Google To Change AdSense Fee Income Share Construction & Impression Funds

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:

At least they included this -> “Publishers in our ad network are required to adhere to both our AdSense policies and the Better Ads Standards which do not allow practices like pop-ups or interruptive ads that take up the majority of the screen.” https://t.co/HAjyiLntAW

— Glenn Gabe (@glenngabe) November 2, 2023

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.

Yep, considering the HCU now incorporates terrible UX (often based on super aggressive and disruptive ads), the move to impressions will probably not help matters. 🙂 The same goes for broad core updates… But yes, this makes thing consistent with other platforms. pic.twitter.com/HJNoxIRQhr

— Glenn Gabe (@glenngabe) November 2, 2023

Wow.

Can someone who knows more about ads than me explain why Google might have made this move?

And yeah, not great for the current issues the SEO industry is facing 😅 https://t.co/SMh00YIpUx

— Lily Ray 😏 (@lilyraynyc) November 2, 2023

ohhhh boy, the future Goblin’s websites https://t.co/DRWDiBKBVG pic.twitter.com/VklAvwVDDU

— Mike Ginley (@mikeginleyseo) November 2, 2023

Wow, that is a big change
So are people going to be charged more for even fewer results?? https://t.co/uNF5p1Trzz

— Peter Pischke-Friendly Neighborhood Journo (@HappyWarriorP) November 2, 2023

Google AdSense as the new Taboola.
I think SEOs and Paid Search/Social marketers talk more one each other than the Google Search and AdWords/AdSense teams 🧐 https://t.co/rydW7efK1s

— Gianluca Fiorelli (@gfiorelli1) November 2, 2023

Google’s Ads Liaison responds now:

This change shouldn’t impact the user experience. As you noted Gabe, publishers in our ad network are required to adhere to our policies and the Better Ads Standards, created by the Coalition for Better Ads https://t.co/ErcPxBl8IC, and don’t allow practices like pop-ups etc.

— AdsLiaison (@adsliaison) November 3, 2023

The amount publishers keep may fluctuate based on how the advertiser platform takes its fee, whether Google’s buy-side or 3P platforms. e.g. Google Ads doesn’t take a fixed per-impression fee, as many advertisers choose to pay based on user actions, like a click or conversion 2/2

— AdsLiaison (@adsliaison) November 3, 2023

No, this will not change how advertisers are charged by Google.

— AdsLiaison (@adsliaison) November 3, 2023

Forum discussion at WebmasterWorld.