Google Pays More, And Less, To Partners

    April 17, 2008
    WebProNews Staff

Members of Google’s AdSense content network, as well as certain other third-parties that drive revenue through Google’s ads, got more money in Q1 2008.

Forget about comScore’s scary click reports, Google obliterated estimates by industry analysts with its financials for the first quarter.

Inside the cheery summary Google released after market close, they break down where the money comes from and goes from a high-level view. Ubiquitous text ads found in and outside their partners who display AdSense units brought in a third of Google’s Q1 2008 revenue.

The pie, it seems, is getting bigger when it comes to sharing revenue with those partners. The dollars shared rose to $1.49 billion in the quarter, compared to $1.44 billion in Q4 2007.

However, the percentage changed ever so slightly. Google’s payout in Q4 2007 represented 30 percent of ad revenues. In Q1 2008, that dropped to 29 percent. Out of the extra $280 million Google took in, they handed out about $50 million of that to partner sites.

It looks to us that the continued quality focus Google engaged in last year to cull less relevant advertising had the effect they predicted: increased revenue as people clicked on more valuable and relevant ads being presented to them. So much for the collapse of Google.