Google will shift Adsense ads from ‘cost-per-click’ to ‘cost-per-impression’ in 2024

https://9to5google.com/2023/11/02/google-adsense-payments-2024/

Google Adsense is an advertising distribution service that Google has been developing since 2003, and publishers are paid billions of dollars (hundreds of billions of yen) annually.

The basis for calculating the payment was the number of clicks on the ad. Advertisements published using this method are called pay-per-click (PPC) advertisements.

However, Google has announced that from the beginning of 2024, it will switch to pay per impression advertising (PPI), which is based on the number of times the ad is displayed.

Google said that pay-per-impression is the industry standard for ‘display ads’ such as banner ads and box ads, but the change will impact the number and types of ads publishers can display on their websites. It is explained that it will not appear.

At the same time, Adsense’s revenue distribution, which was previously processed in one payment, will now be processed at separate rates on the buy side (ad placement side) and sell side (ad space provider side). change. When displaying ads with Adsense, publishers will receive 80% of the revenue, regardless of whether they use Google’s buy-side platform or a third-party buy-side platform.

Google says this change does not require any action from publishers.

In addition, on the social news site Hacker News, Mr. GoRudy, who has been involved in digital advertising for 13 years, said that large-scale publishers have been using Google Ad Exchange with Google’s ad management platform, Google AdManager , and have been advertising with CPM for a long time. It was pointed out that the company is operating the . Only small sites have been using Google Adsense for CPC, and the drop in click-through rates may have forced them to switch from CPC to more effective CPM.

Google’s premium ad network for professional publishers is AdX which is run via … | Hacker News
https://news.ycombinator.com/item?id=38119412