Tuesday 19 July 2011

How Google Calculates Publisher Revenue

Example
of Bid Amount on the Search Network.



.
How AdSense Payout to Publisher Is Determined

All of the bids shown in previous posts are for the "Google Search Network".

AdWords
Advertiser
Higher
Bid $
ON THE SEARCH NETWORK

However,
Payout to AdSense publishers is based upon
"Content Network Bids"
on the "Google Content Network".
Bids on the "Content Network" are typically FAR LESS than half as much as for the Search Network.
Advertisers pay less for clicks from non-converting webpage content ads.

Estimated
EQUIVALENT

AdWords
Advertiser
Lower
Bid $
ON THE CONTENT NETWORK

Class A
Website with
High CTR

High Conversion Rate
gets paid

High AdSense EPC
70 %

Class B
Website with
Med. CTR

Med. Conversion Rate
gets paid

Medium AdSense EPC
50 %

Class C
Website with
Low CTR

Low Conversion Rate
gets paid

Low AdSense EPC
10 %

$ 10.00

$ 1.00

70 ¢

50 ¢

10 ¢

$ 1.00

$ 0.10

7 ¢

5 ¢

1 ¢

Google retains the entire Bid $ on the "Search Network.”

High quality publishers get most of the advertiser bid $.

If the high CTR publisher provides high volume, is he rewarded with a higher EPC? I guess yes.

Money is Split.

Google keeps most of the ad $ bid from low quality publishers. Why should they pay them for not performing as well as others and sometimes not performing at all?

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