[HN Gopher] Google adsense is transitioning to per-impression pa...
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       Google adsense is transitioning to per-impression payments for
       publishers
        
       Author : maoro
       Score  : 97 points
       Date   : 2023-11-02 18:15 UTC (4 hours ago)
        
 (HTM) web link (blog.google)
 (TXT) w3m dump (blog.google)
        
       | djyaz1200 wrote:
       | Didn't Barry Dillar go see Sergey and Larry early in Google's
       | beginnings? I think the direct quote was "you are f'ing up the
       | magic" referring to the fact that advertisers don't know what's
       | working, and Google was ruining that. Although it's taken them
       | many years they seem to now be taking his advice to heart.
       | 
       | I looked to cite this but couldn't find it on Google, so I may be
       | mistaken...
        
         | jshen wrote:
         | enshitification
         | 
         | This also means there is a huge opportunity to disrupt google
         | at this pont.
         | 
         | edit to add reference:
         | https://en.wikipedia.org/wiki/Enshittification
        
           | candiddevmike wrote:
           | How do you disrupt a monopoly?
        
             | ipaddr wrote:
             | One feature at a time
        
             | jshen wrote:
             | I don't think that is the right way to think about google.
             | There is virtually no friction or switching cost for a user
             | to use a different search engine. I think the biggest thing
             | keeping google at the top is that they are the default on
             | mobile phones, and they pay a ton of money to apple to keep
             | it that way.
             | 
             | I also think that disruption will come from something that
             | looks different than google, maybe something like chatgpt,
             | that doesn't appear to be a direct competitor at first but
             | ends up taking a significant bite out of usage of google.
        
               | plagiarist wrote:
               | There is a some amount of friction because browsers
               | default to it and user inertia from using it for decades.
        
         | AuthError wrote:
         | https://www.theguardian.com/technology/2010/mar/04/google-ke...
         | looks like 2 different things (barry dillar met them but larry
         | was on phone which he thought was rude, clicks vs impressions
         | was something google was looking for in CEO (eric schmidt
         | passed that test or something))
        
       | aaronbrethorst wrote:
       | lol, ok:                   Safari can't open the page
       | "https://blog.google/products/adsense/evolving-how-publishers-
       | monetize-with-adsense/".         The error is: "The URL was
       | blocked by a content blocker"         (WebKitErrorDomain:104)
        
         | olliej wrote:
         | Over aggressive adblocker or custom rule?
        
           | aaronbrethorst wrote:
           | Over-aggressive ad blocker.
        
         | Macha wrote:
         | I mean, this is the fault of your content blocker being
         | overeager, probably with a *adsense* or *ad* rule in there
         | somewhere
        
           | pests wrote:
           | I love how the Facebook Ad Manager and Google Ad dashboards
           | all have a helpful warning telling users to disable
           | adblocking lmao. They know even advertisers don't like ads.
        
       | seydor wrote:
       | > to the display industry standard of paying per impression
       | 
       | Huh, who sets the industry standard? Google, google, google and
       | google.
        
         | bragr wrote:
         | There are other forms of advertising besides online ads. If
         | you're talking traditional print, billboards, an electronic
         | sign in the mall, radio, etc, then you are talking in terms of
         | impressions per dollar.
        
           | NowThenGoodBad wrote:
           | *per potential impressions per dollar
           | 
           | You can actually use that as a negotiating point. Let's say a
           | new route is opened causing traffic to bypass a normally high
           | traffic point. The advertiser might still price per potential
           | impression per dollar when the reality is significantly
           | different.
           | 
           | Not to nitpick but it's important for people to do their
           | homework on this and realize that those selling the ad space
           | are going to price on the higher end of potential
           | impressions.
        
       | omarfarooq wrote:
       | The CPM will still factor in click through rates, so it's just a
       | different way of tabulating the same numbers.
        
         | riku_iki wrote:
         | The worry is that Google will game auctions and pocket the
         | difference.
        
       | h1fra wrote:
       | Wasn't CPM the norm before the market went to CPC because it was
       | easily gamed by publishers?
       | 
       | Also it's funny for them to say "Publishers gets 68%" which
       | sounds huge but actually translates to a staggering 32% fee.
        
         | Scoundreller wrote:
         | I think YouTube is 50% !
         | 
         | But Adsense was capable of earning so much more than what most
         | could do themselves that I was happy to "pay" them when I ran a
         | semi-popular site.
         | 
         | Though CPM can be gamed as well: put the ad at the bottom
         | instead of the top. At the right instead of the left.
         | 
         | Can be gamed by publishers too: create an ad that users see but
         | don't click on, but act on anyway. E.g. an ad for a cola and
         | then you drink one from your fridge.
         | 
         | I thought Google basically blended it all together when
         | deciding which ad to present: a poorly clicked ad will need to
         | pay more per click to get displayed.
        
