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Adsense Earnings Down Sharply 2009, Google Cuts Payout to Publishers

Companies / Google Apr 22, 2009 - 05:53 PM GMT

By: Nadeem_Walayat

Companies

Many website publishers across the internet as illustrated by many articles and several hundred forum postings are experiencing a cut in adsense earnings of between 50% and 75% both as a consquence of cuts in advertising spend in the wake of the global recession and Googles attempts to bolster its own bottom line at the expense of publishers.


The actual total payouts for adsense for reported quarters are 2008 Q3 $1.33 billion, 2008 Q4 $1.29 billion, 2009 Q1 $1.23 billion illustrate a declining trend in adsense payouts.

The cuts in revenues most notable take the form of less ads served i.e. lower recorded impressions despite no fall off in web site traffic as well as a cut in the earnings per click, therefore resulting in a severe fall in earnings of as much as 75% as compared to the levels barely 6 months ago which brings into question the viability of many sites that through google had managed to deliver quality content for free for many years.

The fall off in revenues also conincides with Googles implementation of User behavioural Interest targetting as of Early April, that may be a contributoary factor in the sharp drop in revenues.

If you are a website publisher then take part in our poll, results to be analysed to this article's comments section below on an ongoing basis.

How Far Have Your Adsense Earnings Fallen in % Terms Compared to 6 months ago ?
  • More than 75%
  • 50% to 75%
  • 25% to 50%
  • 10% to 25%
  • About the Same
  • Increase 10% to 25%
  • Increase more than 25%
Click Here to Vote / Results to Date

 

The sharp fall in earnigns threatens an exodus of publishers from Googles adsense programe with possible alternative options available of

  • Direct contact with advertisers, therefore avoiding the middle man.
  • Alternative Advertising networks
  • Paid for subscription services for premium content
  • Rely on adsense as a secondary source of revenue rather than primary source.

Offcourse the recession would still result in less earnings for publishers as a whole, but seeking diversified income sources will likely help publishers ride out the recession and emerge with a more sustainable business model on the otherside that is not reliant on a single corporate giant for their surival.

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By Nadeem Walayat
http://www.marketoracle.co.uk

Copyright © 2005-09 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 250 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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