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~~* OMG *~~ I am in LOVE! ( with google tools ) (In: Google)
Google PR (In: Google)
Google (In: Pay Per Click - Google/Yahoo & Others)
How much Organic Traffic do you get from Google (In: General Search Engine Optimization)
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client
Joined: Dec 28, 2003
# Posts: 1
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Posted: 2003-Dec-28 08:39
I have thoroughly read this forum and are somewhat amused by the two positions people are taking with Google Adsense. I thought I would comment by adding my two cents 8-).
Some say that you should be thankful that Google is giving you any money; some money is better than nothing. Others are saying that maybe Google is not paying out enough of the advertising revenue.
I have done quite a bit of research with PPC search engines and even experimented with Google Adsense with high valued keywords. I see that the revenue you make is small compared to what the advertiser is paying. Maybe Google keeps revenue sharing rates close to their chest so that no one has tangle proof to complain.
Google is only doing a small part and taking a much larger cut of the pie. An individual web owner works night and day to build a great web site with much content and then goes about attracting thousands of visitors; what a lot of work. Google just offers a means to get paid for the content 8-).
Predictions for next year are that the advertising revenue will just explode. On Overture and Google advertisers are paying top dollar and when there is competition advertisers will pay more and more. Will more of this revenue filter down to the content providers?
Now let us go back to my initial comments. I would draw the analogy of a person (Google) feeding crumbs to the pigeons and the pigeons are more than only happy to receive whatever falls before them.
For example, say you currently got paid 2% for the hard work you do building a “content based web site”. If you then got a fairer revenue split of say 40 to 50%, think of how much more you would make. Some of you could give up your day job and work full time on your site. Everyone would win – you would get paid better, Google would get more content driven clicks, and the advertisers would be pleased!
I know that Google Adsense has only been going since July, but until there is genuine competition or a revolt from the hard working peasants I don’t think there will be much change. Where I come from the smaller businesses are the backbone of the economy, because there are many of them, they employ more people, also they are closer to the end-user and therefore produce better relationships. Transfer that to PPC traffic and the visitors are more prepared to take recommendations and visit the advertisers.
On reading this forum I visited another PPC search engine that pays for results. From their FAQS it appears they have good potential for us peasants. FastClick.com pays up to 65% of the revenue. It is understandable that they may not have respect and the advertiser dollar like Google but if you got say 50% of the revenue for your efforts you would be far better off than with Google.
I have written this to generate discussions and maybe through this discussion someone at Google might read and rethink commission structures. If you forget the Internet and think of the real world, I would expect a peasant would get paid a fairer revenue split for their efforts.
Please don’t get me wrong. I am not bashing Google, in fact I think that Google is one of the best Search Engines; They are very innovative and quick to respond to the market! I would have to comment though, that with fame maybe greed may follow.
Web designer and marketer.
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thor
Joined: Nov 20, 2003
# Posts: 3
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Posted: 2004-Jan-03 18:38
I think you are drastically misinformed about what adsense pays.
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totalnoob
Joined: Eons Ago
# Posts: 8
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Posted: 2004-Jan-04 18:53
What is the range of adsense's payout?
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europeforvisitors
Joined: May 23, 2002
# Posts: 23
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Posted: 2004-Jan-14 03:06
>>What is the range of adsense's payout?<<
Do you mean in percentage rerms? Google isn't saying, and for good reason: Revealing the payout formula would make it easy for future competitors to lure away individual publishers with better offers (as affiliate programs sometimes do).
I suspect the payout formula isn't as simple as a traditional 50-50 or 60-40 split. That approach made sense when the early banner-ad networks got started, because they were competing against do-it-yourself or hire-a-rep-firm ad sales. Their pitch was something like: "Instead of paying X percent of your revenues for ad sales and serving, let us take the risk and the effort off your hands for a share of the proceeds." With Google, the situation is quite different, because Google isn't pitching another way of doing what you're already doing (i.e., selling and serving banner or skyscraper ads). Instead, Google is pitching something publishers haven't had before: the opportunity to run highly targeted contextual ads. In most cases, there's no need for a publisher to give up what he's already doing to try AdSense. Instead, the publisher can just pop the AdSense code onto a site and see if the revenues are worthwhile. Success can be measured almost instantly by looking at the daily stats.
Many of us have found that AdSense pays extremely well. And for most of us, I suspect that AdSense (at whatever the revenue split may be) is far, far more profitable than FastClick or Burst or the other banner networks are at a 60-40 or 65-35 or 50-50 split. I'm currently making more per day from AdSense than I used to earn from a banner-ad network in a really good week.
As time goes by and more competitors enter the fray, Google may have to up the publisher's revenue share (whatever that may be), at least for publishers who generate significant revenues. But I don't think Google will ever reveal the details of its compensation algorithm--that would be foolish.
BTW, one of the great things about AdSense is the way it coexists peacefully (and profitably) with other revenue streams such as affiliate sales. For a content site, AdSense is especially useful for monetizing pages on subtopics that didn't generate revenue directly in the past. Example: If I publish a site about wines and happen to run an article on wine glasses or corkscrews, that article can display AdSense ads for wine glasses or wine-related accessories in addition to my usual affiliate link for wine-by-the-case.com.
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Silv
Joined: Aug 10, 1999
# Posts: 1668
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Posted: 2004-Jan-15 08:38
Honestly, the percentage that AdSense is paying me doesn't really matter to me. While I suppose hearing a larger percentage from a competitor would definitely catch my interest, it's not only the % that makes me choose an ad network. The technology, the policies, payout practices, and the way their media appears all have an impact.
Most of all, however, I worry about the effective CPM that the program ends up paying. I don't care if I'm getting 20% of the clickthrough, if I'm making a better CPM than other revenue sources - I'm happy.
If a competitor with similar technology, and/or better policies & media types made me an offer I'd certainly test them out, but it would be the effective CPM that I pay attention to, not the % they claim to pay.
Right now AdSense is about as good as it gets as far as a combination of technolgy, reasonable policies and acceptable CPM. As publishers, we can always hope that someone gives them a run for their money; competition is great for the market.
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