Google Lifts The Lid On Ad Revenue Sharing

Seattle, USA - Aug 19, 2019: The new Google building in the south lake union area at twilight.
SHARE
THIS



Google has drawn back the curtains on its ad tech, revealing just how much money news publishers make when they advertise with the tech giant.

In a series of blogposts released overnight, Google VP of global partnerships Bonita Stewart and Google VP and GM of apps, video and display Sissie Hsiao shared how top publishers monetise content using its advertising products Google Ad Manager, Google Ads and Display & Video 360.

The data suggests publishers have been able to regain the vast majority of their ad spend when using Ad Manager to sell ads directly.

“In analyzing the revenue data of those top 100 news organizations, we found that on average, news publishers keep over 95 per cent of the digital advertising revenue they generate when they use Ad Manager to show ads on their websites,” said Stewart.

“This analysis reflects the average fees retained by Ad Manager, and does not include fees that may be paid to other platforms and services.”

The research also revealed what happens when publishers choose to use Ad Manager to sell ads programmatically.

“When an ad is shown programmatically through Ad Manager, news publishers keep over 80 per cent of the revenue,” said Stewart.

When it came to its buying portals Google Ads and Google Display & Video 360, publishers received slightly less.

“Even when ads flow through both our buy-side and sell-side services, publishers receive most of the revenue,” said Hsiao.

“In fact in 2019, when marketers used Google Ads or Display & Video 360 to buy display ads on Google Ad Manager, publishers kept over 69 per cent of the revenue generated.”

Hsiao added that when advertisers use Display & Video 360  to buy ads on third-party publisher or sell-side platforms, Google charges a standard fee of 15 per cent.

why does this matter?

The revelations from Google comes as calls for more transparency in ad tech grow.

Earlier this year the ISBA in the U.K. and PwC released a report which suggested 15 per cent of programmatic ad spend could not be accounted for in the ad tech supply chain.

The report prompted calls for ad tech suppliers to share more of their data.

In Australia, the ACCC is also currently in the midst of an inquiry into the Ad Tech industry.

Early submissions have called for market-led initiatives to enhance transparency between partners in the industry.

There is also the matter of the ACCC’s upcoming bargaining code between tech giants and media companies, which will see Google and Facebook ‘pay for news’.

Media businesses have been arguing tech giants unfairly monetise news content and have called for annual payments ranging from $600 million to $1 billion.

Google has argued there is a “two-way value exchange” with these businesses.

 

 

Please login with linkedin to comment

Ad tech Google

Latest News

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own
  • Advertising
  • Campaigns

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own

Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]

Are You Paying Too Much In Search Marketing?
  • Partner Content

Are You Paying Too Much In Search Marketing?

Are you paying too much for search marketing? Discover the awful truth here. Or, alternatively, look at the invoice.

Partner Content

by B&T Magazine

B&T Magazine
Nine APAC Finalists In One Club’s Young Guns 19 Competition
  • Advertising

Nine APAC Finalists In One Club’s Young Guns 19 Competition

Nine creatives from APAC are among the 94 finalists from 27 countries in The One Club for Creativity’s prestigious Young Guns 19 competition, celebrating international creative professionals age 30 or younger. The finalists from APAC are: Hiu Ching Kung, graphic designer, Hong Kong Lam Ieong Kun, graphic designer, illustrator, indego design, Macau Raxenne Maniquiz, graphic designer, illustrator, Santa Maria (Philippines) Kiyotaka […]

Adflow’s Regional OOH Coverage Expands By 60%
  • Media

Adflow’s Regional OOH Coverage Expands By 60%

OOH transit company Adflow has announced the success of the first phase of its regional expansion program. Adflow’s regional footprint has increased by 60 per cent to now include 65 regional locations. With 9.1 million people living regionally in Australia (growth of 1.1 per cent experienced in the 19/20 Financial year) and most regional centres […]

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion
  • Technology

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion

Freshworks, a leading software company, has started trading on the Nasdaq Global Select Market, marking an important milestone for the company. The company priced its IPO at US$36 per share (AU$49.76), raising about US$1 billion (AU$1.4B), resulting in a total market capitalisation of AU$13.7 billion  (US$10B). Freshworks, which was founded in India, has strong roots […]

SLIK Announces Four New Key Hires
  • Marketing
  • Media

SLIK Announces Four New Key Hires

Independent creative agency, SLIK, has made significant changes to its full service creative offering with four hires across management, creative and production.

How Retailers Can Maximise Their Results This Sales Season
  • Marketing
  • Technology

How Retailers Can Maximise Their Results This Sales Season

Black Friday Cyber Monday (BFCM) is the biggest player in the holiday shopping game and Google’s most recent research suggests consumer interest for the peak sales season starts much earlier than retailers may realise. The pandemic has fundamentally changed buyer behaviour over peak sales season, with Google suggesting that global consumer interest in Black Friday […]