AdSense Shifts to Pay Per Impression for Publisher Revenue Share

6th November, 2023
99codedesign
AdSense Shifts to Pay Per Impression for Publisher Revenue Share

Google has announced that it will be changing how it pays AdSense publishers. The new strategy uses a pay-per-impression method instead of the pay-per-click model. Early in 2024, this big adjustment is scheduled to go into force. Google guarantees that most publishers’ overall revenue will not be significantly impacted.

Two significant changes were disclosed by the firm in a blog post on the AdSense website:

  1. The revenue-sharing structure will be overhauled.
  2. Publishers will be compensated based on impressions rather than clicks.

AdSense publishers used to get 68% of the money from each ad. AdSense estimates that publishers will still take home roughly 68% of the money under the new payment plan.

Google’s rationale for this transformation is outlined in the announcement:

  • Previously, Google AdSense processed fees in a single transaction. The new approach segregates the revenue share into distinct rates for the buy-side and sell-side.
  • For displaying ads through AdSense for content, publishers will receive 80% of the revenue after the advertiser platform deducts its fee, whether it’s Google’s buy-side or third-party platforms.
  • For instance, when Google Ads purchases display ads on AdSense, Google Ads will retain an average of 15% of the advertiser’s spending.

In this example, Google captures around 15% of the advertiser’s fee. Subsequently, within the remaining 85 cents, Google AdSense claims 20% (equal to 17 cents) out of the 85 cents, which is the sum left after Google Ads’ 15 cents fee.

In this context, Google AdSense takes 17 cents, leaving publishers with the remaining 80% (of 85 cents), equivalent to 68 cents.

Google AdSense assures publishers that the alteration in the payment structure will not influence the type or quantity of ads displayed on publisher websites.

The blog post explains:

  • “In addition to updating our revenue-sharing structure, AdSense will soon transition from primarily paying publishers per click to the display industry standard of paying per impression. This update will 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.”

Publisher Reaction:

AdSense publishers expressing their opinions on Webmaster World exhibit a mixture of skepticism and optimism regarding the changes to the AdSense program.

Some publishers advise taking a ‘wait and see’ approach before drawing conclusions about the impact on publishers. Others in the AdSense Forum on Webmaster World are skeptical about Google’s motives, suggesting that the changes are aimed at increasing Google’s profits.

Concerns have been raised that the pay-per-impression structure may encourage publishers to flood their pages with ads to generate more impressions, potentially disregarding whether the content is conducive to advertisers. This shift may have implications for advertisers who rely on clicks to drive customer engagement and purchases.

Webmaster World member Andem voices apprehension about the transition, particularly regarding the potential impact on the user experience, ad placements, and advertiser value.

On the other hand, some, like Skips, believe that the move to a pay-per-impression model might be beneficial for publishers. Skips highlights the advantage of being compensated for ads that don’t generate clicks, providing more predictable earnings.

In summary, while concerns and reservations are prevalent among AdSense publishers, many are cautiously optimistic about the potential benefits of transitioning to a pay-per-impression payment model. Publishers are expected to closely monitor their revenues once the new system becomes operational.”