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Adsense Publishers took home $916 Million in 2006

Financial reports of Google for 2006 has been published in their Investor Relations site with the ff. highlights for the 4th quarter:

[start report]
RevenuesGoogle reported revenues of $3.21 billion for the quarter ended December 31, 2006, representing a 67% increase over fourth quarter 2005 revenues of $1.92 billion and a 19% increase over third quarter 2006 revenues of $2.69 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC.

Google Sites Revenues – Google-owned sites generated revenues of $1.98 billion, or 62% of total revenues, in the fourth quarter of 2006. This represents an 80% increase over fourth quarter 2005 revenues of $1.10 billion and a 22% increase over third quarter 2006 revenues of $1.63 billion.

Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $1.20 billion, or 37% of total revenues, in the fourth quarter of 2006. This is a 50% increase over network revenues of $799 million generated in the fourth quarter of 2005 and a 16% increase over third quarter 2006 revenues of $1.04 billion.

International Revenues – Revenues from outside of the United States contributed 44% of total revenues in the fourth quarter of 2006, compared to 44% in the third quarter of 2006 and 38% in the fourth quarter of 2005. Had foreign exchange rates remained constant from the third quarter through the fourth quarter of 2006, our revenues in the fourth quarter of 2006 would have been $18 million lower. Had foreign exchange rates remained constant from the fourth quarter of 2005 through the fourth quarter of 2006, our revenues in the fourth quarter of 2006 would have been $81 million lower.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and our AdSense partners, increased approximately 61% over the fourth quarter of 2005 and approximately 22% over the third quarter of 2006.

TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $976 million in the fourth quarter of 2006. This compares to TAC of $825 million in the third quarter. TAC as a percentage of advertising revenues was 31% in both the fourth quarter and the third quarter.

The majority of TAC expense is related to amounts ultimately paid to our AdSense partners, which totaled $916 million in the fourth quarter of 2006. TAC is also related to amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $60 million in the fourth quarter of 2006.

Other Cost of Revenues – Other cost of revenues, which is comprised primarily of data center operational expenses, as well as credit card processing charges, increased to $307 million, or 10% of revenues, in the fourth quarter of 2006, compared to $223 million, or 8% of revenues, in the third quarter.

Operating Expenses – Operating expenses, other than cost of revenues, were $862 million in the fourth quarter. These operating expenses included $493 million in payroll-related and facilities expenses.

Stock-Based Compensation – In the fourth quarter, the total charge related to stock-based compensation was $134 million as compared to $100 million in the third quarter.

Cash
– As of December 31, 2006, cash, cash equivalents, and marketable securities were $11.2 billion.

On a worldwide basis, Google employed 10,674 full-time employees as of December 31, 2006, up from 9,378 full time employees as of September 30, 2006.

[/end report]

As an Adsense Publisher myself, it feels like I own a tiny part of Google . :D

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

9 Responses

  1. Avatar for joash joash says:

    i saw a post on another pinoy blog how you can earn 3million in just 6 months. Is it true?

    www.problogger101.blogspot.com

  2. Avatar for anthony anthony says:

    Migs,

    Sabi nga ng kanta ng kamikaze, Libre lang mangarap. :)

    -Anthony

  3. Avatar for Miguel Miguel says:

    anthony, that is just too damned hard already. Even Microsoft couldn’t do it anymore.

  4. Avatar for John John says:

    pre abe publushers

  5. Avatar for carlo carlo says:

    And 16Million of that went to yuga? hehehe LOL!

  6. Avatar for anthony anthony says:

    oooops. I never thought someone would take my first comment too seriously.

    hi Migs! :)

    Uhm. If I am really serious about becoming a billionaire and i have the capacity and the resources to pull it off, of course i wouldn’t rely on Adsense.

    I would probably start the internet’s next big thing and take on Google itself.;)

  7. Avatar for Miguel Miguel says:

    If you want to be an Adsense Billionaire and earn even more than premium publishers, the way to go is to put up a site like MySpace.

    Google will then pay you cash for the right to put up their ads.

  8. Avatar for anthony anthony says:

    hmmm. this means we are not going to become billionares with adsense unless of course you convert your earnings to Philippine Peso. Hehe.

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