Google Ad Manager

Google's revenue share revealed

Google’s Revenue Share Unveiled

Recently, facing pressure from regulators, Google finally unveiled its buy-side and sell-side pricing policies. The numbers were shared in two separate blog posts, detailing the cut the company takes from both publishers and advertisers when transactions occur within its ecosystem. Fees across google’s ecosystem It’s no secret that Google charges the vast majority of advertisers based on their objectives (cost-per-action – e.g. a click, filling out a form, etc.). Publishers on the other hand are paid on a CPM basis, which is achieved by evaluating the potential of each impression and then converting it into a bid. Essentially, Google’s algorithm determines how likely it is for a particular impression (user) to meet the advertiser’s objective, and then assigns a CPM price to it. Obviously, there’s a lot of “converting” happening on the backend and results vary all the time. On average, however, Google says that publishers receive 69% of what advertisers pay for programmatic ads. How is that broken down? Here’s an example of how $100 ad dollars are distributed within the ecosystem: Google Ads charges advertisers 14%, which leaves us with $86. Then, Google Ad Manager takes a further 20% cut from publishers ($17), leaving them with $69. Source: Google Ad Manager When it comes to Display & Video 360 (Google’s enterprise solution for big brands), the end result is exactly the same, but on average, advertisers pay $13, while $18 are taken from the publisher’s side. There’s one thing in the blog post though that definitely catches your…

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First-Price Auction – What does it mean for publishers?

RTB; The Evolution of Programmatic Advertising The advent of RTB (Real-Time Bidding) in the late 2000’s changed the way digital publishers monetized their ad space forever. Auctions were introduced, enabled by technology, to bid on an impression-by-impression basis. Thus, replacing sequential CPM paid directly for ad space or fixed fee, sponsorship-focused strategies replicating print advertising. These auctions rely on a bidding system but unlike real-life auctions, where the highest bid wins after a series of bids, here, all bids happen at the same time. Traditionally, with a real-time auction, the highest bidder would, of course, win, however, only paying what the second-highest bid was.