Google AdSense, the advertising platform that allows website owners to monetize their content, has announced that it will be transitioning from a pay-per-click (PPC) model to a pay-per-impression (PPI) model in 2024¹². This change is expected to provide a more uniform way for paying publishers for their ad space across Google's products and third-party platforms, helping them compare with other technology providers they use¹.
According to Dan Taylor, Vice President, Global Ads, the changes will provide a consistent way for publishers to compare differing fees across the various technologies they use to monetize¹. Google AdSense is soon moving to paying "per impression," which Google notes is the industry standard for display ads (banners, boxes, etc.)²³. This will help publishers to better understand how much revenue they are generating from their ad space, and will also provide greater transparency².
The change will not influence the type or quantity of ads publishers can display on their websites². Google is also changing the AdSense revenue share structure so that fees aren't processed within a single transaction. 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. Publishers will continue to keep about 68% of the revenue².
These changes will go into effect "early next year" and do not "require any action from publishers." Google has conducted testing on possible earning changes for publishers and doesn't expect anything to change². This change is expected to have a significant impact on the advertising industry, and it will be interesting to see how other companies respond to this shift in the coming years¹.
(1) Google AdSense to transition from pay-per-click to pay-per-impression .... https://www.exchange4media.com/digital-news/google-adsense-to-transition-from-pay-per-click-to-pay-per-impression-in-2024-130794.html.
(2) Google AdSense moving to per-impression payments in 2024. https://9to5google.com/2023/11/02/google-adsense-payments-2024/.
(3) AdSense Moves to Pay-Per-Impression and Changes How ... - Techweez. https://techweez.com/2023/11/03/google-adsense-shifts-pay-per-impression-model/.