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Google To Change AdSense Payment Revenue Share Structure & Impression Payments - Search Engine Roundtable

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Google has big AdSense news, which it says won't result in a change to how much publishers get paid. Google said it is changing its AdSense revenue-share structure and will also pay per impression and not per click. But again, Google says this won't change how publishers get paid.

Google wrote, "Based on our tests, we don't expect publishers to see a change in their earnings as a result of these updates." I don't see how this is possible but I guess it depends on what you define as "change."

Two things are changing:

(1) Google is updating the AdSense revenue-share structure, which was that publishers retained 68% of the revenue generating from their ads. Now, Google is splitting the AdSense revenue-share into separate rates for the buy-side and sell-side.

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, Google explained.

"When Google Ads purchases display ads on AdSense, Google Ads will retain on average 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," Google added.

Now 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," Google wrote.

(2) AdSense to switch to per-impression payments from per click payments. Google said it is an "industry standard of paying per-impression." "This update will provide a more uniform way for publishers to be paid for their ad space across Google’s products and third-party platforms, helping them compare with other technology providers they use," Google added.

Google said these changes should go into effect "early next year."

There is nothing for publishers to do outside of watching their earnings for changes, which Google said you should not see.

Glenn Gabe posted some good points:

Do you believe Google here?

Here is more from the community at WebmasterWorld and X:

Looks like they will no longer show ctr or cpc... Hiding stats is never a good sign for the publishers. That is what they are doing regardless of how they frame it.
they're doing this either to make a bit more money or a bit less money.

a shiny dollar to the first person to guess the correct option.

I think the bottom line is it will make more money for Google, or they would not be making the change.
I don't get tons of traffic but I have a high RPM so it all works out. If I get paid the same as I do now, fine. If I get paid some lower random CPM based on category or astrology signs or whatever, then not fine. Just wait and see, I suppose.
I have a really bad feeling about this.

My main concern is that we've spent a lot of time over the years trying to find an optimal user experience with ad placements and have done really well with such a limited number of ads but pretty good engagement/CTR surrounded by high quality content. Targeting is usually pretty spot on, too.

Are we going to have to switch from a great user experience to just filling up the page with ads without having to think of where they may provide advertiser value?

I really can't see how this is helpful to advertisers or publishers nor how it helps AdSense's competitive advantage over the countless other networks.

It's probably the first time in 20 or so years that I'm actually thinking seriously about finding an alternative to AdSense. I've given some other networks a go, but mainly CPM-based and never came close to what AdSense has done for us.

Google's Ads Liaison responds now:

Forum discussion at WebmasterWorld.

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"payment" - Google News
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Google To Change AdSense Payment Revenue Share Structure & Impression Payments - Search Engine Roundtable
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