If you are running Google AdSense in all its flavors (for content, for search, for feeds, for mobile), you might have wondered how much money Google is earning from it?
Google reports that for AdSense for Content, it gets 32% which covers for Google’s costs for its continued investment in AdSense. That means, all AdSense publishers earns 68% of ad revenue being paid by advertisers through Adwords to Google, which in turn serves those ads to our sites.
Google’s earnings is also used to payoff the cost that Google incur in building products and features that enables AdWords advertisers to serve ads on our sites. And guess what, this deal has been going on since the launch of AdSense in 2003.
As for AdSense for Search, if you’re running Google’s Custom Search Engine on your sites, the revenue share is 51% for you and 49% for Google. This has been the revenue sharing scheme since 2005 when Google AdSense for Search was launched.
Here is an example of how the split works in actual dollar amounts:

For Each $100 of your earnings in Adsense for Content, Google’s Share made $47.05 thus the total spend by the advertiser was $147.05.

For Each $100 of your earnings in Adsense for Search, Google’s Share made $96.08 thus the total spend by the advertiser was $196.08.

Here are the formulas to calculate Google’s Cut and Advertiser’s spend:

Adsense for Content:
Google’s Cut = Your Earnings x 8 / 17
Advertiser’s Spend = Your Earnings x 25 / 17

Adsense for Search:
Google’s Cut = Your Earnings x 49 / 51
Advertiser’s Spend = Your Earnings x 100 / 51

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Google recently announced that it has just made it possible for Adsense publishers who are participating in their AdSense for Mobile applications to use third-party mediators. This means that if you’re running AdSense for Mobile on your website or blog, you can now use multiple ad networks simultaneously allowing you to reach a greater pool of advertisers. This will also help you focus more time on building your applications and content rather than on managing your ad inventory.

To use mediators, your mobile apps must fulfill the following conditions stipulated by Google:

• Using the latest version of the AdSense for Mobile Applications SDK.
• Abiding by the AdSense for mobile applications terms and program policies.
• Agreeing to Google’s privacy policy.

Google hopes that this will bring in more revenues for AdSense publishers even if they use other third-party ad networks.

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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.
By Neal Mohan, Vice President, Product Management

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The key to getting the most out of Adsense on a website or blog that is already up and running revolves around three things:

1. Integrating Adsense Ad units properly into the structure of your pages on your website or blog.

2. Optimizing the ads for your current traffic through testing and monitoring.

3. Bringing more traffic to your now optimized pages on your website or blog.

How you integrate Adsense into your website or blog is the single largest determining factor of your websites potential for generating income. With that in mind, there are 2 common mistakes made by adsense publishers:

1. Chase clicks instead on focusing on creating valuable content. Pushing ads at every visitor might force a higher click through rate for a time but if you undermine your websites value it will eventually fall from grace.

2. Don’t built a website around a specific topic that they are genuinely interested in and actually know about with unique content (at the worst buy a made for Adsense website on ebay for 0.99$), which offers value added information to your target market.

Although, Google Adsense is perhaps the easiest way to attract advertisers from across the globe to your blog or website, concentrating on clicks rather than your website will either cause its demise or prevents your website or blog from fully capitalize your Adsense potential and limits your earnings.

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Certainly Google is unaware that you are testing your website and it might even penalize your account for “click-fraud” since the IP requesting ads remains same. And if in the worst-case scenario, you might accidently click on your own ads. And these extra “ad impressions” will also change your CTR.

One simple way to avoid this serious problem is to remove the Adsense code altogether from your page before testing. But this may not be the best solution as your Google Ads are an important part of your layout. So here are a few simple but effective tips to avoid problems:

1. Instead of using Adsense code, add a static graphic (jpg image) with the same dimensions as your adsense code. (Google itself provides static images of various ad formats.).

2. Modify the value of google publisher ID to something like “pub-googleIamTesting”.

3. Add another line to Google Adsense code google_adtest = “on” (Don’t forget the semicolon).

4. Though there is no official comment, it is safer to remove the google_ad_channel variable.

If unsure, contact Google Adsense Team with your query. Google Adsense staff are very quick to respond.