         | toast0 wrote:
         | I was working at Yahoo Travel from 2004-2011, and touched a lot
         | of ad stuff, although some of it was indirect.
         | 
         | Media/Display ads were normally CPM. Text ads were nearly all
         | CPC (regardless of adwords, yahoo's search marketting, or
         | y!travel's custom advertising market). Some display ads were
         | CPC. There was a small amount of ads where it was CPA (cost per
         | acquisition, advertiser only paid if the user purchased). CPA
         | seemed like it was growing, but details of sales tracking and
         | trust between parties probably gets in the way. Ocassionally
         | we'd have some deal where we would have to put in links that
         | might look like ads, but were unpaid.
        
           | no_wizard wrote:
           | CPA seems like the fairest model from my laypersons vantage
           | point.
           | 
           | Is there a reason this isn't more popular on its face? Only
           | paying for an ad when it _works_ seems like you could charge
           | more for the _when it works_ part as a service (in this case
           | Yahoo Ads or Google Ads) but it allows businesses to run ads
           | at a higher rate if they 're willing to give up more money on
           | impression (where impression = someone buys)
        
             | toast0 wrote:
             | The big issue with CPA is attribution. It's one thing if
             | you see the ad, click through, and make a booking in a
             | single session. That's easy to attribute, if all the
             | parties involved trust each other to do the tracking.
             | (Parties include the advertiser, the publisher, the ad
             | network(s), maybe even the advertising agency)
             | 
             | But what if you clicked through the ad, and then close the
             | window, but later come back and book through the advertised
             | site? Now we also need to have come to an agreement about
             | 'lookback window'. Maybe a fair lookback window is
             | different for different markets.
             | 
             | But it gets worse. What if you clicked through the ad on
             | your phone, and then booked on your desktop? No tracking.
             | Or even worse, what if it's a brand ad, and you come into
             | the physical store and buy? Definitely no tracking. (well,
             | some people try to get tracking for that, but it's pretty
             | iffy)
        
         | DudeOpotomus wrote:
         | No it wasn't but with a CPM you can actually optimize the ads
         | for better results since the click is the only real measure of
         | successful ad placement. Everything else happens after a click,
         | so getting to the click is the most important target.
         | 
         | As for %. They're bringing the customer, providing the tool,
         | the payments and the collection of the money. All the publisher
         | is doing is placing some code on their site. So 32% is actually
         | a lot cheaper than a publisher hiring their own sales staff,
         | buying their own ad servers, collecting and sorting the
         | payment.
         | 
         | Just so you know.
        
           | throwaway20222 wrote:
           | I wonder if it would be cheaper if there were more
           | competitors to google in the market than there are currently.
           | 
           | There are many things that I could outsource that would be
           | cheaper than doing myself (build/buy a car. Buy a
           | cheeseburger as opposed to producing all the ingredients
           | myself.) I am equally interested in what that 32% fee would
           | look like in a more open market and then say if it is cheap
           | or expensive.
        
             | jsnell wrote:
             | Isn't that exactly what this is addressing?
             | 
             | This is splitting up AdSense such that any third-party buy-
             | side operation that wants to use AdSense as the network is
             | on equal footing with Google's own buy-side using AdSense.
             | If anyone else can run that side of the equation better or
             | for cheaper, they can now do so.
        
             | DudeOpotomus wrote:
             | There are and have always been lots and lots of options.
             | It's up to the publisher to decide who they work with. But
             | with the scale that Google holds, it's hard to compete with
             | their money as they own the market and have a black box
             | monopoly - there is no way to know what the actual floor of
             | the bid is for instance, its set by Google, arbitrarily.
             | 
             | In other words: They say it costs $5 per click or $25 CPM,
             | they just make that figure up. There is no real market
             | driving that cost. It's 100% made up to maximize Google's
             | profits.
        
           | t0mas88 wrote:
           | A lot of ads aren't about a click and direct transaction.
           | FMCG brands run ads just to increase brand exposure all the
           | time, there is no e-commerce environment to buy a can of beer
           | or a tube of toothpaste after the click.
        
         | lisper wrote:
         | AdWords launched as CPM.
         | 
         | Source: I was the lead engineer on the first release of
         | AdWords.
        
       | crowcroft wrote:
       | The unintended consequence of paying per click is that it heavily
       | incentives bot fraud, despite what Google might say about
       | 'amazing performance' (Taboola is also a CPC model for context).
       | 
       | This is also another step towards unifying/supplanting the
       | 'Google' ad network and DoubleClick.
        
