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Smart Pricing

         

yosaid

7:13 am on Nov 12, 2005 (gmt 0)

10+ Year Member



The only people who are stuck with Adsense are the foriegners, the clueless, and the big dogs who profit from the unfair "smart-pricing" fraud. I am serious.

At this time Google needs publishers. Publishers don't need google. Thanks to YPN, Chitika and the new Adcenter from Microsoft.

Greedy Google is panicking. Check out their Referral program. looooooool.

Essex_boy

7:18 am on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



So your not a happy bunny then?

BeeDeeDubbleU

7:39 am on Nov 12, 2005 (gmt 0)

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Yosaid this is what yo said (excuse the pun) one week ago.

If the rumors are true that YPN earnings will go down drastically when YPN is released to other countries, then most of present beta testers would have no choice but to go back to Adsense where the real money is.

What happened in the last seven days to change your opinion?

kartiksh

7:50 am on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The smart price should have hit him/her in last one week to change his/her opinion. But over all i agree partially with his/her view. Google is a corporation so they aim to profit and its not their fault. This is the real world. Imagine you are earning top $$s and suddenly some body offered you alternative which will double or triple your top $$s. What you will do? Stay with Google? Please also assume the offer is from as reliable company as Google? Should Google complain you moved?

petra

8:12 am on Nov 12, 2005 (gmt 0)

10+ Year Member



Adsense is and will always remain the highest paying program on the net.

If your site does not convert to advertisers it will never convert unless you fix it so that it does, and any decent program will eventually find that out, and what's the deal with everyone mentioning chitika in almost every adsense post? The two programes are incomparable earnings wise.

thegreatpretender

8:22 am on Nov 12, 2005 (gmt 0)

10+ Year Member



I believe google has good reasons why they are implementing this feature (smart pricing). In the long run, this will be good for both publishers and advertisers, I think. If google continues to charge advertisers with high price and distribute them to publishers without getting good conversion in return, many adwords customers would opt out from adsense. If that happens, adsense program would die. I trust they are just balancing things. They started this, they are expert on this, so I trust them.

Many people here are praising chitika for giving higher epc over adsense, let's see if this holds after one year.

dzcap

10:00 am on Nov 12, 2005 (gmt 0)

10+ Year Member



Smart pricing = no good. I've already switched over 50% to YPN.

JuniorOptimizer

10:18 am on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



" Adsense is and will always remain the highest paying program on the net."

That statement is a bit much. YPN is already paying me much more on certain pages than Google ever did.

OptiRex

12:19 pm on Nov 12, 2005 (gmt 0)



The only people who are stuck with Adsense are the foriegners, the clueless,

That's me! Go on, jump ship...leave the advertisers for me, I'm not complaining...then again, since I'm clueless I wouldn't know what to complain about eh?

Thanks to YPN

Yep, definitely open to all us clueless foreigners...

david_uk

12:23 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Smart pricing *IS* fraud in that they claim it does something that it does not do. It's supposed to offer a discount to advertisers if the ads don't convert. However, most advertisers don't use conversion tracking, so any discount is based on guesswork.

As an advertiser I see no evidence of discounts. I pay as much for content clicks as I do search clicks.

As a publisher, the side of smartpricing I see is that it simply rakes off a larger share of profits, based on the success of my website.

Smart pricing is a tool to make Google shareholders richer by grabbing the biggest share of webmaster's income possible. They should drop all pretence that it's for the benefit of advertisers and be open and transparent about the true purpose of smart pricing, and be transparent in how it works.

My site has been promoted to number 1 in my niche by Google's Jagger update. Am I getting the same per click as I was before Jagger? Nope - I've been whacked by smart pricing for having more traffic and clicks. IE they are simply upping their profit.

petra

12:56 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



That statement is a bit much. YPN is already paying me much more on certain pages than Google ever did.

Appologies, have not tried yahoo as its not open to uk publishers yet. But from what I heard, their targetting sucks :o

europeforvisitors

3:05 pm on Nov 12, 2005 (gmt 0)



Smart pricing *IS* fraud in that they claim it does something that it does not do. It's supposed to offer a discount to advertisers if the ads don't convert. However, most advertisers don't use conversion tracking, so any discount is based on guesswork.

Nope. Smart pricing is based on Google's expectation of whether a click is likely to convert. See Google's official explanation at:

[adwords.google.com...]

Rolozo

5:39 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



Monopoly is going to die.

incrediBILL

5:53 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



YPN will have to do something like smart pricing to ultimately compete with Google on a level playing field and to think otherwise is just fantasy or plain naive.

