According to Dan Taylor, Vice President of Global Ads, these alterations will establish a uniform method for publishers to evaluate varying charges associated with the diverse technologies they employ for revenue generation.
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Google is implementing two important modifications to its digital advertising service, AdSense, set to become effective early next year. According to Dan Taylor, Vice President, Global Ads, in a recent blog post, these alterations aim to establish a consistent method for publishers to compare the various fees associated with the technologies they use for monetization. Additionally, they seek to enhance transparency in the media-buying process.
Nonetheless, Google does not anticipate that publishers will notice a change in their earnings due to these updates.
AdSense will soon transition from its primary payment method of per-click to the industry-standard practice of per-impression payment. This transition is expected to create a more uniform way of compensating publishers for their ad space across Google’s products and third-party platforms, facilitating comparisons with other technology providers they employ.
Furthermore, there is a modification to the AdSense revenue structure, wherein fees are no longer processed in a single transaction. Previously, when publishers opted to use AdSense for monetizing their content, they retained 68% of the revenue, with the Google AdSense network processing all fees in one go.
Now, the AdSense revenue sharing model is split into distinct rates for the buy-side and sell-side. For displaying ads using 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.
Taylor clarifies this with an example, stating, “For instance, when Google Ads purchases display ads on AdSense, Google Ads will, on average, retain 15% of the advertiser spend. There may be variations because Google Ads doesn’t charge a fixed, per-impression fee, as many advertisers opt for payment based on user actions, such as clicks or conversions. Overall, publishers will still retain around 68% of the revenue.”
When advertisers employ a third-party platform to acquire display ads on AdSense, publishers will keep 80% of the revenue after the third-party platform has accounted for its fee. Google does not have control over or visibility into the fees charged by these third-party platforms to advertisers or their calculation methods.
In summary, the change in the AdSense revenue structure implies that publishers will now receive a larger share of the ad revenue (80%) after the advertiser’s platform deducts its fee, in contrast to the previous 68% when fees were processed as a single transaction. This adjustment is aimed at benefiting publishers by increasing their earnings from displaying ads within their content.