Many publishers use Google Adsense to monetize their content. From the start, Google Adsense follows the “Pay-Per-Click” model which means you can make money when someone clicks an ad on your website. As per the recent announcement, Google Adsense will move to Pay-Per-Impression Model in 2024. In this article, we will discuss this change and what publishers can expect from this change.
Google Adsense Current Earning Model: PPC
Google Adsense follows the Pay-per-click earning model from the start. For example, the Adsense partnered publishers only get paid based on the clicks that occurred on their website and not by the delivered impressions. For example, you served 1000 impressions on your website and no one clicked those ads. In that situation, you will not get any revenue from the AdSense. This is how Adsense currently working.
WHY Google AdSense to Move to Pay-Per-Impression Model in 2024?
As per the recent announcement, Google is going to make two following changes in 2024.
- Updating Adsense Revenue Structure
- Moving to Pay-Per-Impression model
Currently, various options are available to the publishers to sell their ad space. They are partnered with various ad networks and SSPs to sell their inventories. Mostly, other ad networks and SSPs are using the Pay Per Impression model to pay their publishers. In that situation, the publishers can’t compare the effectiveness of the ad networks by comparing the revenue from the two different pay model ad networks.
To improve the transparency in the ad buying process, google now decided to adopt the Pay Per Impression Model. So, the publishers can easily compare the AdSense performance and fees with other ad networks.
What Publishers Can Expect From These Changes?
Once Google Adsense adopts the Pay Per Impression earning model, the associated publishers will get paid by the impressions, not by the clicks. Per the current Adsense Fee structure, the revenue share between the publisher and Adsense is 68%/32%. For example, if the advertiser pays 1 dollar for 1 click. In that situation, the publisher will get 68 cents and Adsense get 32 cents.
Updating Adsense Revenue Structure :
As per the announcement, the Google Adsense revenue structure will be updated. In the new fee structure, Adsense splits the fee into multiple parts. For example, the Fee for AdSense, Fee for the buy side, Fee for the sell side.
When websites show ads from Google Ads, the fees will be divided as below.
Fee for Google Ads – 15%
Fee for Google Ads – 17%
Publisher Revenue – 68%
That means, the Adsense partnered publishers still get 68% of ad revenue share in the new pricing model. If the publisher displays an ad from third party ad networks, then Google Adsense will not take the fee. In that situation, the publishers get more revenue share.
Moving to Pay-Per-Impression model :
Industry-wide, most platforms adopted for pay per impression model. Because most advertisers run their ad campaigns to increase awareness. Otherside, most ad networks also pay their publishers based on impressions. By adopting the pay per impression model, the publishers can compare Adsense revenue and fees with other ad networks.
Will the publishers take any action from their end?
No, the publishers are not advised to take any action for these changes. But, as a blogger and digital marketing analyst, I have a few suggestions for publishers to increase their ad revenue.
- In the pay per impression model, the viewability going to play a crucial role in ad revenue. So, I advise publishers to place more ad codes on places that are mostly viewable to visitors.
- Google Adsense strictly mentioned that the publishers won’t do any ad fraud activity to make more money. Such as popup ads, auto-refreshing ads, multiple ad codes on a single placement, etc.
- If you are using multiple ad networks to serve the ads, compare the revenue from other ad networks and focus on delivering more ads from higher revenue-generating ad networks.
Conclusion
Finally, Google Adsense going to adopt pay per impression model. After this change, the publishers will get paid by impressions. So, publishers can compare the Adsense revenue with other ad networks and optimize towards making more money.
