Does Google AdSense Even Make Sense?
Here’s a 2024 PSA (being delivered to you in late 2023): Google AdSense is changing its revenue model from paying per click to exclusively paying per impression.
Google AdSense? What’s that you might ask? Let’s debrief the platform and concept of it.
An example of how AdSense works in programmatic marketing, or bidding in real time, would be something like how your favorite influencer makes money through a YouTube video. Someone like Emma Chamberlain would probably make $18 per every 1,000 views she gets on a YouTube video. Her videos rack up in the millions of impressions/views so cumulatively… that’s quite a bit of total dollar revenue for Chamberlain herself.
Not only on YouTube, but with any advertising on Google, Search Engine Marketing (SEM) or otherwise, this new model will be put into full effect.
Yes that’s right, taking effect in the beginning of 2024 Google’s payment method to content creators and publishers will have these two changes: 1) Revenue-share structure will be updated and 2) Publishers will be paid by impression. According to AdSense, publishers have pocketed 68% of the ad revenue. This is a forecasted prediction, of course.
Google AdSense assures publishers that the new pay structure will not affect the type of ads shown on publisher websites nor the amount of ads shown. Contrary to the unpopular reaction, pay per impression might be better for publishers than pay-per-click (PPC).
But… wait. What is an impression or PPC? Let’s define the two terms.
According to Adobe’s website, a marketing impression, or in this case, a digital marketing impression is the number of opportunities people have to view your campaign. So, using our billboard illustration, the impressions would be how many times people passed the sign — regardless of how often they drove by it or even glanced at the ad. On the opposite spectrum, PPC or pay-per-click is a type of internet marketing which involves advertisers paying a fee each time one of their ads is clicked. Simply, you only pay for advertising if your ad is actually clicked on.
In summary, impressions are total amount of views while PPC is a click on your ad. In theory, paying for impressions will gain publishers more revenue because there are always much more impressions than actual clicks on an ad. This is meant to make more money on Google because at the end of the day corporations, especially big tech conglomerates like Google, create money for their shareholders.
Some ads just don’t generate clicks which means that some publishers don’t get paid for simply showing the ads. With the new pay for impression model, publishers will get paid just for a view of the ad by a consumer browsing the web. Possibly through SEM or even in the form of display ads on YouTube. Whatever the format might be, simply viewing a publisher’s ad will create revenue for the publisher. So publisher’s are definitely winning in this scenario, from what I logically think this model will successfully achieve.
Once this new system is put into place, digital marketers and publishers alike will keep an eye out for the effects and results of the new model and its impact on potential revenue for publishers.
My opinion is that this will be a great new venture for ‘Alphabet’ as the holding company of Google and YouTube (it’s two subsidiaries) because it will make a lot more revenue for publishers than it ever has before. With more amount of impressions, comes more amount of ad revenue. That’s a win for all publishers.
How will publishers or content creators monetize with AdSense? Well, we’re about to find out.