         | Scoundreller wrote:
         | If clicks can be botted, why can't impressions?
         | 
         | What this does kill is a small time publisher opening up their
         | own website while waiting at the Apple Store and clicking some
         | ads they know will pay a lot.
         | 
         | Not that I'd ever do such a thing.
        
           | crazygringo wrote:
           | Is it just a question of scale?
           | 
           | You can easily have 100x or 1000x more impressions than
           | clicks.
           | 
           | So detecting fraudulent clicks is much harder than fraudulent
           | impressions, in terms of a _proportion_ of fraud, just
           | because there 's so much less of a baseline genuine signal.
           | 
           | E.g. 20 fraudulent clicks out of 40 total clicks per day, who
           | can tell? But 20,000 fraudulent impressions out of 40,000
           | total, now you can do a lot more pattern recognition to
           | filter them out.
        
             | Scoundreller wrote:
             | If those 20 fraud clicks didn't come from a source similar
             | to 2000-20000 pageviews, they should be able to pick out
             | something happening.
             | 
             | Like. You're right: it's easier for a small-time fraudster
             | to do cpc fraud, but they should still be able detect
             | suspicious page views, whether there's a click involved or
             | not. At cpc large scale fraud, there's a lot of data either
             | way.
        
               | crazygringo wrote:
               | Not necessarily at all. The profile of people who click
               | on an ad may be very different from those who just see
               | it.
               | 
               | The point is that small numbers just don't let you make
               | confident conclusions period.
        
         | pests wrote:
         | I am really curious about the long term result of the Google
         | and DoubleClick merger. I saw a commentor here a few weeks ago
         | calling it a "reverse-takeover" of Google by DoubleClick. I was
         | around and remember that era fondly so just wondering what was
         | going on behind the scenes and what long-term effects it had.
        
       | josephjrobison wrote:
       | Another tweak to the infinite money glitch
        
       | josefresco wrote:
       | So, like Facebook advertising? Honestly I don't trust a single
       | number Google gives me in Google Ads so this probably isn't much
       | of a loss/change.
        
         | varispeed wrote:
         | Regulators should at very least force Google, Facebook and
         | other to use independent corporations for metrics and force
         | them to be publicly available for audit.
        
       | vizzah wrote:
       | How this works better for advertisers? I constantly see full-page
       | ads on mobile devices within apps and web sites. I ignore them
       | and click [x] to close. Is this going to count as an impression
       | now and earn revenue?
       | 
       | On this blog post Google says: "Publishers in our ad network are
       | required to adhere to both our AdSense policies and the Better
       | Ads Standards which do not allow practices like pop-ups or
       | interruptive ads that take up the majority of the screen."
       | 
       | But full page ads which interrupt your flow are a standard on
       | AdSense.
       | 
       | Impressions
        
       | JohnMakin wrote:
       | > For years, AdSense has been transparent about the fee we charge
       | for our service, which is consistent with industry rates. When
       | publishers have chosen to use AdSense to monetize their content,
       | they have kept 68% of the revenue.
       | 
       | Unless, of course, when you go to cash out you run into their
       | absurd KYC that will arbitrarily get rejected (you only get 1
       | chance), or they cancel your account for _reasons,_ and there is
       | absolutely no recourse.
       | 
       | They are happy taking your business before that though, of
       | course.
        
         | _rrnv wrote:
         | Happened to me too when i was a student, earned $300, tried
         | withdrawing and they just froze my account, for "fraud clicks".
         | It's Google's long tail business model to not filter fraud out
         | on the go and instead just lead small site owner on. On a
         | global scale I expect billions in additional revenue, but no
         | global court to challenge Google with a class-action. Maybe
         | someday...
        
           | pests wrote:
           | I earned a couple hundred with them too when I was young.
           | Never claimed it. They eventually released it to my states
           | unclaimed property system and a decade later I got it from
           | that.
        
           | JohnMakin wrote:
           | They got me on a hobby site for about $5k. No real reason
           | given, just rejected my ID verification with no appeal
           | possible. hundreds of similar stories out there
        
             | miohtama wrote:
             | There was an era when Google's slogan was "Don't do evil."
             | 
             | It was so long time ago that most of have not even heard
             | about it today.
        
               | pie420 wrote:
               | Don't be evil.
               | 
               | Funny how even you don't really remember it
               | 
               | https://en.wikipedia.org/wiki/Don%27t_be_evil
        
               | pixl97 wrote:
               | Don't be [caught doing] evil.
               | 
               | Someone just paraphrased that in the company memo.
        
               | olliej wrote:
               | Yeah it's not been a thing a google for at least a
               | decade. When I went to work for them the onboarding did
               | not have that phrase anywhere in any of the documents
               | (onboarding, training, or orientation) - and I explicitly
               | searched for it.
        
