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Smart pricing strategies

Nikolas
Fri 16 March 2007, 11:24 am GMT +0100
As you already know adsense has recently started using the "smart pricing" algorithm which actually gives you better or lower prices per click in relation to the conversions those clicks are creating.

Several marketers believe that this is affecting your hole adsense account. So a good point is that if you display adsense ads only to the high converting pages of your sites, the earnings will be higher than before, and you will also have more advertising space to use with other networks or inhouse advertising.

So I begun a small experiment. My target is to deliver adsense ads only on high converting pages, instead of sitewide ads. That means that the #1 step for this little experiment is to find which pages are converting more.

It is impossible to know which of your clicks produce more conversions, but there is something that you can count on: earnings per click. Having channels for almost every part of my sites, I realized that there are some pages/sections that earn much more than others. Having in mind that those different pages are using similar keywords - or if you prefer they are in the same niche - it is obvious that these are the clicks we want to keep. So I removed adsense from the other pages, and especially from the forums, which have low CTRs and earnings per click.

I think it is very soon to say anything regarding this experiment, but I think it works. Right now I have the same earnings with less impressions. I will post more when I have more results, but in the meanwhile if someone wants to join me in this experiment please share your results here :)

olaf
Fri 16 March 2007, 01:47 pm GMT +0100
great reasearch Nick, but also a lot of work :(

I think I should remove all the unefficient ads first...

vbignacio
Sat 17 March 2007, 12:07 am GMT +0100
"Since one poorly converting site can result in smart pricing impacting an entire account. Removing ads from sites you suspect are converting poorly could result in seeing an adjustment to a higher smart pricing percent."

But yeah, plenty of work, unless you have your ads served in an include file for easy replacement.

TrackbackBot
Sat 17 March 2007, 10:30 pm GMT +0100

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Recently I discovered a new technique which eliminates the impact of the smart pricing algorithm which have recently introduced by Google. As you may not know what smart pricing is, I will start with the basics :
Some time ago, the adwords added a new ...

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