Google AdSense Transitions to eCPM Payment Model: What You Need to Know
Google Ads Liaison Ginny Marvin has confirmed that AdSense has transitioned to an eCPM (effective cost per mille) payment model. This change in payment structure for AdSense publishers was announced by Google last November, as part of an effort to modernize the revenue share structure and how publishers earn money from their website content. With the transition to eCPM payments, AdSense partners will experience a new way of receiving payments based on the effective cost per thousand impressions.
Google has updated its revenue share model for publishers, moving away from the previous fixed 68% share of ad revenue. Now, the revenue share is divided into distinct rates for the buy-side (advertisers) and sell-side (publishers).
Here are the specifics of the new structure:
- Publishers displaying ads with AdSense for content will receive 80% of the revenue after the advertiser platform deducts its fee, whether it’s Google’s buy-side or third-party platforms.
- Google retains an average of 15% of advertiser spend when Google Ads purchases display ads on AdSense. Despite these changes, Google expects the overall publisher revenue to remain around 68%.
- The model changes when third-party platforms buy AdSense display ads. In such cases, publishers receive an 80% share after deducting the third-party’s fees. Google clarifies that it lacks control or visibility into these third-party fees.
The example provided illustrates that after accounting for both buy and sell-side fees, one dollar from an advertiser results in sixty-eight cents for the publisher.
Google is transitioning AdSense to a per-impression payment model to align with industry standards for display advertising. This change will enable publishers to compare earnings across Google’s products and third-party platforms more easily.
According to Google, this update to the payment model will not affect the amount or type of ads publishers can display as long as they comply with existing AdSense policies and Better Ads Standards. These standards prohibit intrusive ads such as pop-ups or ads that take over the screen.
Takeaways For Publishers
Publishers who depend on AdSense for a portion of their income may be contemplating the implications of these changes. Here are some key points to consider:
- Understand the Implications: The eCPM (effective cost per thousand impressions) payment model differs from the previous predominant cost-per-click (CPC) model. With eCPM, publisher revenue is determined by the number of impressions rather than clicks. Publishers should grasp how this new model operates, as it could affect revenue, particularly for those whose content prioritizes high engagement over high traffic volume.
Adapt Content & SEO Strategies
Google has indicated that the earnings for most publishers will likely remain unchanged after the transition to eCPM bidding. However, the impact may vary on an individual basis. Publishers may need to adapt their content and SEO strategies to optimize revenue within the new eCPM model.
Potential strategies include increasing website traffic volume, enhancing user engagement metrics, and prolonging session duration to display more ad impressions.
Compliance with Ad Standards
The shift to an impression-based model emphasizes the importance of publishers adhering to AdSense policies and Better Ads Standards. Publishers must continue to deliver a positive ad experience for users by avoiding disruptive ads. This will be crucial to sustain ad revenue and maintain a favorable standing within the AdSense program.
In Summary
Google’s AdSense updates aim to simplify and bring transparency to the monetization process. However, it’s up to publishers to leverage these changes for their benefit. By staying informed, monitoring performance, and adapting strategies, publishers can continue to thrive in the evolving landscape of digital advertising.
