What Google Inc. (GOOG) Adsense Revenue Drop Highlights For Publishers ?

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

iPhone 12 Plagued With Serious Problems: Should You Buy It, Still?

A serious problem with Apple iPhone 12, identified recently, is good enough to give a second thought...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Google Inc. (NASDAQ:GOOG) is apparently facing some though time with constant declining Adsense growth, and the scenario is also discouraging many premium publishers, including NYTimes, that have been relying heavily on the network for many years now. AdSense accounted for 29% of Google’s $43.7 billion dollar revenue in 2012. While there has been a growth in AdWords by 22%, AdSense remains flatlined. The performance of Adsense further deteriorated when contribution plunged to 21.9% of $59.83 billion revenue in 2013. Many are mystified in their thoughts on the direction of Google AdSense and what this means for the future of the ad network.

Quarters Show AdSense Taking The Plunge

Historically, Google’s AdWords and AdSense have always mirrored each others growth, however numbers in Google’s last quarters have shown that AdSense’s growth is taking a steep plunge. The decline is being attributed to Google’s advertising policy changes, according to Google’s CFO Patrick Pichette. With signs of three consecutive quarters indicating declines in Google’s AdSense revenues, it makes a tough call for the future of the ad network.

Google Revenue vs Adsense

Mobile Ads Slashing Clicks

One of those very specific changes, is one which requires customers to buy mobile ads, even if they don’t monetize on that specific channel. Google has also reported a significant drop in the number of clicks on its ads, with the introduction of mobile ads acting as the catalyst to this demise; as mobile ads only produce a fraction of the revenue of those of ads on desktops.

Advertisements

AdSense An Accessory To Spam Sites

AdSense has been criticised for its part in aiding sites in its network with stolen articles and spam content, with allowing them to profit while sending them even more traffic; naming Google and its networks as an accessory in this activity.

The decline in AdSense usage is also speaking to Google’s lacking in its capabilities, through their indexing algorithm, to block traffic being sent to scrapper and spam sites. Their inability to distinguish legitimate from spam websites, spoke to a flaw in their algorithm.

Google responded with its “Panda” update, which cracked down on the low quality content found on sites and its “Penguin” update crunched lower quality sites, causing many of them to lose the traffic that drove them.

Who’s Really Benefiting

From the looks of it, publishers of lower quality websites are taking the hit, as higher quality publishers are benefiting from increased traffic through a better “quality drive” through search. Giving these sites a better chance to increase their AdSense revenue. How we see it, food taken off one man’s table and being put on another; tribulations of life?

In the Google network ecosystem, we’ve seen it all.  As there will only continue to be a supply for the increased demand, and as far as we’re concerned, with more ad space now becoming available with the removal of lower quality site fulfillment, the demand for that opened space will only continue to flourish, as more and more struggle to get even a mere acceptance into the network.

Advertisements

Another uphill battle we see for smaller publishers is that account levels are taking precedence. As under Google’s DoubleClick brand, it is mainly big brand advertising and Ad agencies that are gaining the path into the AdSense network, which appears to have a track record of only being given to those of the highest level of the quality scale.

Network Crash vs. Network Pruning

We see these numbers being attributed to the pruning of the network to include higher quality sites, thus higher quality ads. We are also expecting to see search quality updates similar to “Panda” and “Penguin” in the future, where publishers will also see a drop off in traffic at certain points, which will only serve to strengthen the quality of the user experience.

Man is no longer living by AdSense alone

What we have seen is that more and more advertisers and small publishers are now flocking to ad networks that quite simply pay more. With a decline in revenue in sales through AdSense, this translates to less payouts to users in its balance between profitability and meeting supply and demand.

Smaller publishers are now looking to spread their wings to other outlets, as diversification is becoming a key component in the game plans of many having the intentions of increasing the number of income streams they live by.

While there is no direct competitor of Google Adsense yet, there are few effective alternatives that could be seen as the other revenue junctions for publishers. Affiliate marketing, Chitika, Adversal, Cliksor are the few that are largely adopted by publishers. However, what would be more interesting to Facebook Ad Network that is making news for some time now.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Backed By First-Time Shoppers, Flipkart And Amazon Dominated Festive Online Sales in India

It seems like Flipkart and Amazon squeezed the most out of the month-long festive season in India...

Amazon Gets Slapped With Penalty As GOI Prepares To Tighten The Noose On Ecommerce Players!

In a recent move, the Indian Government slapped Amazon on its wrist for not mentioning the country of origin detail for products...

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once against proved they are the true arch-nemesis of modern-day user-privacy!

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This