AdSense Modifying the Revenue Share Structure for Publishers

AdSense has disclosed that it is switching from a pay-per-click to a new pay-per-impression model for its publisher payout structure. Certain viewpoints suggest that this modification could result in increased profits for publishers.

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Publishers are reassured by the statement that most publishers should continue to receive the same sums.

According to Google, these modifications will take effect at the beginning of 2024.

The AdSense blog announced two modifications that publishers should be aware of.

  • The revenue-share plan will be modified.
  • Paying publishers based on impressions.
Publishers have traditionally gotten 68% of the ad revenue, according to AdSense. AdSense predicts that publishers will still take home roughly 68% of the money under the new payment plan. The notification provided an explanation for this modification.

The announcement shared the reasons for the change:

In the past, fees were handled by the Google AdSense network in a single transaction.

The AdSense income share is now divided into different rates for the sell-side and buy-side.

Publishers who use AdSense for content will get 80% of the money after the advertiser platform—such as Google's buy-side or third-party platforms—takes its cut.

For instance, Google advertisements will typically keep 15% of advertiser spend when it purchases display advertisements on AdSense.

 

In the example above, Google keeps about 15% of the money the advertiser pays.

Google Ads keeps fifteen cents of every dollar an advertiser spends; the rest eighty-five cents go to AdSense.

Following Google Ads' deduction of 15 cents for their fee, Google AdSense is claiming a 20% cut, or 17 cents, of the remaining 85 cents.

In this case, the publisher receives the remaining 80% (of 85 cents), or 68 cents, after Google AdSense keeps 17 cents.

Google has produced a graphic that demonstrates this procedure.

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New AdSense Pay Per Impression Pay Structure

Google AdSense guarantees publishers that neither the kind nor the quantity of advertisements displayed on publisher websites will be impacted by the new payment system.

The blog entry clarified:

"AdSense will shortly switch from paying publishers largely per click to the typical payment per impression used by the display industry, in addition to altering our revenue-share structure.

With this upgrade, publishers will be able to compare their rates with those of other technology providers by having a more consistent method for paying for their ad space across all of Google's products and third-party platforms."


 Publisher Reaction

Publishers who use AdSense and post on WebmasterWorld are generally cautious about changes made to the AdSense programme.

A conversation on the WebmasterWorld AdSense forum revealed a combination of optimism and scepticism.

Wait and See

Some publishers advised against drawing conclusions about the outcome for publishers on WebmasterWorld, advising instead to wait and see.

Other publishers posting on the AdSense Forum on WebmasterWorld were skeptical of Google’s motives, writing:

"In my opinion, Google will ultimately benefit financially from this move; otherwise, they wouldn't be making it."

Revenue Share Might Be Bad For Users And Advertisers?

According to a different viewpoint, publishers may be encouraged by the pay-per-impression model to include more adverts on a page in order to boost impressions.

This way of view gives rise to worries that publishers would put ad quantity ahead of making sure that content satisfies the needs of advertisers.

Advertisers have historically relied on audience clicks to start or progress the customer journey, which eventually results in sales. However, it can provide an issue for advertisers if publishers stop giving priority to content that stimulates clicks.

Andem, a WebmasterWorld member, offered their thoughts on this.

I would like to convey my deep worry on this circumstance.

The main concern is that after spending a lot of time fine-tuning the user experience with strategically positioned ads and striking a balance between a small number of ads and excellent content, there's apprehension about switching to a model where the emphasis is on simply flooding the page with ads rather than optimising user experience. One wonders if this alteration would lessen the value that sponsors get from their ad placements.

Pay Per Impression Might Be Good For Publishers

According to Skips, a different publisher, Google is likely to benefit from the change:

The goal of this is to increase Google's revenue.

simply because making money for shareholders is ultimately what corporations are there to do.

Nevertheless, Skips agreed that switching to a pay per impression business model may be more advantageous for publishers.

The reason for this is because some advertisements just do not result in clicks, hence publishers are not compensated for displaying them.

However, even if no one clicks on the advertisements, the publishers will still get paid under the new arrangement for displaying them.

Skips wrote that the change to pay per impression might result in a positive outcome for publishers:

CPM-based systems have advantages.

In particular, when you see low-cost advertisements that also frequently have low click-through rates (CTRs) since advertisers on a tight budget usually don't engage creative agencies to produce high-quality commercials.

Therefore, it would be fantastic if we were granted a consistent CPM as our revenues would be steady and commensurate with the effort we put into producing content and driving visitors.
Skips presents a strong case for why pay-per-impression can be a better option for some publishers than pay-per-click. Publishers are expected to keep a careful eye on their earnings during the rollout of the new system.

In conclusion, publishers' responses to AdSense's switch to a pay-per-impression model have been mixed. Although the promise of steady income is provided, questions remain about possible effects on advertiser value and user experience. Publishers are encouraged to actively monitor their earnings once the changes take effect in 2024. Some have expressed excitement about the advantages of a pay-per-impression approach, especially when it comes to low-cost ads. The publishing world continues to have differing ideas about the way online advertising is developing.

FAQs 

What is the revenue share program of AdSense?

A portion of the money that Google recognises as revenue from the placement of advertisements on each AdSense publisher's website is distributed to them. The revenue share, as this percentage is known, is shown in your AdSense account.

What percentage of revenue does AdSense get?

Publishers who use AdSense for content earn 68% of the money that Google recognises as revenue from the service in exchange for displaying adverts. Google gives publishers fifty-one percent of the revenue from AdSense for search.

What are the revenue models in AdSense?

Publisher websites, or you, can join up for Google AdSense by creating a website, blog, YouTube channel, etc. After being accepted into the programme, Google places adverts on your website. You are paid each time a user clicks on one of these ads.

How much revenue per 1,000 AdSense?

What is AdSense's payout per thousand views? from $0.2 to $2.5 for every 1,000 views. However, there are a lot of variables that affect it, such as the content of your website, the users' locations, their length of stay, and device malfunction. To determine the potential money from your website, using our AdSense revenue calculator located above.

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