how extreme can smart pricing go?

[hermes]

At its worst, how much can smart pricing scythe your earnings? Perhaps expressions as percentages would be most enlightening. At its very worst, can it completely decimate earnings, or is there a certain percentage that it can never get at - can never deplete?

I am doing some analysis. I have the bid price of the principal keyword of my site (it is a twitching site). I want to get some idea what percentage I will take off this bid price if, worst case scenario, smart pricing takes its full effect. I know that without smart pricing - publishers are rumoured to get around 30% (although no one knows for sure). But has anyone idea what the percentage is if smart pricing takes its full effect?

[GuruSense]

Don't know about you guys but I think it's working out for me, I'm gettin crazy 100 clicks for $70 easily at only 0.4% CTR

Estimated clicks i should hope to see today over 2000 = 100x$70 = $7000 ... but (BIG BUT) i realised somthing

As you get more clicks you also drive the adwords advertiser closer to their maximum bids, there ad eventualy disapears from your site and this replacing it with a cheaper ad ( as google have hinted the higher the bid the further up it will appear ), so effectively if i make 700$ im happy.

:) That's smart pricing son.. my beleif anyhow.!

[hermes]

I thought this would thread would take off more than it has. Are people not interested? Or feel that to discuss this would be too much of a breach of google TOS?

Gurusense - you seem to be doing very, very well. But do you have a wave of anguish every time you log in to adsense - smart pricing could pull those earnings down incredibly from what I have heard about it.

[hermes]

100/2000 = 5% CTR not 0.4% CTR.

You were prob in hurry. So, sorry to point this out.

[GuruSense]

I've realised that more clicks you get the value decreases but about 1am GMT 0 UK london time the clicks increase once again. but not as much... ( i believe all adwords accounts are native to their advertiser location, so you get reset advertisers every 24 hours but at different times )

I'm having a very good day :)

[GuruSense]

hermes both examples are seperate they were not meant to be as one. they don't link together your not on the adsense overview page ... sign -in :D

[europeforvisitors]

1) You've got the payout percentages reversed. Overall, Google pays about 70% of AdSense revenues to publishers, according to its quarterly earnings reports.

2) There's no way to know what effect smart pricing might have, because smart pricing is only one factor that determines what percentage of a given advertiser's nominal bid ends up in a given publisher's pocket.

[jchampliaud]

I thought this would thread would take off more than it has. Are people not interested?

You might have just posted on the wrong day. Where I'm at it's Saturday and the tends to be a slow day on the web.

[GuruSense]

Seriously guys i got around $200 for 300-400 clicks.. this is no joke.

:) I'm happy with it and my eCPM was off the scale a steady 5$ .

[jomaxx]

Hermes, it's impossible to know the actual bid price, or what advertisers will get matched to a given content page in order to bid against each other, or the proportion Google takes, or the maximum smart pricing effect. All you can do is place the ads and test them and see what happens.

That puts me in mind of a quote from my favorite movie, Joe vs. the Volcano. It occurs just as Tom Hanks and Meg Ryan are about to jump into a volcano (AdSense being the volcano in this analogy):

Nobody knows anything, Joe. We'll take this leap, and we'll see. We'll jump, and we'll see. That's life, right?

[dzcap]

How many impressions are you seeing per day? I estimate 150,000 - 250,000?

[hunderdown]

GuruSense, this is a bit offtopic, but what you describe--advertisers using up their budgets--is NOT what Google calls smart pricing. Smart pricing is a discount given an advertiser based on how well Google thinks a click on an ad is likely to actually be useful for the advertiser....

[moftary]

As far as I understand, smart pricing is based on conversion rates. The higher publishers referrals conversion rate, the more EPC they would have.

[europeforvisitors]

As far as I understand, smart pricing is based on conversion rates. The higher publishers referrals conversion rate, the more EPC they would have.

It isn't that simple, if we're to believe Google's actual statement on the matter:

[adwords.google.com...]

Google says that many factors are taken into account, such as the keywords or concepts that triggered the ad and the type of site on which the ad was served. (Note the example of clicks from a page of photography tips vs. clicks from a camera review.)

[GuruSense]

Smart pricing helps us. And I am in favour of smart pricing, thank you Google for a wonderful technology that other's do not have.

You all make mistakes by quickly pointing your finger at google's "SMART" pricing because your immiadtely think google doesnt want to make you rich, wrong they want your ads to pay out THE MOST possible... if you guys stopped to think what smart pricing is, you would find out that without it you would be making a hell of alot less.

:) I love smart pricing and i hope taht the smart pricing gets even better.