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Is Smart Pricing too smart for its own good?

Is this a glitch?

         

Clark

4:04 pm on Oct 17, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



This may have been mentioned here before but I didn't see it. Let's say you install the code adwords gives you to determine ROI, they also use that to help their algo with smart pricing on adsense sites. Doesn't this have the exact opposite effect you want it to?

Shouldn't we assume that you are "derewarding" yourself by telling google what pays off for you? That they use this data in their adsense algos, effectively putting more expensive ads on that site. Increasing their internal value for that keyword. Whereas someone who manages their own ROI data internally has an advantage over the naive people sharing that data with G?

I know some people here have really analyzed this and I only use adwords for testing, so I could be way off.

poster_boy

4:46 pm on Oct 17, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



How would Google know the value of each conversion? Google doesn't collect revenue data (yet) so while they may know that a certain word is worth something and many others aren't... how could they affix a value to the converters?

Not sure use of this tool is naive... I certainly haven't seen any negative impact from it, only positives - as this tracking (despite it's negatives - mainly lack of aforementioned revenue data) is more accurate than other reporting tools that I have to pay for...

NoLimits

5:52 pm on Oct 17, 2005 (gmt 0)

10+ Year Member



Wouldn't "not including" the ROI calculating code make it look like you never convert?

This would in essence hurt every site you advertise on because smart pricing is a determining factor in the amount I make as a publisher.

I have seen this portion of smart pricing as a flaw for some time - but for different reasons.

Clark

7:02 pm on Oct 17, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Wouldn't "not including" the ROI calculating code make it look like you never convert?

That would be a faulty algo. You would assume Google understands that some people are using the ROI system and some aren't.

OTOH, your argument could be that since you convert, they should display your ad more often.

But then you could game the system, put conversion code on any old page.