Google AdSense, the widely used advertising platform, has announced plans to transition from its pay-per-click model to a pay-per-impression model, marking a significant change in how publishers are compensated. Under this new system, publishers will receive payment every time an ad is displayed.
The implementation of these updates is expected to commence early next year, and publishers will not be required to take any specific actions in response to these changes.
Google clarified the transition in a blog post, stating, “AdSense will soon transition from primarily paying publishers per click to the display industry standard of paying per impression.”
This shift is aimed at providing a more consistent method for compensating publishers for their ad space across Google’s products and third-party platforms, facilitating easier comparisons with other technology providers utilized by publishers.
Importantly, Google stressed that this change will not affect the type or quantity of ads that publishers can display on their websites.
Additionally, Google has revised AdSense’s revenue-sharing structure to offer a uniform approach for publishers to assess the various fees associated with the technologies they employ for monetization.
Previously, Google AdSense bundled fees within a single transaction. However, the company is now splitting the AdSense revenue share into separate rates for the buy-side and sell-side.
Under the new structure, publishers will receive 80 percent of the revenue for displaying ads with AdSense for content, after accounting for the advertiser platform’s fees, whether from Google’s buy-side or third-party platforms.
For instance, when Google Ads purchases display ads through AdSense, Google Ads will retain an average of 15 percent of advertiser spend. It’s worth noting that variations can occur because Google Ads doesn’t impose a fixed, per-impression fee. Instead, many advertisers opt to pay based on user actions, such as clicks or conversions.
In summary, publishers can expect to retain approximately 68 percent of the revenue when advertisers use a third-party platform to acquire display ads on AdSense, keeping 80 percent of the revenue after the third-party platform deducts its fees.
