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Old 10-30-2005, 03:39 PM   #1

Join Date: Nov 2004
Location: St. Louis, Missouri USA
Posts: 3,015
Arrow AdSense smart pricing

A lot of people have been upset over smart pricing and many of them think that it is hurting their AdSense earnings.

Google has decided to give out some information about smart pricing and have said more than they often say about things AdSense publishers are wondering about.

It is very interesting the importance that is placed on content. Experienced publishers have learned that having a lot of quality content and adding to it on a regular basis does wonders. Content and having lots of it is the solution to so many problems.

It is sad to see that there are those who don't believe in content or don't want to put effort into it and decide to use various shortcuts which end up not helping them or possibly even hurting them.

Here is what Google has to say about smart pricing.
The facts about smart pricing

We've noticed a lot of talk recently about the phenomenon commonly referred to as 'smart pricing'. There are some misconceptions out there about this, so we wanted to provide a few facts about smart pricing and how to ensure you're maximizing your revenue.

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.

Last edited by Larwee; 10-31-2005 at 12:45 AM.
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Old 10-31-2005, 12:03 PM   #2
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Join Date: Sep 2005
Posts: 17

It seems the big networks just see affiliates as as way to make money. I usually prefer dealing with smaller networks who are hungry and usually give more benefits. I mean of course they want to make money but it is more personal. Google views affiliates as a way to make sponsors pay more.
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