Friday, July 23, 2010

Revenue Shares for AdSense Content and Search

Google decided to sharing the revenue shares for two main AdSense products i.e. AdSense for content and AdSense for search. Google’s advertising is a highly successful program of Google. The biggest share of its ad revenue comes from its search engine, but a significant part also comes from the ads it serves on third-party sites. The AdSense program has been doing great so far, but Google thought it was time for a little transparency concerning how much of the advertisers’ money it keeps for itself. 


Neal Mohan, Vice President, Product Management at Google, wrote,“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. The remaining portion that we keep reflects Google's costs for our continued investment in AdSense,”.

“We pay our AdSense for search partners a 51% revenue share, worldwide, for the search ads that appear through their implementations. As with AdSense for content, the proportion of revenue that we keep reflects our costs, including the significant expense, research and development involved in building and enhancing our core search and AdWords technologies,”.

AdSense for content publishers serves contextual ads on third-party sites. Its advertising network is the largest in the world and its ease of use and mostly accurate algorithms, matching the right ads with the right sites, made it popular, especially with smaller publishers. Since launching the network in 2003, the rates have remained the same, 68 percent of the ad revenue goes to the publisher and Google keeps the rest.

AdSense for search serves search ads alongside queries on the customized Google search tools deployed by various sites. For these, the rates are smaller for the publishers as, Google says, it costs more to operate them. In truth, with AdSense for search, the company is providing an additional service, the search engine, besides serving the ads so that weighed on its decision. The rate has been at 51/49 since 2005, when the company increased it. For the immediate future, Google states it’s not likely it will modify any of the rates. 


According to Googe, "We also offer additional AdSense products including AdSense for mobile applications, AdSense for feeds, and AdSense for games. We aren’t disclosing the revenue shares for these products at this time because they’re quickly evolving, and we're still learning about the costs associated with supporting them." 

With this new update, for example, you would receive $68 with AdSense for content for $100 worth of advertising that appeared on your site. If another ad network offers an 80% revenue share, but is only able to collect $50 from ads served on your site, you would earn $40. In this case, a higher revenue share wouldn’t make up for the lower revenue yield of the other ad network.

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