Google stops AdSense monetization for Russian-based publishers

Google has officially announced that it's stop YouTube and Website monetization for Russian Publishers. This development does not only impact AdSense publishers in the country, Russian publishers on AdMob (the mobile advertising network that allows mobile app publishers to earn money) and AdManager (the ad management platform for large publishers who have significant direct sales) are also affected.

Google's restricting ad monetization for Russian publishers start on Monday August 12, 2024. Although, the company cited ongoing development as the cause but there's more to it which hasn't been disclosed.

Come to think of it, Russia is advancing its technological import substitution efforts, often driven by necessity. In the other day, the Russian government threaten to block YouTube by slowing down the server the within the country to darken freedom of speech, and in response, Google has blocked AdSense services for Russia.

"Due to ongoing developments in Russia, we will no longer be able to make payments to Russia-based AdSense accounts that have been able to continue monetising traffic outside of Russia," a Google spokesperson said. "As a result, we will be deactivating these accounts effective August 2024."

Google AdSense disclosed this information to publishers via Emails. It's stated in the Email that Google will disable all AdSense accounts registered in Russia, preventing them from earning income through monetization.

This affects Russian AdSense accounts and YouTube channels with Russia as the set country of residence, and the country cannot be changed in the settings. While account holders can still receive payments for earnings made in July, no further payments will be issued.

Google has been under pressure in Russia for several years, particularly for not removing content deemed illegal by Moscow. So, Google's decision to stop ad monetization in Russia is part of a broader series of measures the company has implemented since 2022 due to ongoing geopolitical tensions.

Although, Google has not clarified the reasons behind its decision to disable AdSense in Russia, but the pressure faced by the company in the country for years could potentially be the cause. Russia citizens have been using YouTube as Free-speech expression platform in the country which the Government didn't like. In addition to the pressure, a Russian lawmakers blame the slowdown of YouTube on Google, claiming that the company failure to upgrade its equipment since the 2022 Ukraine invasion.

Recall that in March 2024, Russia enacted a law prohibiting any form of advertising on publications, including YouTube channels, that are labeled as "foreign agents." The Russian government uses the "foreign agent" designation to target individuals and organizations, such as anti-Kremlin politicians, activists, and independent media, who are perceived to receive funding or influence from foreign sources. Being labeled a "foreign agent" restricts their ability to earn revenue from advertising, effectively limiting their financial resources and reach.

In response to these, Google stopped serving ads in Russia in March 2022 and halted monetization of content supporting Russia's war in Ukraine. It has also blocked over 1,000 channels and 5.5 million videos, including state-sponsored news, and over 5.5 million videos.

However, Russian lawmaker Anton Gorelkin - deputy head of Russia’s parliamentary committee on information policy, has criticized Google for dividing the online space and cutting off monetization for Russians. Google has continued to segregate citizens according to nationality, completely closing off the possibly of monetisation for Russians," Gorelkin said on Telegram.

Impact of the Ad-monetization Exit in Russia

Google's decision to halt AdSense monetization in Russia significantly impacts the country's digital economy, particularly affecting content creators, publishers, and app developers who rely on ad revenue. This move cuts off a major revenue source for Russian creators who have been monetizing both domestic and international traffic, potentially leading to substantial financial losses and forcing them to seek alternative monetization methods.

Beyond the immediate impact on individual creators, Google's withdrawal could have broader implications for Russia's digital economy. As a dominant player in global digital advertising, Google's exit may create a gap that local Russian ad networks might struggle to fill, possibly leading to reduced digital ad spending and affecting the availability and quality of online content in Russia. This situation may drive the development of Russian ad tech but could also further isolate Russia's internet (RuNet) from the global digital landscape.