In a significant development, Google AdSense, the renowned advertising platform, is poised for a transformative shift. The platform will transition from its traditional pay-per-click model to a pay-per-impression model, heralding a new era for publishers. This strategic shift will entail paying publishers every time an ad is displayed, fundamentally altering the way ad revenues are generated.
Uniform Payment Model for Publishers:
Google’s announcement indicates that this transition will come into effect early next year and promises a seamless experience for publishers. This change will bring AdSense in line with the industry standard of paying per impression, aligning it with prevailing practices.
The tech giant emphasizes that these changes will not impact the type or quantity of ads that publishers can display on their websites. This transition aims to offer a more consistent and standardized approach to compensating publishers for their ad space across various Google products and third-party platforms.
Revenue-Share Structure Update:
In addition to the transition to a pay-per-impression model, Google has revamped AdSense’s revenue-sharing structure. This transformation enables publishers to effectively compare the diverse fees associated with the technologies they use for monetization.
Previously, Google AdSense managed fees within a single transaction. However, the company has now separated the revenue share into distinct rates for the buy-side and sell-side, ushering in more transparency and fairness.
Under this new structure, publishers will receive 80% of the revenue after the advertiser platform deducts its fees. Whether the advertiser platform is Google’s buy-side or a third-party entity, publishers will receive their share. Google Ads, for instance, will retain an average of 15% of advertiser spend when it purchases display ads on AdSense. This variation arises because Google Ads does not impose a fixed, per-impression fee, as advertisers often choose to pay based on user actions like clicks or conversions.
Overall, publishers are set to retain approximately 68% of the revenue generated. When third-party platforms are involved in the purchase of display ads on AdSense, publishers will still keep 80% of the revenue after the third-party platform’s fees are deducted.
Google AdSense is making a fundamental shift from the pay-per-click model to a pay-per-impression model, effective early next year, without requiring any publisher action. The transition aims to establish a uniform payment model for publishers, aligning AdSense with industry standards. Additionally, the revenue-sharing structure has been revamped to provide consistency and transparency for publishers, ensuring fair compensation and consistency across various monetization technologies.
