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The Massive Mystery In Google's Finances

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Re: The Massive Mystery In Google's Finances

#11
The 'black box' of AdSense payout rates has long given Google has a lot of discretion, checked only by publishers' other alternatives (credible threat of switching) and Google's strategic goals.

Perhaps the next-best alternatives to fill the same space aren't paying as much. Perhaps Google was strategically overpaying AdSense partners for a while, to achieve critical mass (of advertisers and publishers) and forestall the development of competitive networks.

Now, having achieved an enduring dominance in this two-sided returns-to-scale market, they're dialing back their AdSense payments. Only the emergence of a strong alternative would prompt them to continue paying the same premium that was offered during the capture phase.

(And even if Google thought a competitor of similar scale was likely to arrive – eg Facebook – they might want to continue charging a lot for their market-making, building a large warchest, until the competitor arrives. Then, crush the upstart by dynamically charging very little, making AdSense extra-attractive for exactly those advertisers/publishers of greatest importance against the upstart. Similar to how a hundred years ago, Standard Oil was accused of using targeted rate changes to undermine upstart competitors.)

Maybe ad-blindness (if not outright ad-blocking) is spreading more widely among the masses, especially in AdSense scenarios. Maybe AdSense was only ever meant as a moat to protect AdWords from possible network-of-ads competitors.

Re: The Massive Mystery In Google's Finances

#13
We are AdSense premium partners and have seen our revenues nearly cut in half while our page views remained constant. I can safely say this is due to the fact that a lot of our visitors use ad block plugins. I can't blame them - some ad formats are annoying enough to justify ad blockers. Unfortunately Google does not offer a way for us to receive ads on the server level and integrate them into the page content, bypassing the ad blockers - like Google does it on his own properties.

Re: The Massive Mystery In Google's Finances

#15
post #9

Some combination of: 1) Panda, which redirected hundreds of millions in revenue from some content farms to other parties (including, likely, the ether) which do not show up on Google's books 2) Google is being increasingly aggressive about monetizing the Google SERPS. More ads in more places with more prominent billing. Other sites on the Internet have not been aggressively up-monetizing principally because they have…

If Google ever does end up facing an anti-trust trial, your second point will likely form part of the case against them. This could be considered direct evidence that Google are using their dominance in search to favor their own properties over others.

Re: The Massive Mystery In Google's Finances

#16
post #13

We are AdSense premium partners and have seen our revenues nearly cut in half while our page views remained constant. I can safely say this is due to the fact that a lot of our visitors use ad block plugins. I can't blame them - some ad formats are annoying enough to justify ad blockers. Unfortunately Google does not offer a way for us to receive ads on the server level and integrate them into the page content, bypas…

We too are getting some significant revenue from Adsense. The income has been stable for last 2 years. It dropped by around half as well in last 3 months. It is worrying. I am not sure if ad blocks are the cause when the drop has been quite sudden.

Re: The Massive Mystery In Google's Finances

#17
post #9

Some combination of: 1) Panda, which redirected hundreds of millions in revenue from some content farms to other parties (including, likely, the ether) which do not show up on Google's books 2) Google is being increasingly aggressive about monetizing the Google SERPS. More ads in more places with more prominent billing. Other sites on the Internet have not been aggressively up-monetizing principally because they have…

What is Panda?

Re: The Massive Mystery In Google's Finances

#18
post #15
post #9

Some combination of: 1) Panda, which redirected hundreds of millions in revenue from some content farms to other parties (including, likely, the ether) which do not show up on Google's books 2) Google is being increasingly aggressive about monetizing the Google SERPS. More ads in more places with more prominent billing. Other sites on the Internet have not been aggressively up-monetizing principally because they have…

If Google ever does end up facing an anti-trust trial, your second point will likely form part of the case against them. This could be considered direct evidence that Google are using their dominance in search to favor their own properties over others.

A few years ago they had an ad for Blogger, which was not actually an AdWords ad, shown if a search request contained a word "blog". It was placed above AdWords.

Re: The Massive Mystery In Google's Finances

#19
post #17
post #9

Some combination of: 1) Panda, which redirected hundreds of millions in revenue from some content farms to other parties (including, likely, the ether) which do not show up on Google's books 2) Google is being increasingly aggressive about monetizing the Google SERPS. More ads in more places with more prominent billing. Other sites on the Internet have not been aggressively up-monetizing principally because they have…

What is Panda?

An update of the Google algorithm earlier this year. It changed, in some cases quite radically, the search results.

Re: The Massive Mystery In Google's Finances

#20
post #17
post #9

Some combination of: 1) Panda, which redirected hundreds of millions in revenue from some content farms to other parties (including, likely, the ether) which do not show up on Google's books 2) Google is being increasingly aggressive about monetizing the Google SERPS. More ads in more places with more prominent billing. Other sites on the Internet have not been aggressively up-monetizing principally because they have…

What is Panda?

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