google note - next to the search results or on the content...

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The following is a note from Google’s 2005 10K. An excerpt from page 82 was used to answer question six and is as follows: Google AdSense is the program through which we distribute our advertisers’ ads for display on the web sites of our Google Network members. In accordance with Emerging Issues Task Force (“EITF”) Issue No. 99-19, Reporting Revenue Gross as a Principal Versus Net as an Agent , we recognize as revenues the fees charged advertisers each time a user clicks on one of the text-based ads that are displayed
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Unformatted text preview: next to the search results or on the content pages of our Google Network members’ web sites and, for those advertisers who use our cost-per impression pricing, the fees charged advertisers each time an ad is displayed on our members’ sites. These revenues, along with those related to the fees charged advertisers for ads published in the magazines of our Google Network members, is reported on a gross basis primarily because we are the primary obligor to our advertisers....
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