Google AdSense: Three Facts & 1 Theory

[jeet_020]

Google Adsense: Three Facts & 1 Theory
Posted in Google, SEO by Elliott Back on April 26th, 2005.

Three facts:

Fact: Google needs to post significantly greater-than-average earnings to meet high market pricepoints. If it’s stock is going to exceed $250 anytime soon, earnings must be exceptional.

Fact: Google’s cut of Adsense revenue has been shown to vary unpredictably.

Fact: Most of Google’s income comes directly from Advertising.

One Theory:

By taking a percentage of Adsense revenue according to a specified random distribution, Google can infuse cash into its company at any time, without raising suspicion. It’s profits are exceptional, and no one will notice. Even more, if it takes a bigger cut from smaller customers, it can leverage the long tail effect of blog traffic to maximize profits. People that aren’t getting lots of traffic won’t expect to make much anyway.

Give your comment on this.

Thanks.

 

[RJ]

If it’s stock is going to exceed $250 anytime soon, earnings must be exceptional.

Their stock is already up to $412 a share (from its IPO price of ~$80). Who know when that's going to reach its peak.

 

[tzmartin]

I firmly believe your theory to be fact. I've also wondered if advertisers actually get their money back from Google when a publisher is banned from Adsense. This has been an topic of debate ending with comments like, "Of course they do, it's Google. Why would they keep the money?" ??? Hello people. Welcome to scr-u.

The number one priority for any public corporation is to increase shareholder value. Ask Enron or MCI.

IMHO

 

[allabout42]

Their stock is already up to $412 a share (from its IPO price of ~$80). Who know when that's going to reach its peak.

Wow $412 a share, who can afford to buy it at such a high price! :imho:

 

[tzmartin]

With higher valuations, come greater expectations, permutations or dissipation!

:hehe:

 

[Keral_Patel]

Will there be a downfall????

I doubt it. There cannot be. So it is a good investment for that amount also.