Google Adsense: Three Facts & 1 Theory
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. [source]
Fact: Google’s cut of Adsense revenue has been shown to vary unpredictably. [source]
Fact: Most of Google’s income comes directly from Advertising. [source]
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.
This entry was posted on Tuesday, April 26th, 2005 at 4:13 pm and is tagged with average earnings, facts fact, random distribution, google, source one, suspicion, profits, stock, traffic, tail effect. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.
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8/26/2006 at 11:42 pm
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