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Manipulation of Smart Pricing by even one Advertiser

Suggestion of serious flaw with smart pricing

         

vincevincevince

3:32 pm on Nov 14, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Smart pricing is based upon conversions from a given advertiser, which we should presume includes site-targetted adverts.

If the advertiser targets your site for adwords, and then puts the conversion tracking code onto a page they never show users (or don't put it at all) then your site will have awful conversions. They can then show their ad to another site but put the conversion tracking on the landing page, giving the other site monster conversions (remember the advertiser doesn't pay Google per conversion so it won't add a cent to their bill to do this).

What's happened now? Your site has been marked at really badly converting. The CPC plummets and your advertiser can get his clicks for peanuts. Most of your other advertisers, if not all of them, probably don't have conversion tracking set up.

This seems, now I think of it, a very obvious and simple abuse of the system and unless AWA can give some explaination why it can't happen, should probably be assumed to be happening now.

So, if your CPC suddenly drops without explaination, perhaps you should be looking to manipulation by your advertisers. How you'd ever detect such a scam is impossible to judge.

dzcap

3:36 pm on Nov 14, 2005 (gmt 0)

10+ Year Member



Yep, add this to the long list of flaws with smart pricing.

ownerrim

4:23 am on Nov 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I've been site targetted several times and each time I found the results cruddy enough that I chose to block the advertiser. Now, I block any advertiser who sets up a site-targeted campaign.

EarleyGirl

4:34 am on Nov 15, 2005 (gmt 0)

10+ Year Member



I've been site targetted several times and each time I found the results cruddy enough that I chose to block the advertiser. Now, I block any advertiser who sets up a site-targeted campaign.

Forgive the newbie question but how can one tell if their site has been targeted?

Hope

europeforvisitors

4:55 am on Nov 15, 2005 (gmt 0)



Smart pricing is based upon conversions from a given advertiser...

Just out of curiosity, where did you hear that?

jomaxx

5:12 am on Nov 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I don't see any point in an advertiser doing this. If they made one site appear to convert less than average, then by definition they'd have to make other sites appear to convert MORE than average, and they'd end up paying proportionally more for that traffic.

The only way I can see this working as a conspiracy theory is if you break up badly with your girlfriend, who happens to be an AdWords advertiser.

Aircut

5:17 am on Nov 15, 2005 (gmt 0)

10+ Year Member



Now, I block any advertiser who sets up a site-targeted campaign.

and may i ask how you do that?

DavidDeprice

6:52 am on Nov 15, 2005 (gmt 0)

10+ Year Member



This does not correspond to Jenstar posts on smart pricing. I've read her post and this is what I made of it (my interpretation).
Google tracks conversion rates for ads of advertisers that use conversion tracking tools (google uses a 30 day cookie for that).
The conversion rate for ad 1 for your site is X
The conversion rate for ad 2 for your site is Y
The conversion rate for ad 3 for your site is Z
Since some of us see several hundred to several thousad advertisers and it's not unreasonable to believe that at least 2% use conversion rating, you get the idea.
If ad 1 converts poorly not only for your site but also for all other sites, then you won't get punished for it.
You see, "lower conversion" is not an absolute figure. Lower mean below the average. So your example makes no sense. If, somehow, the advertiser has high conversion from other publishers AND somehow manages to manipulate low CR from your site, then it would at least theoretically be possible? But how? You'd have to use the same ad for all advertisers. They aren't going to compare conversion rate for ad 1 with conversin rate with ad 2.

jetteroheller

7:01 am on Nov 15, 2005 (gmt 0)

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



I think Smart Pricing is calculated by conversion from ads on Googles search pages against conversion on content pages.

So with this trick, the advertisier would also have a strange conversion at Goolge's search pages.

When my theory is right, it should also happen, that ad prices on some content pages are higher than on Google's search pages if the conversion is better.

vincevincevince

11:43 am on Nov 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If they made one site appear to convert less than average, then by definition they'd have to make other sites appear to convert MORE than average, and they'd end up paying proportionally more for that traffic.

If I show ads only intermittantly, or with a low budget / cpc on other sites, it costs me very little. I can then run full budget on your site getting clicks for peanuts.

DavidDeprice

11:50 am on Nov 15, 2005 (gmt 0)

10+ Year Member



Listen folks, smart pricing does not work by comparing by how well the contextual ads fares compated to search ads - that's nonsense, no one ever found any evidence of that. Read carefully what Jenstar wrote - that's as much accurate information on smartpricing as we know right now.
Second, it is technically possible to create an ad that will have very low conversion rate. But you'd have to manipulate that this particular ad converts very poorly at one site (the one being set up), while it converts much better at others. How are you going to do that for that very same ad? Even if you somehow manage to do that, what about all other ads that are being tracked? If their conversion is good, that one ad will make no difference.

Maxima

1:52 pm on Nov 15, 2005 (gmt 0)

10+ Year Member



I was wondering about this too. It can work both ways.

For eg. if you have a dynamic script so that for leads from one site, the conversion tracking code (showing a successful conversion) is put rarely and always put for other sites leads (maybe right on the landing page to show very high conversions), then automatically the first site gets a low conversion score and the clicks get cheaper due to 'smart pricing'. It should be pretty trivial to implement such code by checking the referrer tag.

Of course it could then work the other way wherein a publisher could theorotically get a better 'smart pricing' score for his website by advertizing on his own site and showing high conversions compared to other sites on the content network with the method above.

