Today, in the spirit of greater transparency with AdSense publishers,
we’re sharing the revenue shares for our two main AdSense products —
AdSense for content and AdSense for search.

As you may already know, AdSense is comprised of several products. The
most popular are AdSense for content, which allows publishers to
generate revenue from ads placed alongside web content, and AdSense for
search, which allows publishers to place a custom Google search engine
on their site and generate revenue from ads shown next to search
results. Since AdSense for content and AdSense for search offer
publishers different services, the revenue shared with publishers
differs for each of these products.

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.

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. Revenue shares for these products can
vary from product to product since our costs in building and
maintaining these products can vary significantly. Additionally, the
revenue shares for AdSense for content and AdSense for search also can
vary for major online publishers with whom we negotiate individual
contracts.

Of course, we can’t guarantee that the revenue share will never change
(our costs may change significantly, for example), but we don’t have
any current plans to do so for any AdSense product. Over the next few
months we’ll begin showing the revenue shares for AdSense for content
and AdSense for search right in the AdSense interface.

We hope this additional transparency helps you gain more insight into
your business partnership with Google. We believe our revenue share is
very competitive, and the vast number of advertisers who compete to
appear on AdSense sites helps to ensure that you’re earning the most
from every ad impression. Additionally, when considering different
monetization options, we encourage you to focus on the total revenue
generated from your site, rather than just revenue share, which can be
misleading. 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.

We’re continually working on helping you improve the returns from your
site while giving you more control and insight into AdSense. For
example, we continue to improve our technology so that we can deliver
even better matched ads and attract even more advertisers to your
websites. Additionally, we recently began providing more granular ways
to find and review the ads on your site, as well as the ability to
filter more ads by category. We’re also focused on finding other ways
to make AdSense better for you. As you may remember, last December, we
asked for your ideas and feedback on how we can make AdSense better. We
received more than 600 suggestions and 35,000 votes, and we’ve been
reviewing them all.

Keep an eye on this blog for updates about the new features we’re
building to help you maximize your advertising revenues.

Posted by Neal Mohan, Vice President, Product Management

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Posted By Inside AdSense Team to Inside AdSense at 5/24/2010 07:00:00 AM

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