Remember, Google AdSense policies require that websites displaying Google ads be active and fully developed and not under construction. When your site is complete and active, you may add the Adsense ad code.

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We have summarized below the steps you take when setting up a website or blog and start making money from it, commonly referred to as online marketing or e-commerce. The first two steps are relatively easy.

Step three is moderately difficult. However, there are volumes of books written covering website design. For beginners, I recommend you take the path of least resistance and pick up a book at your local bookstore.

Steps four through six are easy to start doing, but require a substantial learning curve to do well.

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Adsense For Content

This is the most common used and exists in the form of different shaped ads which you will have no doubt seen scattered over the internet. These ads are relevant to the content of your website and you earn revenue every time one of your users clicks on them. For more read different ad formats.

Adsense For Search

This product allows you to place a Google search box on your website, allowing your visitors to search either your website (if your pages are indexed) or Google’s search engine database. Each search by your users will generate ads related to that search term and you earn revenue for every ad click by your users.

Referrals

The Referrals product is a little different as you are not earning revenue through contextually matching ads on a per click basis but are recommending useful products and / or services to your users. When one of you visitors subscribes to the product or service you receive a commission. Referrals are much more like affiliate programs and they currently include Google Adsense Subscription, Google Adwords Subscription, Firefox Download and the Picasa Software Application.

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 The Standard Adsense Ad Formats

Horizontal Ad Formats:
1. 728 x 90: Leaderboard
2. 468 x 60: Banner
3. 234 x 60: Half Banner

Vertical Ad Formats:
4. 120 x 600: Skyscraper
5. 120 x 140: Vertical Banner

Square Ad Formats:
6. 125 x 125: Button
7. 300 x 250: Medium Rectangle
8. 250 x 250: Square
9. 336 x 280: Large Rectangle
10. 180 x 150: Small Rectangle

Read about Adsense Ad Format Optimization.

The Adsense Adlinks Formats

Horizontal Adlink Formats:
1. 728 x 15
2. 468 x 15

Square Adlink Formats:
3. 200 x 90
4. 180 x 90
5. 160 x 90
6. 120 x 90

Read about Adsense Adlink Optimization.

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What you don’t want is a webpage that appears like a collection of Adsense Ads. Such a site is worthless and you will struggle to get any traffic unless you enter the world of spamming or decide to pay for web traffic – both offer only diminishing returns. For a visitor to enter your website or blog and click on your ad means that they must want to go forward from your website to another website. If your page is of no use to them, they will hit the back button and return to the search engine that they came from to find another site that will answer their query more effectively and effectively.

Entice your visitors into your site and then cleverly place ads at points where they will be focusing and be relevant for your visitors.

So how many is not too many? As a general rule I’d start with more ad units than less, set up channels so you can monitor how each performs and then make changes accordingly. If you’re building your website from scratch try and build it with enough flexibility to allow you to test different variations.

1. A more aggressive tactic is to include two large rectangles together either side by side or on top of each other. If you’re getting a fair amount of traffic this will really improve your CTR and is worth trying. Just keep an eye on your web stats to check it doesn’t undermine your visitor’s experience which will be highlighted to you through a decreasing traffic rate.
2. The large rectangle inside the content and a skyscraper (preferrably the 160 x 600) in your left navigation. The right navigation converts much lower.
3. A large rectangle towards the top of your content and another at the bottom. This gives your traffic two ways out from inside the same page.

Three Units – If you can fit three in you can now mix and match, for example:

1. Two rectangles inside the content and one skyscraper in the navigation.
2. One rectangle inside the content and if you have a right and left navigation, one skyscraper in each of these (I know of websites this has worked well on)
3. One rectangle inside the content, one skyscraper in your navigation and one leaderboard at the header of your page.
4. Three rectangles inside the content – this can work very well if you have a lot going on inside the page and it is long enough to absorb the three ads allowing them to be placed far enough away from each other.

Including an Adlink Unit

Your one Adlink unit can virtually always be included as they can slot in to the smallest of places. Many publishers still neglect Adlinks as they have wrongly convinced themselves that the requirement to click on a keyword phrase before they can click on an ad is requiring too much from a visitor.

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