Google discloses Adsense Revenue Share Formula

In the wake of increasing competition by hundreds of online affiliate advertising sources, Google is beginning to feel the pain of lost revenue. For years professional bloggers have complained that they felt hindered by not knowing how to calculate projected ad revenue as it has been a closely guarded Google secret.

Today, Google published the formula in an effort to retain what ad publishers it has left and to win back those who have abandoned them for other providers. As a result, the competition will only grow larger now that everyone can mathematically compile their projected earnings.

Unfortunately the results weren’t very pleasing. Google claims to pay 68% of all ad revenue to the publisher. While seemingly high, it falls drastically short in CTR compared to individual Affiliate Marketing. Affiliate marketing is the new source of increased ad earnings for many professional publishers. It is most prefferred as it allows the publisher to pick and choose what ads to publish based on content rellevancy and commission earnings.

Adsense for Content

Google’s Cut = Your Earnings x 8 / 17

Advertiser’s Spend = Your Earnings x 25 / 17

Adsense for Search

Google’s Cut = Your Earnings x 49 / 51

Advertiser’s Spend = Your Earnings x 100 / 51

Google Says – 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 – including the development of new technologies, products and features that help maximize the earnings you generate from these ads. It also reflects the costs we incur in building products and features that enable our AdWords advertisers to serve ads on our AdSense partner sites. Since launching AdSense for content in 2003, this revenue share has never changed.

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. The AdSense for search revenue share has remained the same since 2005, when we increased it.

Professional publishers are waiting with baited breath to see how long it will take Google to manipulate the percentage in it’s favor in the wake of increased or decreased competition. Jonathan Hawfield of Texas Matrix states “Although Adsense was once the king of ad revenue, it is wiser to maintain solid affiliate programs that offer better tracking data and higher conversion rates.”

Further resources and information for internet professionals can be found at Texas Matrix. Link exchanges and article submissions are welcomed.

Jonathan Hawfield is a Cybersecurity administrator for Texas Matrix. http://www.texasmatrix.com