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What is Smart Pricing?

vbignacio
Sat 3 March 2007, 09:31 am GMT +0100
How does Smart Pricing work? How are we affected as an Adsense publisher?

olaf
Sat 3 March 2007, 10:58 am GMT +0100
How does Smart Pricing work? How are we affected as an Adsense publisher?

where do you see this function?

vbignacio
Sat 3 March 2007, 11:17 am GMT +0100
quoted from the Google Adwords Team:

How smart pricing works
We are constantly analyzing data across our network, and if our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.

We take into account many factors such as what keywords or concepts triggered the ad, as well as the type of site on which the ad was served. For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.

Google saves you time and hassle by estimating the value of clicks and adjusting prices on an ongoing basis. With improved smart pricing, you should automatically get greater value for clicks from ad impressions across our network, all with no change in how you bid.

olaf
Sat 3 March 2007, 11:25 am GMT +0100
Ok, I saw that feature and noticed as advertiser the it's not very expensive to get thousand of impressions and also the click costs are in some cases not very high.

I think it works like that, just in case some will pay max 30 cent for click and others are paying less, google will reduce the costs for you automatically.

You can see that very much if you advertise in other languages then english or countries then the US. I think thats one of the reasons why your earn not so much with ad impressions in other countries

vbignacio
Sat 3 March 2007, 11:40 am GMT +0100
"...a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras..."

the cost per click depends on the site that displays the ad. i wonder how they gauge what site converts and what doesnt.

olaf
Sat 3 March 2007, 11:48 am GMT +0100
"...a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras..."

the cost per click depends on the site that displays the ad. i wonder how they gauge what site converts and what doesnt.

:( doesn't all the text because I thought that saw that information before...but I don't think that this will work all the time, example:
a proxy topsite is showing only proxy related ads while the click earnings in adsense are sometimes very good and sometimes very bad

vbignacio
Sat 3 March 2007, 11:58 am GMT +0100
heres more that i found out digging thru the net, quoted from a Jensense post:

-Smart pricing affects an entire account. It is not on a per page or per site basis.

-One poorly converting site can result in smart pricing impacting an entire account, even sites completely unrelated to the poorly converting one.

-Smart pricing is evaluated each week. So removing ads from sites you suspect are converting poorly could result in seeing an adjustment to a higher smart pricing percent in as little as a week.

-Smart pricing is tracked with a 30 day cookie, so you could be rewarded for new conversions that saw the initial click from your site up to 29 days earlier.

-Image ads are also affected by smart pricing.

-With smart pricing, an advertiser could end up paying less than their minimum bid, which would theoretically include the minimum bid price available, meaning publishers earn less for even the minimum valued clicks.

-Conversions for smart pricing publisher accounts are tracked by those advertisers who have opted into AdWords Conversion Tracking.

Nikolas
Sat 3 March 2007, 01:09 pm GMT +0100
This is related more to convertions. Google is analyzing data to define the quality of the traffic that an adsense site sends. When you have adsense ads on your site, google knows a lot about the traffic you get, where you get it from, and in addition to the fact that they know what your content is about, they can decide if that site can send quality traffic to a keyword.

So if you have a proxy web site, you still displaying ads on a subject that is very relative to your content, but as those people who are using the proxy are not actually a specific target group (as they can be school boys/girls or people that browse p0rn from the office, or people from countries that have restrictions, etc.) google will never give you high paying clicks on these sites.

I bring up this example because this was the case for all the proxies I owned, while my "quality content" web sites get much  more expensive clicks.

vbignacio
Sat 3 March 2007, 03:23 pm GMT +0100
they said smart pricing affects the whole account...

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