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Google AdSense to Introduce New Payment Model for Publishers

Summary

Google AdSense, one of the largest online advertising programs, has announced a change in its revenue model for publishers. Starting from the beginning of next year, the payments to publishers will be shifted from a per-click metric to a per-impression […]

Google AdSense to Introduce New Payment Model for Publishers

Google AdSense, one of the largest online advertising programs, has announced a change in its revenue model for publishers. Starting from the beginning of next year, the payments to publishers will be shifted from a per-click metric to a per-impression metric. This marks the first change in their revenue model in the past 20 years.

According to Dan Taylor, Google’s Vice President for Global Ads, payment per impression is an industry standard for publisher payouts. Google estimates that publishers will retain the same percentage share of each ad spent with Google, which includes around 68%. When a buyer uses Google’s ad rental system, about 15 cents goes to Google DSP, and the AdSense network takes a 20% commission on the remaining amount, leaving 68 cents for publishers.

When a third-party DSP or ad buying system is used, the publisher will keep 80% of the revenue after the third-party technology takes its share. Depending on the commission charged by the DSP, advertisers could receive more or less than 68 cents.

However, advertisers will not see any changes in their purchasing model. They will still offer and pay based on clicks and conversions, and Google will ensure it earns its commission when transitioning from CPM to MLM.

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