If Google is doing smart pricing and the cost of your clicks depend on how well you're converting, doesn't it stand to reason that if someone shows that they are converting while you don't they'll pay for more the right websites?
For example, lets say I sell widgets and on a particular hobby widget site I convert really well, but I don't convert very well on a hobby made for adsense site.
And, to continue the example, lets say I don't tell Google I convert well on the hobby site but someone else does.
Wouldn't Google give better placement to the guy who is showing that he's converting on the hobby widget site?
Bump? Anyone? Awa? :)
Blaze, it's been a 14 hour day so far, and hours to go. So I'm a bit fuzzy. ;)
However, you’ve got it sort of backwards here:
If Google is doing smart pricing and the cost of your clicks depend on how well you're converting...
This is not correct. With smart pricing, the price you pay as an advertiser depends on how well the site your ad shows on performs - not how well you as the advertiser convert.
Excerpted from the FAQ:
...smart pricing automatically adjusts the cost of a content click, which boosts advertiser ROI on content. So, while you just set one maximum CPC, if our data shows that a click from a content page is less likely to turn into actionable business results - such as online sales, registrations, phone calls, or newsletter signups - we reduce the price you pay for that click...
Quoted from this page:
[adwords.google.com...]
Hope that clears it up.
AWA
So, while you just set one maximum CPC, if our data shows that a click from a content page is less likely to turn into actionable business results - such as online sales, registrations, phone calls, or newsletter signups - we reduce the price you pay for that click...
Other than using advertiser conversion data how else could Google possibly know how likely a click is going to turn into actionable business results?
Anyone? eWhisper? SkiBum?
The general consensus among pretty much everyone on WebmasterWorld is that Google is using advertiser conversion data and now AwA is telling us that this isn't the case?
This is shocking news!
If I am and a few people are the only ones who are getting ads shown up on a particular websites and we're all showing that the site doesn't converts well (even though it is!) then our ads won't be showing up on that site for long.
But if we all *are* showing that the site converts well then we, as a group, will have our ads show up on that site.
Why isn't Google telling people to make sure their conversion is on if they want to get good placement?
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.
The information isn't released as to what Google considers the buying cycle and so forth to be. In this case, I agree with them keeping the information secret. It would be easy for AdSense publishers to change the way AdSense reads themes from 'Camera Reviews' to 'Compare Camera Prices' and inflate their revenue.
For example, lets say a group of advertises are advertising under a particular 'theme' and none of the do propery conversion tracking for that 'theme'.
Then wouldn't that theme be shown to not convert particularly well? If a particular theme isn't very tech savvy, I could see that definitely being the case.
I guess here's the question: does smart pricing use advertiser conversion tracking?
Everything I read says yes. Therefore, unless the conversion data is being tracked properly, smart pricing will not work.
does smart pricing use advertiser conversion tracking?
If it does; I would have thought that it can only be based on statistical results across many advertisers, and therefore if you weren't tracking properly it shouldn't harm your campaign at all.
Remember that advertisers are in complete control of where the conversion tracking HTML goes (subject to T&C's), and so with a bit of serverside scripting (or JavaScript for that matter) could return any conversion rate they wish back to Google.
