

    The big sharks make the rules, no news here.
     
    EvcRo, Dec 13, 2010 IP
  11. Gaetano Marano

    Gaetano Marano Member

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    #11
    .


    one possible way for Bing+Yahoo to compete with Google is to offer HALF the Google's prices to advertisers and TWICE the royalties to the sites that host their ads


    .
     
    Gaetano Marano, Dec 20, 2010 IP
  12. Imdadc

    Imdadc Peon

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    #12
    Ask Larry Page and Sergey Brin the owner of Google ;)
     
    Imdadc, Dec 20, 2010 IP
  13. mjewel

    mjewel Prominent Member

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    #13
    Wrong. Google pays the publisher 68% of what the advertiser is charged for the content network. When a site is "smart priced", the advertiser is charged less, which then results in a lower payout to the publisher, but it's still 68%.
     
    mjewel, Dec 20, 2010 IP
  14. Webgold

    Webgold Peon

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    #14
    1: Log in to your adsense account
    2: Go to account settings
    3: Scroll down to "Property Information" at the bottom

    AdSense for Content: ca-pub-yourid 68 % publisher revenue share
    AdSense for Search: partner-pub-yourid 51 % publisher revenue share

    I think the percentage is the same for everyone?
     
    Webgold, Dec 20, 2010 IP