Saturday, April 10, 2010

How much Google Adsence pay (share) with publishers?

This is a heavily guarded secret that no one know except the people working for Google finance team. However I like Google that it is a company that promote transparency freedom to access information. You might be thinking I am contradicting myself. But this is the irony. You are on this page because you were looking for information how much Google pays to the publishers of the ad through AdSense program. Terms and conditions of the Adsense do not allow anyone to reveal this information so you would never know the real answer. However Google gives this information free of cost if you are willing to do little math.

Go to the Google Investor's relations' page or the SEC website download the annual report or the quarterly reports. These are public documents so there is nothing hidden or secret about these. I have collected following data from the reports. 
*Revenue from Network sites : Google charges the advertisers
*Traffic Acquisition Cost: Google pays to partner websites
 Note: Google has exclusive deals with some companies so they might be paid higher or lower than the average. But the calculations should give approximate idea to fulfill what you were looking for. Divide the second column by the first one and you get the answer.



You might notice that this over 73% in any quarter. There is fluctuation in cost to revenue curve but it can be assumed it is because of the differential in the payment to the partners with the exclusive deals. SEC filing does not differentiate between the small network partners and the bigger partners so one can assume that this ration would not have very wide standard deviation from the mean. 

This must give some relief that Google is one of the most generous company when comes to the partners revenue sharing. 



Report also says that they do not plan to change in the partner payment percentage in the foreseeable future so you can be sure to join them until you find someone better than them.

Google rocks!

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