Afvertisers can pick Yahoo and pay full price for everything or Google and pay smart pricing based on the site. Yahoo may get a lot of initial advertising just because merchants like to cover their bases. However, which ad network provides the bext ROI for the advertiser is where the most advertisers money will be, which IMO will be AdSense in the long run based on the current technologies in play.

Sweet Cognac

6:02 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



I removed adsense from my low performing pages yesterday. I'm now making more with CJ per day (as incredible as it may sound) than anything else. Just happened to find the right product. So I might as well advertise the product on all my pages right?

jomaxx

6:11 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Exactly. Do whatever works for your site (a certain affiliate program is my biggest paycheck as well).

I don't know why people get so emotionally caught up in believing that some particular program is either the bee's knees or the spawn of Satan. AdSense and YPN, even Chitika, are going to be wholly dependant upon the balance between supply and demand, in terms of both advertiser bids and also available pageviews supplied by publishers, so there's no reason in principle why any one company should be able to maintain a longterm advantage.

dzcap

6:21 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



if they didn't start smart pricing in the first place, we would all be happy

Sweet Cognac

6:23 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



If the advertiser on CJ had to pay a 1000 bucks just to become an advertiser, he's already made that 1000 back just from my site.

Adsense on the other hand, because of smartpricing was paying pennies. So why have a whole sidebar of low paying MFA ads, when you can have 1 ad that pays you well.

Now if I could find another product, that would be 2 Aces in the hole.

Can I change my handle from Sweet_Cognac to CommonSense? :)

david_uk

6:42 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Smart pricing is based on Google's expectation of whether a click is likely to convert. See Google's official explanation at:

[adwords.google.com...]

As has been said here many times, most advertisers don't use conversion tracking therefore Google do not, nor can not know if ads work. Therefore, any "expectation" is not based on any meaningful data.

Advertisers are not overly keen on smartpricing either. Like me, many advertisers don't see any appreciable discount, and many advertisers see it as a profit making mechanism for Google.

I can read what Google say about smart pricing, and I can also read their claim they make no money out of smart pricing from their blog / newsletter. Quite honestly, most people here don't seem to believe a word of it.

It's interesting to note that the fuss over smart pricing hasn't gone away like I thought it would. I did expect the posts recently to die a death and the issue become yesterday's news. However that hasn't really happened.

Smart pricing *may* have had an effect in getting advertisers to dabble in content - I sincerely hope so. But if their experience then turns out to be that the discount is minimal then how has it helped?

I think advertisers would rather see Google boot out the scammers than fiddling with an algorythm they don't trust any more than we do.

I've been reporting a site with back button disabled, adlinks box as menu, adsense box as content and another adsense box at the bottom just to make sure for a while now - it's still there. Advertisers want to see these sites gone as much as publishers do, yet it doesn't appear to be happening. Google should be concentrating on physically ejecting the sites reported to them out - smart pricing is not the answer.

dzcap

7:04 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



Smart pricing may just be a front for Google to pocket even more money! Advertiser bid $1, without smart pricing, publisher get 60 cents of it. With smart pricing, advertiser pay 95 cents, publisher get 5 cents. LOL! May very well be possible.

europeforvisitors

7:39 pm on Nov 12, 2005 (gmt 0)



if they didn't start smart pricing in the first place, we would all be happy.

No, because without smart pricing or something like it, most advertisers would avoid the content network.

As has been said here many times, most advertisers don't use conversion tracking therefore Google do not, nor can not know if ads work. Therefore, any "expectation" is not based on any meaningful data.

In your earlier post, you misquoted Google's claims about smart pricing and accused Google of fraud. Now you're just complaining that their expectations aren't based on meaningful data? Make up your mind. :-)

Seriously, you can argue about the merits of smart pricing all you want, but just because you don't like something doesn't make it fraudulent.

It's interesting to note that the fuss over smart pricing hasn't gone away like I thought it would. I did expect the posts recently to die a death and the issue become yesterday's news. However that hasn't really happened

Of course it hasn't gone away, because the publishers who have been hurt by smart pricing are still unhappy.

I think advertisers would rather see Google boot out the scammers than fiddling with an algorythm they don't trust any more than we do.

I think advertisers would like to see Google boot out the scammers and continue to match net pricing to actual, anticipated, or perceived click value.

