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Thread: AdSense Smart Pricing

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    Karl's Avatar
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    AdSense Smart Pricing

    Smart Pricing is one factor which influences click values in AdSense. Ostensibly, Google’s Smart Pricing system helps to avert click fraud and give higher-quality advertising. Some AdSense publishers build web pages that can gather high-paying advertisements, even though the content of these fleeting sites are of very low quality, or even worthless. Any clicks on pages such as these do not translate into profit for the advertisers.

    The Smart Pricing system assigns click value per clicked-on ad. The click value is derived from various criteria (which are not completely disclosed to the public). Many publishers have hypothesized about what standards are comprised, some of which are:

    • CTR, or Click-through Rate
    • Impressions, which is based on the amount of site traffic, which in turn denotes site popularity (or ‘authority’)
    • Page Rank (another standard that shows the degree of ‘authority’)
    • Relevance of inbound links – if the sites that link to you have relevant keywords in both their content and advertisements
    • Relevance of the site, which focuses on the entire website (or just a portion or page) being devoted to a single subject
    • Site age, wherein some webmasters say that the longer your site exists, the larger your click values become
    • Size of the site

    The inclusion or exclusion of any of these factors has not been completely confirmed. When Google first started to promote Smart Pricing, they stated that particular clicks within the Google AdSense system undergo periodic price realignments. They also said that the method situates advertisements according to the ad performance, thus decreasing click cost to the lowest possible amount for an added boost over the competition. This implies that Google has the prerogative to lower click cost to match the value that advertisers get.

    Google: Their Statements on Smart Pricing

    Google says that they continuously manage and scrutinize any data that passes through its network. Thus, if the information deems that a click has low possibility of effecting a ‘concrete’ result (such as an actual sale, registration, or subscription to a newsletter), then the price paid for that click could decline. Content sites, among others, may show lower click costs due to this procedure.

    They also affirm that a number of issues are involved in computing click cost; such as the kind of site that displays the advertisement/s, and the subjects or keywords that activate the ads. An example of this is that one click on an advertisement for gaming console peripherals within a web page discussing gaming platforms could be worth significantly more, compared to the selfsame advertisement on a website talking about retro gaming cheat codes.

    Google takes over the continuous responsibility of gauging click values and approximating prices. Originating from the network’s ad impressions, the Smart Pricing feature should deliver better value for clicks without having to alter the bidding process.

    To site developers, the implications of the aforementioned statements point toward the significant factor of site relevance – thus rendering the creation of niche blog sites as better than sites with a mishmash of subjects. Many webmasters and site owners will notice that click values gradually increase of advertisements are displayed on a website which focuses on entry topics versus a web page showcasing ads for varying topics.

    What to Do?

    Again, as Smart Pricing is based on advertiser ROI, one needs to impact the latter by raising conversions after users click on the advertisement. As you cannot simply modify anything on the website of the advertiser, ensure that you get the maximum amount of conversion. ‘General’ advertisements have the tendency to perform poorly with AdSense, as these ads can get your site ‘smart-priced.’ You can:

    • Totally remove AdSense for 20 days to remove your site’s Smart Pricing,
    • Work with a different advertising program in the meantime,
    • Place AdSense on relevant pages after the 20-day duration,
    • ‘Section-target’ to render more pertinent ads,
    • Observe changes with AdSense channels, and
    • Utilize AdSense within niche-specific websites.

    Bloggers who work with AdSense need to be in-the-know concerning Smart Pricing. Aside from this, the old maxim stating that ‘content is king’ is always a good rule to follow. Google has already ‘given’ us quite a number of tips on Smart Pricing, which implies that advertisers will only be charged higher click values from pertinent, good-quality websites. Niche topics comprising high-quality content within blogs boosts the likelihood of success with AdSense.

  2. Thanked by:

    tmongy (6 April, 2009), TopDogger (12 April, 2009), Will.Spencer (6 April, 2009)

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