Google has unveiled two significant updates in its approach to sharing ad revenue with publishers. These changes encompass a revision of the revenue-sharing structure within AdSense and a transition to compensating publishers based on impressions.
Previously, the Google AdSense network processed fees within a single transaction. It will now split the AdSense revenue share into separate rates for the buy-side and sell-side.
In addition to updating the revenue-share structure, AdSense will soon transition from primarily paying publishers per click to the display industry standard of paying per impression.
These changes will come into effect from early next year.
Dan Taylor, VP, Global Ads, wrote in a blog post, “These changes will provide a consistent way for publishers to compare the differing fees across the various technologies they use to monetise and will provide even greater transparency into the media-buying process.”
However, he added, “Based on our tests, we don’t expect publishers to see a change in their earnings as a result of these updates.”
For displaying ads with AdSense for content, publishers will receive 80% of the revenue after the advertiser platform takes its fee, whether that be Google’s buy-side or third-party platforms.
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 has taken its fee.
“Google does not control or have visibility into the fees that these third-party platforms charge advertisers or how they calculate them,” the Google blog post read.
For example, when Google Ads purchases display ads on AdSense, Google Ads will retain an average of 15% of advertiser spend. There are variations because Google Ads does not take a fixed, per-impression fee, as many advertisers choose to pay based on user actions, like a click or conversion. Overall, publishers will continue to keep about 68% of the revenue.
“Paying per impression 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,” read the blog.
It’s important to note that this change will not influence the type or quantity of ads publishers can display on their websites.