Google AdSense, the popular online advertising program that allows publishers to earn money by displaying ads on their websites, has announced two major changes that will take effect in 2024. The first change is that AdSense will transition from paying publishers per click to paying per impression, which means that publishers will earn money based on the number of times an ad is shown on their site, regardless of whether the user clicks on it or not. The second change is that AdSense will update its revenue share structure, splitting the fees into separate rates for the buy-side and sell-side platforms. These changes are expected to provide more transparency in the media-buying process and a more uniform way of paying publishers across Google’s products and third-party platforms.
Google AdSense Changes
Shift to per-impression payments in 2024
Currently, Google AdSense pays publishers when a user clicks on an ad on their site, or “per click”. This payment method varies depending on the type of ad, the advertiser’s bid, and the quality of the traffic. However, starting from 2024, AdSense will pay publishers “per impression”, which is the industry standard for display ads (banners, boxes, etc.). This means that publishers will earn money based on the number of times an ad is shown on their site, regardless of whether the user interacts with it or not. Google notes that this payment method will not influence the type or quantity of ads publishers can display on their websites.
Impact on publishers
Google claims that these changes will not affect the earnings of the publishers, as they have conducted testing and found no significant difference in the revenue generated by the two payment methods. Google also says that publishers will continue to keep about 68% of the revenue, which is the same as before. However, some publishers may experience a decrease or an increase in their earnings, depending on the performance of their ads and the demand from advertisers. Google advises publishers to monitor their reports and optimize their ad settings to maximize their revenue.
Benefits of the New Payment Structure
Google says that the new payment structure will offer several benefits for publishers, such as:
- More transparency in the media-buying process: By splitting the fees into separate rates for the buy-side and sell-side platforms, Google will provide more clarity on how much each party charges and how much publishers receive. This will help publishers compare with other technology providers they use and make informed decisions about their monetization strategies.
- Easier for publishers to track earnings: By paying per impression, Google will simplify the way publishers measure their earnings and performance. Publishers will be able to see how much they earn for each impression, rather than estimating based on clicks and conversions. This will also reduce the risk of invalid clicks and fraudulent activities that may affect their earnings.
- Uniform way of paying publishers: By paying per impression, Google will provide a consistent and standardized way of paying publishers for their ad space across Google’s products and third-party platforms. This will help publishers compare their earnings from different sources and understand the value of their inventory.
Criticisms and Concerns
While Google claims that the new payment structure will benefit publishers, some critics and experts have raised some concerns and questions, such as:
- Potential decrease in earnings for some publishers: Some publishers may see a drop in their earnings, especially if their ads have a low click-through rate or a high bounce rate. This may discourage publishers from creating quality content and engaging with their audience, as they may not be rewarded for their efforts. Some publishers may also lose their competitive edge, as they may not be able to charge higher rates for their niche or premium content.
- Lack of control over ads being displayed: Some publishers may feel that they have less control over the ads being displayed on their site, as they may not be able to choose the type, format, or quality of the ads. Some publishers may also worry that the ads may not match their content or audience, or that they may be intrusive or irrelevant. This may affect the user experience and the reputation of the publishers.
Conclusion
Google AdSense is one of the most popular and widely used online advertising programs that allows publishers to earn money by displaying ads on their websites. However, in 2024, Google AdSense will undergo two major changes: shifting from paying publishers per click to paying per impression, and updating its revenue share structure by splitting the fees into separate rates for the buy-side and sell-side platforms. Google says that these changes will provide more transparency in the media-buying process and a more uniform way of paying publishers across Google’s products and third-party platforms. However, some critics and experts have expressed some concerns and doubts about the impact of these changes on the earnings and control of the publishers. Therefore, publishers should be aware of these changes and prepare accordingly to optimize their revenue and performance.