               | SquareWheel wrote:
               | They didn't ask you to read the Code of Conduct? It's
               | been in there from the beginning.
               | 
               | https://abc.xyz/investor/google-code-of-conduct/
        
             | plagiarist wrote:
             | I'd go to small claims over $5k.
        
         | conradfr wrote:
         | It happened to me for no good reasons in 2008.
         | 
         | Nowadays I have a side projects with Adsense on it, using
         | another Google account, which I have to use in incognito mode
         | because otherwise it links me to the other account that I'm
         | still using and rejects me.
         | 
         | Also, for a service that processes billions, it still does not
         | offer a developer mode so when your implementing the ad script:
         | 
         | - You're not always getting ads so can't be really be sure your
         | code and UI are OK.
         | 
         | - You risk being penalized / kicked out because you click on an
         | ad n times by mistake
         | 
         | Edit: also there's a semi-scam that has been running on Adsense
         | for years. Those "3 steps to get your video/software/etc click
         | here" ads. There is a lot of variant.
         | 
         | IIRC they trick people into subscribing to a fake service
         | through your phone bill.
         | 
         | They're very hard to block as a publisher as they come from A
         | LOT of accounts.
        
         | _jal wrote:
         | Yeah, the business model is remarkably similar to the credit
         | card fraud reshippers. Keep your mules busy until is time to
         | pay out and then ghost them.
        
         | tedivm wrote:
         | This happened to me when I was in college and cost me a few
         | hundred dollars. It caused so much stress, and no human was
         | willing or able to help me. As far as I'm concerned Google
         | robbed me.
        
           | jacobn wrote:
           | Small claims court? May be too late now of course.
        
         | dumbfounder wrote:
         | They have several thousand of my dollars. Every several years I
         | get a notice from an auditor that I have money and I just need
         | to login and get it. Except I can't login, and I can't get it.
        
       | jdalgetty wrote:
       | I think this a way for them to pay small publishers less.
        
       | GoRudy wrote:
       | Google's premium ad network for professional publishers is AdX
       | which is run via the google ad manager product and has been on a
       | CPM basis for over a decade. Only small sites are on adsense
       | which pays CPC.
       | 
       | The net change here is probably almost nothing, just the smaller
       | sites that never use google ad manager will see the change but
       | any publisher of note will have been operating with this for as
       | long as they can remember.
       | 
       | With click through rates continuing to decrease it's likely they
       | needed to make this change to keep the long tail sites happy and
       | generating some revenue, they would back out the CPC to an
       | effective CPM anyway.
       | 
       | Me:13+ years in digital publishing and advertising.
        
       | wyncent wrote:
       | If Google will pay per view, what incentive will Google have to
       | personalize ads?
        
         | thornewolf wrote:
         | google pays money: per view on publisher website
         | 
         | google gets money: per click on publisher website
         | 
         | google is incentivized to maximize click chance per view in
         | this system
        
       | varispeed wrote:
       | I just hope EU gets properly onto this racket and forces Google
       | to close Adsense.
        
       | londons_explore wrote:
       | Per impression payments are more vulnerable to fraud...
       | 
       | Hide the ad unit in some hidden background layer and you're still
       | gonna get paid for impressions even if no human eyeballs see
       | it...
       | 
       | And you'll get away with it too, because as long as you have
       | millions of web pages and each one only gets a little traffic,
       | there won't be enough statistical power to see that they are
       | underperforming vs just unlucky that none of the first 85
       | impressions led to a click.
       | 
       | This is already rampant in mobile games.
        
         | Mechanical9 wrote:
         | Doesn't the price per impression still get adjusted based on
         | performance?
        
           | londons_explore wrote:
           | Yes, but only when there is enough performance data. The
           | reality of the web is there is a huge long tail of sites that
           | don't get enough impressions to get a good gauge of click
           | through or conversion data - and the fraud makes use of that
           | to make money.
        
       | ss64 wrote:
       | I wonder if this is related to the current YouTube vs uBlock war?
       | 
       | Could be that a bunch of people have given up on ad-blocking and
       | are just blindly clicking every single ad then immediately
       | closing the new tab to get to the video.
       | 
       | Result on CPC will be ad payments going through the roof, but
       | actual conversions trending down to zero.
        
         | lxgr wrote:
         | Yes, this seems to be a thing: https://adnauseam.io/
        
       | colesantiago wrote:
       | Why can't Google transition to shut down Adsense, Google
       | Analytics and the rest of their other products?
       | 
       | Everything they announce goes to their biggest product the Google
       | graveyard, so Google might as well send it all over there to
       | spare us more with their destruction of the web.
        
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       (page generated 2023-11-02 23:00 UTC)