Ad network: Google provides insights into its fee model

For the first time, Google provides insights into the fee structure of its advertising network, the demand-side platform “Display & Video 360” and the Ad Manager, the AdTech solution for publishers. It is exciting to see what really gets from the advertising dollar to the publisher.

Google opens its black box and, for the first time under the supervision of the regulatory authorities, gives insights into the fee structure of its advertising network Google Ads, the demand-side platform “Display & Video 360” and the publisher technology Ad Manager. There has been speculation about the model for a long time, not least because hidden fees are not uncommon in the online advertising industry.

In Blog posts Google now explains how the fees are distributed:

When an advertiser spends $ 1 on Google’s advertising network, an average of 69 cents went to the publisher last year (through the Ad Manager). According to Google, if publishers use the Ad Manager platform to sell ads directly to advertisers, they would keep more of the earnings.

“It has recently been rumored in the industry that half of the display advertising revenue is kept by AdTech providers themselves. We cannot speak for the many other companies in this area, but Google does not.” , emphasizes Sissie Hsiao, Vice President and GM, Apps, Video and Display Advertising at Google.

Google Ads takes an average of 14 cents from every advertising dollar an advertiser spends.

What arrives from the advertising dollar

Source: Google

A large part of the income that Google generates from its display advertising products, according to its own information, goes towards covering the costs of operating the “complex and constantly developing business”. This includes building and maintaining data centers, investing in IT research, and working on new technologies and innovations.

Demand-side platform “Display & Video 360”

Google’s demand-side platform “Display & Video 360” charges an average of 13 cents on every advertising dollar spent. The Google Ad Manager then charges the publisher an average of 18 cents.

Google’s demand-side platform “Display & Video 360” charges an average of 13 cents on every advertising dollar spent.

Source: Google

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