1. Many factors determine the price of an ad
More than conversion rate goes into determining the price of an ad: the advertiser's bid, the quality of the ad, the other ads competing for the space, the start or end of an ad campaign, and other advertiser fluctuations.
2. Clickthrough rate doesn't affect advertiser return on investment (ROI)
The percentage of clicks that convert for an advertiser is the most important factor in an advertiser's ROI, so it's not only possible, but common, to have a low CTR and a high advertiser conversion rate. It's also possible to have a high CTR and a low conversion rate. Don't remove the AdSense code from your site just because it has a lower CTR - it may be one of your best converting sites.
3. Google doesn't make money from 'smart pricing'
In fact, we make less money, since the cost to advertisers is reduced in order to provide a strong ROI. Ultimately, this leads to higher payouts for publishers by drawing a larger pool of advertisers and rewarding publishers who create high quality sites.
4. Remember the old chestnut: "Content is King"
The best way to ensure you benefit from AdSense is to create compelling content for interested users. This also means driving targeted traffic to your site -- advertisers don't gain as much ROI when paying for generic clicks as they do for quality clicks that come from interest in your content. Good content usually equals a good experience for user plus advertiser, which can be much more valuable than CTR.
Keep in mind that like most Google technology, our system for calculating advertiser pricing gets updated regularly. We're constantly improving our ad products to benefit both the publisher and advertiser communities; what benefits one side ultimately benefits the other.
9 comments:
I don't know what the big deal is. If it is more transparent and honest, I guess it is the better option. Of course it is easy for me to say, as my revenue actually increased after this latest change.
More transparency is required from Google. My account was disabled, for reasons best know to Google. However, I now want to actually know if all money taken from advertisers was actually returned back. Cause if I am responsible for certain terms, Google should be suable if the money is not returned to the advertisers. I have reports on the advertisers on my site. I will contact them and if money has not been returned, lets see what the consumer court has to say. Google themselves are so opaque about their policies. And they expect people to be transparent.
This blog entry says: "Clickthrough rate doesn't affect advertiser return on investment (ROI)".
Okay, but does it affect the publishers earnings per click? A simple yes or no will suffice.
My eCPM has tanked over the last few weeks and my earnings have dropped by more then half, yet my traffic is still steady. I'm lead to believe that I have been smart priced but with no information to tell me where or when, I'm left with only one option in my eyes. I will have to take a chance and slowly start converting my ads to YPN or VCM, to see if any thing improves.
What ever! "We're constantly improving our ad products to benefit both the publisher and advertiser communities; what benefits one side ultimately benefits the other. We been running adsence for years and all we see is that we grow and yet we get less and less. What's very interesting is that near the end of the quarter, like clock work, we get way less money from google. I guess that's round about the time you guys need more "improvement to the ad product" to make "your" numbers for the stock holders. I don't buy it. You are right on one thing though "content is king" and Google adSense don't care. Remeber Do No Evil
Its cool advice to save Advertisers, SMART PRICING is the best option, long live ADSENSE
Hi Guys,
I agree and disagree with some of your comments regarding the "smart pricing".
My experience with Adsense shows that you have follow Google all published policies and terms and conditions then you will be on the top.
Just remember: Adsense is still the best ads provider for publishers in the market.
Adsense is more transparent than any other ad providers out there.
Please note: most of ads come from commercial companies that heavily rely on loans, overdrafts etc. from commercial banks, who are in deep recession at the moment. I am not surprised that my earning and probably earning of Google has dropped a bit due to the credit crunch.
Hi Guys,
The above Chinese message is a spam.
Cheers
im so Smart Priced wat can i do to revert it
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