Google AdSense, in a recent Google's Blog post, announced that it'll be updating its revenue share-structure and moving to per-impression payments for publishers. AdSense is an advertising company (ad network) that allows publishers of all size to make (earn) money from their online contents.
Since its inception 20 years ago, the contextual ad network has helped over millions of publishers earn stable revenue from their website. In other words, more than 38 millions websites and blogs are using AdSense.
Furthermore, Google AdSense uses leveraged and clouded technology to offer easy-to-use, and simplified digital advertising and automatically connecting publishers with advertisers around the world to sell their blog/websites' ad space.
Now, Google AdSense is changing the way its going to pay publishers and the monetization model it'll be offering. Previously, Google AdSense offered cost-per-click (CPC) and cost-per-mile (CPM) revenue-sharing model. But now, it diverting to per-impression for all publishers around the world.
What does this update means for Publishers?
The Google AdSense November 2, 2023 updates to how publishers monetize their contents implies that AdSense is changing the way publishers and content creators will earn money from doing what they do best: creating great content. The changes is categorized into two parts: updating AdSense’s revenue-share structure and moving to paying publishers by impression.
According to Google AdSense, advertising industry has evolved; creating multiple monetization channels for content creators and publishers. Due to this, publishers and content creators are using multiple technology simultaneously and combination of direct sales, ad networks and sell-side platforms to sell their ad space.
This is why Google AdSense is making the two changes simultaneously. With it, publishers and content creators will be able to consistently compare the differing fees across the various technology channels they use to monetize their contents. They'll also have more advance transparency opportunities into the media-buying process.
What Changes are coming to AdSense Revenue Share Structure?
Before, as a publisher, Google AdSense paid you with a single transaction. They also transparent about letting publishers have 68% of ad revenue. But now, the ad network is splitting its revenue share into separate rates: buy-side and sell-side.
Buy Side is an advertiser, bidder or company who's willing to pay for your ad space. However, the Sell Side is a publisher or content creator who's willing to sell its ad space for potential bidders.
So, the changes that's coming to the process of AdSense's revenue-sharing model is; publishers will now receive 80% of the ad revenue purchased after the advertiser platform (be it Google Ad or Third-party platform e.g Ezoic) takes its fee.
For example, if advertisers use Ezoic to purchase display ads on AdSense, you will keep 80% of the revenue after Ezoic has taken its fee. However, do not that Google AdSense will also take it fee out of the 80% that's left for you.
Now, take for instance, if advertiser use Google Ads to purchase display ads on AdSense, usually, Google Ads will take 15% of ad spend, however, it's not fixed, it can raise or fall depending various factors including per-impression fee, pay-per-action (PPA) and pay-per-click (PPC), then 85% of the revenue will get to AdSense and you will receive 68% of the revenue.
What is Google AdSense's Per-impression Payment For Publishers?
Google AdSense is known for cost-per-click ad network right? Now, the platform is transiting from paying publishers per click to per impression. According to AdSense, per-impression payment will offer a more uniform way for paying publishers for their ad space across Google’s products and third-party platforms. It'll also help them compare with other ads technology providers they use.
Per-impression Payment for Publishers is a new Google AdSense revenue-share structure that offers pay-per-impressions model. However, AdSense said no actions are required from websites' owners ends, all that's needed is sticking to "both our AdSense policies and Better Ads Standards which do not support practices like pop-ups or interruptive ads that take up the majority of the screen".
For publishers, these changes have both potential benefits and drawbacks.
On the one hand, moving to per-impression payments could provide you with a more stable and predictable earnings stream for you. It could also help you to better understand and optimize your ad revenue.
On the other hand, splitting the revenue-share into separate rates for buying and selling could result in your earnings slightly less overall. However, Google has said that this change is necessary to ensure that you're are paid fairly for the value your contents provide to advertisers.
Overall, the impact of these changes on publishers will depend on a number of factors, including the type of content they produce, the audience they attract, and the ads that are displayed on their website.
Although, Google AdSense said there's no action needed from you, but here are some specific things that you can do to prepare for these updates:
- You should review your AdSense Account Settings to make sure that you're optimized for per-impression payments.
- You must adhere to Google AdSense policies and Better Ads Standard.
- You should take a close monitoring to Earnings data to know how these changes impact your Revenue.
- You can consider using different ad placements and ad formats to see what works best for your audience.
- Consider using other ad monetization technology in addition to AdSense, to see whether Google's taking to it words.
In conclusion, these changes will come into effect in early 2024. Google AdSense has also said that it will provide more information and support to publishers in the lead-up to these changes.