In a significant move that aligns with industry standards, Google has announced that starting in 2024, AdSense will transition to a payment system based on impressions rather than the current click-based model. This change is expected to bring about greater consistency and transparency for publishers in monetizing their ad spaces across various platforms.
Uniform Monetization and Enhanced Transparency
The shift to impression-based payments is part of a broader update to the Google AdSense Revenue share structure. Google’s aim is to provide a uniform method for publishers to evaluate fees across different monetization technologies. This move is not anticipated to affect publishers’ earnings or the type and quantity of ads they can display on their websites.
Under the new structure, publishers will receive 80% of the revenue after the advertiser platform takes its fee. This applies whether the ads are served through Google’s own buy-side platform or through third-party platforms. Despite the restructuring, publishers will continue to retain about 68% of the revenue, which remains unchanged from the current model.
No Expected Change in Publisher Earnings
Google has reassured publishers that the updates will not necessitate any action on their part and that earnings are not expected to change. The company has conducted tests to assess the potential impact on publishers’ earnings and believes that the transition will be smooth.
Key Points from the Announced Changes:
- Transition to Impression-Based Payments: AdSense will start paying publishers per impression rather than per click, aligning with the industry standard for display ads.
- Updated Revenue Share Structure: The revenue share is now split into separate rates for the buy-side and sell-side, with publishers receiving 80% of the revenue post fees.
- Consistency Across Platforms: The new system will allow publishers to compare their earnings more uniformly with other technology providers they might be using.
- No Action Required from Publishers: The changes will be implemented automatically, and publishers do not need to make any adjustments.
This strategic update by Google is poised to streamline the advertising revenue model for digital publishers, potentially setting a new standard for the industry as it moves forward into 2024.