Google Recorded a record $ 9 one billion in revenue last quarter, Pleasing Wall Street, Which HAD-been jittery on the search and advertising giant After it didn 't Meet Their expectations for the first hand of the Year.
Order as Silicon Valley Watcher 's Tom Foremski Pointed out, There ' s an oddness in Google 's results.
The growth in revenue for sites run Google ads That (the AdSense program) INcreased 20% from the second quarter results in 2010 and 2% last quarter sincere. Usually the revenue from ads Those grow at about the Same rate as revenue from the ads Google gets from Its Own properties, Such as icts search engine.
Purpose revenue from ads on Google 's own sites Jumped 39% Since 2010 the Same quarter and 6% last quarter sincere.
That 's odd, Foremski says.
This huge disparity Between the Growth Rates of Google sites and partner sites IS Without precedent for Most Of Its History. For example, in 2010, Google sites never exceeded are the growth rate of partner sites:
- In Q1 Google Sites Grew 20% and 24% partner sites Grew
- In Q2 Google Sites Grew 23% and 23% partner sites Grew
- In Q3 Google Sites Grew 22% and 22% partner sites Grew
- In Q4 Grew 22% Google sites and partner sites Grew 24%
Yet in Q1 2011 Google sites 'Suddenly Jumped growth and Without Any explanation: Google Sites Grew 32% and 19% partner sites Grew.
Google Gave no explanation in STI earnings call yesterday, and no one seemed particularly Interested, except Foremski.
UPDATE: Google 's head of webspam and de facto disputes Foremski Spokesman Matt Cutts ' s Contention That Google hasn 't-been forthcoming about AdSense Panda eating, in a comment on Hacker News.
/ UPDATE
Purpose There May Be a one word explanation for Why revenue from millions of websites Slowed and Google 's own pink - Panda.
That 's the code name for Google ' s recent revamping of STIs search algorithms to weed out content factories and low-quality sites from STI top rankings (Not Without Much controversy). Content mass Manufacturers, Such as Demand Media and eHow, as well as less well Known operations Rely on Google Adsense ads to make money off Their webpages. That 's Because AdSense Is Easy to drop in and Can Be Used to fill advertising slots That Can ' t Be High Paying filled with ads.
So is it possible, That we are now seeing Google 's anti-spam web team accidentally Punishing the AdSense revenues Programs by Promoting Sites That Don ' t Rely Heavily on AdSense and demoting Many do That?
The theory doesn 't explain the giant jump in Google ' s own sites returned on Its Own - since I don 't see how Panda ' s exchange Would drive more people to click on the search ads INSTEAD.
But It 's possible, That ' sa small contribution and Google ad revenues on Its Own sites are just getting more benefit from better algorithms Either, better rates on ads in YouTube or Even rising mobile ad revenue.
UPDATE: Reader JN adds via e-mail:
What you 're Seeing is cutting out the middleman Google. There 's No Reason for Google search to send users to made-for-AdSense pages, Where Google shares revenue with the external site, When Can Google get the ad revenue from year one
the search result page.
From Google 's perspective, Adsense sites are only Worthwhile If They Have Their Own organic traffic. If They Get Their search traffic from Google, They 're competition for Google ' s own ads. It 's Malthus in Google ' s interest-rate down to sites with ads in Google 's own search results.
This reasoning May, over time, cut off the air supply of the "content farm 'industrie. THEY Need Google, Google No Longer Needs aim em.
Advertisers with effective metrics Generally That has seen click-through from a search page, When users are looking for something, IS far more Likely to result in a dirty Than click on a year ad we have third-party page, the Where Is An Ad interruption.
Advertisers turn off the Smart When buying Google Adsense ads.
This is party Why Adsense ads are Generally Rather low-rent from Advertisers. That we measure, and find That 36% of AdSense Advertisers, by domain name, are What we call "bottom feeders ", with no valid business behind the web site.
All This Is Well Known in the SEO community. If anything, the surprise in the quarterly results Adsense Is That are back up at all.
It 's just a theory, and would love to hear Your Thoughts about whether the Panda IS munching on Adsense. I Asked Google 's press office if There Was Someone to talk with about this, aim haven ' t Heard back.
Photo: A panda eating bamboo (Amy Gwen)
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