Google AdSense has shifted to an eCPM (effective cost per thousand impressions) payment model which calculates publisher earnings based on the number of ad impressions rather than clicks. This is after Google’s last November statement that it would be updating the revenue share for AdSense to modernize the way publishers earn money from their website content.
This change impacts how publishers receive their share of ad revenue, with Google paying out 80% of the ad revenue to the publishers. The transition to eCPM aims to provide more consistent earnings for publishers, as it takes into account factors such as traffic, engagement, and session duration.
This transition to eCPM payments for AdSense partners was confirmed by Ginny Marvin, the Google Ads Liaison.
Hi, Yes, this change has rolled out, and partners should now be receiving payments in eCPM. More here: https://t.co/21ZHrMt1LB
— AdsLiaison (@adsliaison) February 12, 2024
A Closer Look at the Updated Revenue Share
Google AdSense has transitioned to an eCPM (effective cost per Mille) payment model, where publishers will now receive 80% of the revenue after the advertiser platform deducts its fee, whether it’s Google buy-side or third-party platforms. This change aims to provide more stable and predictable earnings for publishers.
Despite the shift, Google expects the overall publisher revenue to remain around 68%. Publishers may need to adapt their content and SEO strategies to optimize revenue within the new eCPM model, such as increasing website traffic, improving user engagement metrics, and extending session duration to serve more ad impressions.
Adherence to AdSense policies and Better Ads Standards remains crucial for maintaining ad revenue and a favorable standing within the AdSense program.
How Publishers Can Optimize Their Revenue With eCPM Payment Model
To optimize with Google AdSense’s eCPM (effective cost per thousand impressions) payment mode, publishers should focus on the following strategies:
- Increase website traffic: The more users visit a site, the more ad impressions are generated, leading to higher revenue.
- Improve user engagement metrics: Encourage users to interact with content and spend more time on site, which can increase ad viewability and revenue.
- Extend session duration: longer user sessions result in more ad impressions and higher potential revenue.
- Join multiple ad networks: Offering ad inventory in several ad networks can generate demand and increase the value of inventory.
- Implement a supply-side platform: This can increase fill rate and raise overall revenue.
- Test different ad formats and sizes: Some formats will attract more premium advertisers or increase the effectiveness of ad units.
- Optimize ad layouts: Ensure that ads are well-placed and not disruptive to the user experience.
- Compliance with AdSense policies and Better Ads standards: Adherence to these guidelines is crucial for maintaining ad revenue and staying in good standing with the program.
Remember that while overall revenue for publishers is expected to remain around 68%, individual differences may occur depending on the transaction details and parties involved.
Conclusion
Google AdSense transition to eCPM (effective cost per thousand impressions) payment model aims to provide more stable and predictable earnings for publishers. To optimize revenue within this new model, publishers should focus on increasing website traffic, improving user engagement metrics, and extending session duration.
Additionally, publishers should consider joining multiple ad networks, implementing a supply-side platform, testing different ad formats and sizes, and optimizing ad layouts. Adherence to AdSense policies and better ads standards remains essential for maintaining ad revenue and good standing with the program.
Publishers should also understand the updated revenue share structure, which now allocates 80% of the revenue to publishers after advertiser platform deducts its fee, whether it’s Google’s buy-side or third-party platforms.