I don’t know why it’s taken me a little while to update some of my analysis but there has been a big reporting change by Google which got me a little excited. In the past Google only reported an overall aggregate Traffic Acquisition Cost (TAC) but now this has all changed.
Since Q1 2015 Google has broken out the numbers for the network members from the distribution partners. You may ask, what is the difference and where does the domain industry sit?
Distribution partners are people like Apple, who charge Google for real-estate on iPhones etc. Google has hidden the amount that companies like Apple take by publishing the amount of revenue as a percentage of the overall Google website revenues (an odd metric actually). This means it’s impossible to reverse engineer the financial relationship…..which actually makes commercial sense.
On the other hand, for the first time ever Google has released the TAC to network members and this is the segment that the domain industry sits within. According to the reports, Google is paying out between 68-70% of the advertising revenue to this channel....