Oh and about jenstar's blog, the info she put on her blog about smartpricing was got from a post by one the members on this forum, whether it is true or not is not verified.

vincevincevince

2:10 pm on Nov 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Of course it could then work the other way wherein a publisher could theorotically get a better 'smart pricing' score for his website by advertizing on his own site and showing high conversions compared to other sites on the content network with the method above.

That is a good point. However, do you think that it needs to run on the 'high converting' website all the time? Or will a few days run be enough to establish the 'par conversion' for the ad, and then enable the advertiser to get cheap clicks in the targetted 'low converting' site. You can certainly change your CPC per site to ensure that you are very rarely shown on the 'high converting sites' - in fact, as the sites start converting well - won't the minimum to get shown go up and potentially do this automatically?

Leosghost

2:46 pm on Nov 15, 2005 (gmt 0)

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The only way I can see this working as a conspiracy theory is if you break up badly with your girlfriend, who happens to be an AdWords advertiser.

;))

Erku

4:15 pm on Nov 15, 2005 (gmt 0)

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



I sent a feedback about Smart Pricing flaws to Adsense and they said that they are working to enhance the program.

The bottom line is that advertisers should be equally responsible for conversion. Not solely the publishers.

Please send your feedbacks to Adsense, they are very good and they consider the matter well.

Thank you.

dzcap

4:33 pm on Nov 15, 2005 (gmt 0)

10+ Year Member



Good idea, I've sent my suggestions in.

DavidDeprice

4:35 pm on Nov 15, 2005 (gmt 0)

10+ Year Member



Now, that's silly. Do you seriously think that advertisers who pay their own money for displaying their ads through AdSense network AREN'T interestend in sales?

vincevincevince

4:49 pm on Nov 15, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Do you seriously think that advertisers who pay their own money for displaying their ads through AdSense network AREN'T interestend in sales?

They certainly are interested in sales. Unfortunately, their sale conversions actually change the price they pay on a site. They pay less per click on places that don't convert well. It seems so simple to just hide the conversion code for a given site to drastically reduce the cost per click (and the income of the adsense user!).

DavidDeprice

4:59 pm on Nov 15, 2005 (gmt 0)

10+ Year Member



Vince - there is absolutely no evidence that what you say has any relation to reality? What if some people "hack" into Google mainframe and "set" their own low prices?

Now about "advertisers being responsible for conversion".
I've been an AdWords advertisers for two years before I started AdSense (and still am). As an advertisers I want to make more money than I spend.
Now, let us say you got smartpriced. We'll make it very simple. You got smartpriced because my ad on your site has a 2% conversion rate and my ad on another site has a 5% rate. Some suggest that it's my responsibility, as an advertiser to increase conversion rate. Allright, let's say I worked hard and doublded it. Now CR for my ad on your site is 4% and on another site 10% and you are still being smartpriced. You see, smart pricing coefficient just shows how likely your audience is likely to buy. If you get people who want to buy stuff, you should not have problems with smartpricing.
You see, no one has been able to show that one advertiser can drive a site into being smart priced. Let's just entertain the possibility that the premise of this very post may in fact be true. Then why not simple test the idea and find out if it's true or not?
Why blame google that "even one avdertiser can manipulate Smart Pricing", when there is no evidence whatsoever that this is possible in any way, except for in someone's head?

DavidDeprice

5:03 pm on Nov 15, 2005 (gmt 0)

10+ Year Member



It seems so simple to just hide the conversion code for a given site to drastically reduce the cost per click (and the income of the adsense user!).

That part I don't get. If you hide conversion code than it won't work, right? So there will be no conversion data. No data, no impact.
Second, why hide conversion code? You don't have to implement it at all. Most advertisers probably don't track conversion. They don't hide any code.
You see, either the code is there and it's working or it's not there and not working (if it's there but not working, it's the same as "not there").

Maxima

3:15 am on Nov 16, 2005 (gmt 0)

10+ Year Member



David, 'hiding conversion code from a particular site' means just that!

The conversion code isnt shown to visitors coming from one site whereas it IS shown for visitors from other sites. (A little script which checks the referrers would do the trick) So automatically visitors from the first site even if they convert show 0 conversions and clicks become cheaper because of smart pricing. (because other sites show conversions)

Although I wonder about the effectiveness of this considering many advertizers but it seems plausible.

Aircut

5:02 am on Nov 16, 2005 (gmt 0)

10+ Year Member



Now, I block any advertiser who sets up a site-targeted campaign.

and may i ask how you do that?

EarleyGirl

6:08 am on Nov 16, 2005 (gmt 0)

10+ Year Member



Now, I block any advertiser who sets up a site-targeted campaign.

and may i ask how you do that?

I asked something similar when this thread first started. Is there really a sure way to tell if your site has been targeted or not? Is it a big secret or am I supposed to read between the posts somehow and guess at the answer?

Let's see... I'll guess NO.

Hope

jomaxx

6:13 am on Nov 16, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Any advertiser you see appearing quite a lot on your site, I suggest you ban them just to be extra safe. That should improve your earnings in the long run.

dzcap

7:05 am on Nov 16, 2005 (gmt 0)

10+ Year Member



Do you filter them even if they're real companies?

vincevincevince

2:29 pm on Nov 16, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Now, I block any advertiser who sets up a site-targeted campaign.

Unfortunately there is no sure way to know which advertisers that may be. Google doesn't allow us to opt out of site targetting, or smart pricing.