Google AdSense, a cornerstone of online revenue for publishers, is undergoing a significant transformation. Currently operating on a pay-per-click (PPC) model, where publishers earn when users click on displayed ads, AdSense is set to embrace a pay-per-impression (PPI) model in early 2024.
Under PPI, publishers receive compensation each time an ad is displayed, irrespective of user clicks—a model widely adopted in the display advertising industry.
Why is Google Switching to Pay-Per-Impression?
Google’s decision to transition to a PPI model stems from alignment with evolving advertiser preferences. Advertisers increasingly favor buying ads based on impressions, emphasizing reaching a broader audience to build brand awareness.
Additionally, Google asserts that a PPI model is fairer to publishers. The existing PPC model may penalize publishers with a high click-through rate (CTR) but a low conversion rate, as they earn the same amount for a click leading to a conversion as one that does not.
What Does the New Revenue Split Ratio Mean for Publishers?
The revamped revenue split under the PPI model signifies a substantial gain for publishers. They will retain 80% of the revenue generated from their ads, with Google claiming the remaining 20%. This marks a significant increase compared to the current split, where publishers keep 68%, and Google retains 32%.
What Should Publishers Do to Prepare for the New Revenue Split Ratio?
Publishers can proactively ready themselves for the impending change by optimizing their websites and apps for display ads. This involves using high-quality images and videos and strategically placing ads relevant to their content.
Furthermore, publishers can enhance their earnings by exploring alternative ad networks that offer a more favorable revenue share. While AdSense remains a suitable choice, newcomers to display advertising may find higher revenue shares with networks such as Ezoic and Mediavine.
A visually appealing graph illustrating the new AdSense revenue split ratio of 80% for publishers and 20% for Google.
A sneak peek into the AdSense publisher dashboard, showcasing the array of ad placements available to publishers.
Conclusion
The upcoming transition to a pay-per-impression model within AdSense signifies a positive shift for publishers, offering increased earnings from their display ads. Publishers can best prepare by optimizing their digital spaces for display ads and exploring alternative networks with higher revenue shares, ensuring they capitalize on this evolution in online advertising.