Google AdSense will move from pay per click to pay per impression in 2024 is making two crucial changes to its AdSense digital ad offering that are expected to take effect early next year.
In a recent blog post, Dan Taylor, VP of Global Advertising, wrote that these changes will provide a consistent way for publishers to compare different fees across the different technologies they use to monetize, and will provide greater transparency into the media buying process.
However, Google does not expect publishers to see any change in their revenue as a result of these updates.
AdSense will soon transition from the primary pay–per-click system for publishers to the industry standard of paying per impression. This update is expected to provide a more consistent way to pay publishers for their ad space across Google products and third-party platforms, helping them compare with other technology providers they use.
At the same time, it is also changing the AdSense revenue structure, so that fees are not processed in a single transaction. Previously, when publishers chose to use AdSense to monetize their content, they kept 68% of the revenue. This happens when the Google AdSense network processes fees within a single transaction.
It now splits AdSense revenue share into separate buy-side and sell-side rates. For running ads using AdSense for content, publishers will get 80% of the revenue after the advertiser’s platform gets paid, whether it’s Google’s buy-side platforms or third-party platforms.
“For example, when Google Ads buys display ads on AdSense, Google Ads will retain an average of 15% of advertisers’ spend,” explains Taylor. “There are differences because Google Ads does not charge a fixed fee per impression, with many advertisers choosing to pay based on On user actions, such as a click or conversion Overall, publishers will still retain about 68% of revenue.
When advertisers use a third-party platform to purchase display ads on AdSense, publishers will keep 80% of the revenue after the third-party platform collects its fees. Google does not control and has access to the fees these third-party platforms charge advertisers or how they are calculated.
In short, the change in AdSense revenue structure means that publishers will now receive a higher share of ad revenue (80%) after the advertiser’s platform receives their fees, instead of the previous 68% when fees were processed within a single transaction. This change is designed to benefit publishers by increasing their revenue from displaying ads on their content.
