Google has been making a lot of changes to the manner in which its search engine functions, and this also extends to the kind of revenue that people can end up generating through ad sense and the like. It turns out that a lot of online publishers are noticing a drastic shift in where their revenue is coming from, with a high proportion stating that it is coming largely from CPMs instead of CPC and CTR metrics.
With all of that having been said and now out of the way, it is important to note that a number of website owners and publishers are reporting that they have started receiving 100% of their revenue from CPM bids. Some are even commenting on how beneficial it could be because of the fact that this is the sort of thing that could potentially end up increasing their revenues in the long run.
Others tried experimenting to see how much they would’ve earned through CPC and got the same number. This indicates that the revenues aren’t being affected either way, although it remains to be seen what the long term impacts of this shift might end up looking like with all things having been considered and taken into account.
Screenshot: Digital Information World
The new payment model isn’t really affecting revenue rates as of right now, but it shows that Google is trying to alter its strategy and only pay for impressions rather than encouraging click through rates. Some might suggest that this would make the jobs of publishers easier, since they will only need to show ads to as many users as possible instead of having to encourage them to click on said ads.
It also has the potential to change the marketing landscape entirely. Click through rates and costs per click might soon become far less important than they used to be, and it will be interesting to see the manner in which this affects Google’s SERP as well as the publishers willing to place ads on their content in the coming years. The crucial factor to consider here is revenue, since any decline in that metric will create a lot of ill will.
H/T: WebmasterWorld - SERoundTable / Barry Schwartz
Read next: Google Says Commercial Spyware Vendors Are Ruining Free Speech
With all of that having been said and now out of the way, it is important to note that a number of website owners and publishers are reporting that they have started receiving 100% of their revenue from CPM bids. Some are even commenting on how beneficial it could be because of the fact that this is the sort of thing that could potentially end up increasing their revenues in the long run.
Others tried experimenting to see how much they would’ve earned through CPC and got the same number. This indicates that the revenues aren’t being affected either way, although it remains to be seen what the long term impacts of this shift might end up looking like with all things having been considered and taken into account.
The new payment model isn’t really affecting revenue rates as of right now, but it shows that Google is trying to alter its strategy and only pay for impressions rather than encouraging click through rates. Some might suggest that this would make the jobs of publishers easier, since they will only need to show ads to as many users as possible instead of having to encourage them to click on said ads.
It also has the potential to change the marketing landscape entirely. Click through rates and costs per click might soon become far less important than they used to be, and it will be interesting to see the manner in which this affects Google’s SERP as well as the publishers willing to place ads on their content in the coming years. The crucial factor to consider here is revenue, since any decline in that metric will create a lot of ill will.
H/T: WebmasterWorld - SERoundTable / Barry Schwartz
Read next: Google Says Commercial Spyware Vendors Are Ruining Free Speech
