How Google and Yahoo could be loosing money

Title Page: How Google and Yahoo are loosing money.

By: Akhil Sharma

Email id: Connect@akhilsharma.com/sid2bud@gmail.com

Abstract:

1) Google because of taking money from advertisers in their local currency and paying the publishers for putting up their ads in EURO/Dollars, is losing money daily.

2) Either their is an error in google adsense reporting structure for the websites at which its ad codes is served or yahoo is loosing money on a daily basis by displaying the ad codes of individuals on their home page. (The scenario is reported in a condition when the individual display yahoo content in his website using IFRAME.

Description:

Few Facts:

Adwords: AdWords offers pay-per-click (PPC) advertising, cost-per-thousand (CPM) advertising, and site-targeted advertising for text, banner, and rich-media ads. The AdWords program includes local, national, and international distribution. Google’s text advertisements are short, consisting of one headline consisting of 25 characters and two additional text lines consisting of 35 characters each. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes. (Source:http://en.wikipedia.org/wiki/AdWords)

Google Takes PPC cost from advertisers in their respective local currency.

Adsense: Google AdSense is an ad serving application run by Google Inc. Website owners can enroll in this program to enable text, image, and videoadvertisements on their websites. These advertisements are administered, sorted, and maintained by Google, and they can generate revenue on either aper-click or per-impression basis.(Source: http://en.wikipedia.org/wiki/Adsense)

Google Pays publishers in EURO or US Dollars for putting up Ads.

Scenario 1: An Advertiser uses adwords to get traffic and uses adsense to generate some revenue out of it.

Now suppose an advertiser(Which is me in this case) uses adwords to get traffic while opting out to pay in my local currency(Indian Rupee) of which unit value is less than US Dollar and Euro. For e.g. Indian Rupee.

Now I can go down on my CPC (Cost per Click) as much as low to the lowest denomination of my local currency i.e. 1 Rupee Paisa (1/100 Indian Rupee).it is possible, see snapshot below figure 1:

However, the whole campaign cannot be brought to 1 paisa but the whole campaign can be brought to 8-9 paisa which I did, snapshot attached below figure 2:

It means that I am paying Google average 9 Paisa for a single click to my website. Now my text ad is placed in different google search partners as well as parked domains and websites using adsense to serve ads given by Google.