Trouble in Google’s AdSense world?

When Google reported its earnings a couple of weeks ago, a lot of people who didn’t pay close attention hailed the results as a sign that the company had truly created a transcendent business model. I even heard people invoke the term “New Economy.” Funny, because when I start hearing that term, I figure trouble lies ahead.

In fact, if you parsed what Google said in its results, a lot of its profit increase came from cost savings and paring back its torrid hiring pace. Hardly the stuff of a “new economy.”

But I’m wondering now if there’s even more trouble brewing based on an email I received today about AdSense.

I have an AdSense account with Google, though I’m not currently using it. I was briefly running ads on a site I run called The Next Newsroom Project. Long story, but I was paying Ning $19.95 for the right to run my own ads. But AdSense wasn’t covering that, so I dropped the premium service with Ning, which then replaces my Google ads with Ning’s Google ads.

In any case, today I got the following email from Google:

“We understand that the recent economic turmoil has created a lot of uncertainty in the lives of AdSense publishers. During these difficult times, we’re continuing to invest in innovations that improve publisher monetization and advertiser value in the content network.

We’re focusing on further developing our product offerings and boosting ad performance for publishers. We recently announced advancements in AdSense for search and experiments to make ads more effective. We’re bringing DoubleClick technologies to AdSense publishers, and we’ll continue to launch new products and features. We’re also continuing to improve our offerings for AdWords advertisers, making it easier for them to target the Google content network. Features for advertisers, such as the new display ad builder, are designed to improve ad performance on AdSense publisher sites.

We’ll keep driving technological progress, but our best asset will always be our publisher partners. The strength of AdSense lies in the value of the content you bring to users and the quality of the sites you bring to advertisers. Our success is tied to yours. We look forward to partnering with you for the long term, and remain dedicated to helping you succeed.”

Sincerely,

Kim Scott
Director AdSense Online Sales & Operations

There’s no obvious indication that AdSense partners are in revolt or upset based on the content of this message. Still, I wonder why Google felt compelled to send it out? What are they seeing and hearing from AdSense partners that made them want to reassure them?

If you’re a Google AdSense partner, drop me a note or post a comment here and let me know if you’ve seen any kind of shift in the revenue your account is creating.

 

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  • Chris, I haven’t checked the latest financial results but Google has been steadily shifting its revenues to its own sites. When GOOG IPO’d it was a fifty/fifty split in total revs, now its about two-thirds from Google, which makes business sense because it doesn’t have to split revenues with publishers. In effect, it is in competition with its publisher network and it gets more bang for each buck it invests in AdWords as oppossed to AdSense.

  • Actually I did think about Ning and using its adsense. But this means I really have to have a lots of people joining it.

  • OK, so I’m starting to see the big picture here. Thanks for the post. Very interesting stuff. Thank you!

 
 
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