Google has decided to open its doors and let us look inside its AdSense program. On its blog site it states it is doing this in the name of transparency and to make public how the program works. On its blog, Google shows how revenues are generated and how the wealth is spread between itself and the sites that host AdSense advertisements. Since 2003, Google has protected this information and we in the AdSense world were left on our own to try and figure out how the program functioned behind the scenes. On its blog site, Google states:

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.

There is more information on the Google blog site which further explains the in and outs and how in the future, the revenue formula could be changed.  I would just like to know how Google determines which ads are placed on a site? I know on my site revenue is like a roller coast, with lows and highs, which I personally have never been able to figure out.

Do you have a clue on how Google decides which ads go where and why a particular ads generates a higher revenue return than others? Signed, curious. LOL

Comments welcome.

Source – Google blog

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