Also (and I think this needs to be said):

Publishers whose EPCs have taken a hit may be too quick to blame smart pricing for their troubles. Remember, what a publisher earns from a click depends on the net cost to the advertiser (after a smart-pricing discount) and the share of the click revenue that Google gives to the publisher. For all we know, Google's compensation formula could take any number of factors into account, such as the ad-to-content ratio, the nature of the content, how long the site or page has been in the AdSense network, "TrustRank," etc. Google is under no obligation to disclose its compensation formula, so we don't know and likely will never know whether Google is using its payout formula to influence the future of the Web.

incrediBILL

8:31 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



No wonder I stopped participating in most of these threads as 75% of the posts are irrational paranoid ramblings about Google and people banging on smart pricing like the high anxiety monkeys beating the monolith with bones in '2001 A Space Odyssey' which gets real old, real fast.

EFV, save your breath, the same thread will pop up again this afternoon, tomorrow, the day after, next week, it's a waste of time.

A round of Xanax for everyone.

Check please!

dzcap

9:54 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



And just how exactly do you know that MOST advertisers will avoid the content network? Google have a virtual monopoly at the time they introduced smart pricing, even if they didn't introduce it, I doubt many would look elsewhere for contextual advertising. What happens when a certain auction site raise prices? People complain but still use it, same with adwords!

petra

10:15 pm on Nov 12, 2005 (gmt 0)

10+ Year Member



Its a fact that not all websites are created equal. Some are good sites... others, not so good. some sites are scrapers and others run by stupid little kids clicking on their own ads to make an extra buck. Without smart pricing the whole of the cpc network will colapse and if you think other programs like yahoo or msn wont have their own version you have another thing coming. Thank god for smart pricing even if its up to google to judge which sites convert and which ones don't.

ken_b

11:50 pm on Nov 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



It also needs to be said that you can have a perfectly good website, good design, good content, good traffic, and still not have it work very well for Adsense.

Put Adsense on a site like that and get ready to be disappointed if you are hoping for high value ads.

What you are likely to get is very general ads that are too broadly targeted to begin with, and then smart priced down to a few cents per click for the publisher.

Is that the fault of Smart Pricing? No, that's the way it should work if I understand it right.

If you've got a site like that you can still make decent money if you have enough traffic.

And you can't blame Smart Pricing for every drop in income simply because you don't know if the advertizers have lowered their bids.

europeforvisitors

12:07 am on Nov 13, 2005 (gmt 0)



And just how exactly do you know that MOST advertisers will avoid the content network? Google have a virtual monopoly at the time they introduced smart pricing, even if they didn't introduce it, I doubt many would look elsewhere for contextual advertising.

It isn't what "we know," it's what "Google believes." Google introduced smart pricing to make the content network more attractive by bringing click prices in line with actual or perceived value.

What's more, advertisers did (and still do) have an alternative to Google's contextual ad network: opting out of the content network and relying on AdWords.

aeiouy

12:32 am on Nov 13, 2005 (gmt 0)

10+ Year Member



I like smart-pricing myself. It makes smart-publishers smart-money.

Swebbie

12:41 am on Nov 13, 2005 (gmt 0)

10+ Year Member



Adsense is and will always remain the highest paying program on the net.

Nope, it isn't, at least not for everyone. At YPN, I earn about 7X per click what I do at Google. Now that their targeting is getting a lot better, CTR is approaching Google's, so you can imagine how much better I'm doing. I'll wager that in a year (maybe less), Google and Yahoo (and possibly throw in MS) will be in a serious and protracted war to win/keep the highest market share. Competition is good!

maxgoldie

1:18 am on Nov 13, 2005 (gmt 0)

10+ Year Member



Once again, I question your objectivity EFV, and here is why...

Once again, we have a thread where the OP questions the inherent flaws in the MEANS (in this case once again, the "Smart Pricing" algo) that Google uses to pursue its ENDS. Other posters then join in the debate, a debate again essentially about MEANS, and the unfairness and flaws in the MEANS.

Once again, you chime in again, predictably, with your ubiquitous Google-can-do-no-wrong assertions about the importance of the ENDS (the argument for the necessity of Smart Pricing from a business/economic-logical model), as if somehow the inherent flaws in the MEANS (again, the flaws in the Smart Pricing algorithm) were justified solely because of the importance of the ENDS in themselves.

So...what you successfully manage to do is to muddy the waters for us by confusing legitimate complaints in the flaws in the means to which Google pursues its goals, with the importance of the goals themselves...See the pathology?

Visi

1:48 am on Nov 13, 2005 (gmt 0)

10+ Year Member



So Max...lets have that discussion...the "means" discussion. Lets start with describing in definitive terms exactly what smart pricing is...how it is influencing your revenue...and please factual basis not opinions.

Please explain what other factors such as demographics of your visitors..the current pricing of the adwords you are showing and the relationship of un "smart priced" ads to your current situation.

Lets discuss the facts...

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