Google AdSense changes publisher payouts. Costs (and benefits) of productive artificial intelligence AdExchanger

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Starting early next year, Google AdSense publishers will see their payments change from a per-click to per-impression metric, the first change to its revenue-sharing model in 20 years.

Pay-per-impression is the industry standard for how publishers are paid, writes Dan Taylor, Google’s vice president of global advertising. blog post. And Google estimates that publishers will keep the same percentage share of every ad dollar spent with Google, about 68%. A Google Ads buyer typically sees about 15 cents go to Google DSP and the AdSense network receives the remaining 20%, leaving 68 cents.

When a third-party DSP or ad buying system is used, the publisher keeps 80% of the revenue. after Third-party technology is interrupted. Depending on the fee the DSP charges, the advertiser can get more or less than 68 cents on the dollar.

However, advertisers have no change in their buying model. They still bid and pay based on clicks and conversions, and it’s up to Google to make sure they pay for that change from CPA to CPM.

Big Techs AI Ouroboros

Big Tech invested big dollars in productive artificial intelligence. and observing return on investment in the form of cloud computing costs, The Wall Street Journal reports.

As of 2019, Microsoft has pumped $13 billion into OpenAI, creator of ChatGPT and DALL-E. Instead, OpenAI exclusively uses Microsoft Azures servers for training and publishing its products. Azures revenue grew 29 percent year-over-year (3 percent from AI), according to Microsoft’s earnings report last week.

Meanwhile, Google invested $2 billion in OpenAI competitor Anthropic, which committed to spending $3 billion on Google Cloud. Amazon also invested $4 billion in Anthropic, which will spend at least $4 billion on AWS over five years.

Artificial intelligence companies are not currently profitable. But, as adoption increases, businesses and user accounts will have to pay more for data usage.

So, even if AI companies are not profitable, they are profitable for Amazon, Google and Microsoft. Additionally, exclusive contracts provide insights into the software and strategy best suited for productive AI.

Metas’ open source generation AI product is free. type. Sure, Meta doesn’t make anything, but fees are paid to whatever cloud platform the customer uses.

So who wins? Again, cloud operators

Just shop around

Last week, Shopify continued its reluctant effort at product discovery and recommendation by quietly launching a product. Online market Where buyers can browse merchant listings using a chatbot search service.

Previously, this functionality was only available in the Shopify app store.

The marketplace does not have sponsored listings and does not have the product depth of Amazon. But as adoption grows, Shopify is always in the awkward position of favoring certain sellers or items.

These are some of the retail decisions Shopify hasn’t had to make since being a neutral software provider, writes Josos Kazioknas, founder and CEO of Pulse Marketplace. blog post.

Shopify’s marketplace is buried as a sub-menu of the Shop.app URL. That is, Shopify doesn’t exactly shout about it.

Arm the rebels has been a rallying cry for Shopify, writes Kazioknas. But, at some point, it has to cross the retail Rubicon. Some rebels will start getting much better weapons than others.

Shopify will make decisions to promote certain merchants and products based on merit. But that’s probably partly because some pay for heavier weapons.

But wait, there’s more!

Lina Khan defends FTCs record of cracking down on illegal mergers. [Bloomberg]

Google uses public safety arguments to deflect competitive criticism. [Digiday]

Confessions of a social media manager tasked with cracking down on online critics through his accounts. [Digiday]

Advertising, public relations and related occupations hit their highest level in October, according to Labor Department figures. [Ad Age]

Book titles are bolstered by the Hulus series from Barnes & Noble. [Marketing Brew]

You are hired!

SmartFrame Technologies appoints Alan Keppel as Chief Commercial Officer. [Adweek]

Recurrent Ventures has named Andrew Perlman as CEO for the third time in three years. [Adweek]

#Google #AdSense #publisher #payouts #Costs #benefits #productive #artificial #intelligence #AdExchanger
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