Google AdSense to transition from pay-per-click to pay-per-impression in 2024
As per Dan Taylor, Vice President, Global Ads, the changes will provide a consistent way for publishers to compare differing fees across the various technologies they use to monetize
Google is making two crucial changes to its digital advertising offering AdSense that are expected to go into effect early next year.
In a latest blog, Dan Taylor, Vice President, Global Ads, wrote that these changes will provide a consistent way for publishers to compare the differing fees across the various technologies they use to monetize and will provide even greater transparency into the media-buying process.
However, Google doesn’t expect publishers to see a change in their earnings as a result of these updates.
AdSense will soon transition from primarily paying publishers per click to the display industry standard of paying per impression. This update is expected to provide a more uniform way for paying publishers for their ad space across Google’s products and third-party platforms, helping them compare with other technology providers they use.
Meanwhile, it is also changing the AdSense revenue structure, so that the fees aren't processed within a single transaction. Previously, when publishers have chosen to use AdSense to monetize their content, they have kept 68% of the revenue. This is when the Google AdSense network processed fees within a single transaction.
It is now splitting the AdSense revenue share into separate rates for the buy-side and sell-side. For displaying ads with AdSense for content, publishers will receive 80% of the revenue after the advertiser platform takes its fee, whether that be Google’s buy-side or third-party platforms.
Taylor explains, “For example, when Google Ads purchases display ads on AdSense, Google Ads will retain on average 15% of advertiser spend. There are variations because Google Ads does not take a fixed, per-impression fee, as many advertisers choose to pay based on user actions, like a click or conversion. Overall, publishers will continue to keep about 68% of the revenue.
When advertisers use a third-party platform to purchase display ads on AdSense, publishers will keep 80% of the revenue after the third-party platform has taken its fee. Google does not control or have visibility into the fees that these third-party platforms charge advertisers or how they calculate them.”
In summary, the change in the AdSense revenue structure means that publishers will now receive a higher share of the ad revenue (80%) after the advertiser's platform takes its fee, rather than the previous 68% when fees were processed within a single transaction. This change is designed to benefit publishers by increasing their earnings from displaying ads on their content.
