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Why does EPC drop throughout the day?

high in the morning, but avg at night is much lower

         

uhwebs

2:48 am on Jan 18, 2006 (gmt 0)

10+ Year Member




Ok, I've noticed something in my account; in the mornings, my EPC is much higher than throughout the middle of the day or at night. It's almost like the more clicks I get, the less per click I'm paid.

Anyone else notice this? Why is it?

Nick Jachelson

3:17 am on Jan 18, 2006 (gmt 0)

10+ Year Member



I noticed that too. I think it's just because it shows higher-paying ads first. For instance, I use AdWords, and it only shows my ads in the morning.

ArtistMike

3:35 am on Jan 18, 2006 (gmt 0)



Advertisers turn off their ads in the afternoon or at night.

uhwebs

3:58 am on Jan 18, 2006 (gmt 0)

10+ Year Member




It seems like I get more clicks in the afternoon/night than in the morning.

Why do advertisors turn off ads later in the day?

Nick Jachelson

4:20 am on Jan 18, 2006 (gmt 0)

10+ Year Member



I don't turn them off .. it just exceeds my daily limit by that time.

OptiRex

4:52 am on Jan 18, 2006 (gmt 0)



Advertisers turn off their ads in the afternoon or at night.

Search the WebmasterWorld archives and you will find this has been a discussion point for a long time.

This is a generally accepted US concept by specific companies...i.e. the rest of the world does not exist and we do not care about it!

I am NOT being anti-US stating this, it is a fact that many US companies do not want to do business outside of their stated hours. They are simply not interested in doing business with anyone else other than the US or Canada.

That is their perogative, if they can survive on it, fine. I also take a similar attitude to enquires from countries which, no matter what I do, I shall never be able to supply because "something" is always not quite right.

At times in business it is better to admit not being able to understand and admit to being incapable of supplying the consumer's requirements rather than trying to be the one who had no concept of the demand to begin with.

Believe it or not, and I never ever envisaged such a day would happen, I reject more potential business orders than I accept simply because they would be too much hassle.

And what has anybody learnt through what I have just written?

That the vast majority of business is still being conducted by people with knowledge and experience and not by the lowest price!

The Net's been a wondeful tool for trades worldwide to prove their intrinsic values and just how much the Net cannot yet provide an emergency-on-demand-service-of-any-type.

Oooooooops...went off-thread there a bit!

hunderdown

5:44 am on Jan 18, 2006 (gmt 0)



I attribute part of it to the flip side of Optirex's comment. I am in the US but get a reasonable number of UK visitors, who visit early in the US day. I figure that UK advertisers are bidding higher than US advertisers, for whatever reason...

europeforvisitors

6:02 am on Jan 18, 2006 (gmt 0)



I get a lot of traffic from Europe and points east, but I haven't given any thought to whether EPC declines during the day on my site. If it does, it isn't obvious. (I'm not obsessive enough to track EPC from hour to hour or from morning until afternoon!)

Hobbs

6:12 am on Jan 18, 2006 (gmt 0)

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



I observe higher EPC starting 12:01 am Google Mean Time (GoogMT)

darkmage

8:14 am on Jan 18, 2006 (gmt 0)

10+ Year Member



It is relatively straight forward. Advertisers can set a per day budget. Google loads ads until the budget is exhausted. More bidders generally mean higher CPC.

As higher bidders start to drop out due to budget being met, so the amount paid for ads still displaying ALSO drops.

I don't look at CPC, I look at eCPM, which follows the same trend (this may not be the case on low traffic sites).

jomaxx

8:58 am on Jan 18, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My best guess is that it's an artifact of the way that Google (a) calculates how much a click is worth, or (b) reports how much you earned. In other words it's not your site performance that is changing, it's simply the way Google's algorithms work.

I see this every single day. For example, it's now a few bucks into the new day (January 18). Obviously the numbers are low, but in usual fashion my CTR is half again as high as yesterday and my EPC is almost TRIPLE what it was yesterday. It'll all be back pretty close to the mean by the closing of the day.

This is neither good nor bad; it's just the way things are. Intraday results shouldn't be relied upon too heavily.

elsewhen

9:09 am on Jan 18, 2006 (gmt 0)

10+ Year Member



i think the real answer hasn't been mentioned yet. my site gets the majority of its visitors from the u.s. and the peak traffic time is during the u.s. business day.

in the evening, a higher percentage of my visitors are from the east (china, india) and is suspect that the clicks are worth less from there. i suppose that a click in china is smartpriced to a lower amount than a click in the u.s. simply because the conversion rates are lower.

so, as internet traffic moves from the west to the east during the day, click values decline. the reverse might be true, if you have a site that caters to different countries. for example, a site that targets thailand, probably gets better CPM at night, google time.

about budgets... adwords budgets are set for monthly periods, but not daily ones. i dont think that google shows ads starting at midnight and continues to display them until the quota runs dry. i would hope that most advertisers have positive ROI and have set their budgets well above the predicted amount.

elfred

9:12 am on Jan 18, 2006 (gmt 0)

10+ Year Member



Highest EPC is, for me, starting around 01:00 AM GoogleMT. The lowest starts around 06:00 PM GoogleMT. Unless US advertisers do not want to advertise late in the US evening, but want to advertise very early in US morning (or very very late in US night :-)), this seems, to me, because of exhausted daily budgets.

Hobbs

9:26 am on Jan 18, 2006 (gmt 0)

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



many US companies do not want to do business outside of their stated hours

Isn't that easier by geo targeting not time? (Excuding business only niche). Does anyone know which is more popular (time or geograpgical) targeting?

Scruffy

10:13 am on Jan 18, 2006 (gmt 0)

10+ Year Member



I am constantly amazed by the reluctance of US companies to deal outside the USA. The European market is bigger than the USA, about 750 million as opposed to the USA 300 million.
The UK alone has 60 million. Most of whom speak English well enough to do a business deal. ;-)
'Outside business hours' means nothing to the internet.
OK you have to understand about taxation, but that is just book smarts.
I deal with companies world-wide all the time. It's easy.

21_blue

10:53 am on Jan 18, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I think it is a complex combination of factors.

In theory, Google spreads the budget throughout the day so 'running out of budget' shouldn't happen. From our experience with Adwords, however, it does.

Our site has different topics that are of business or personal interest. The former attract higher rates and tend to feature more during business hours; the latter have lower rates and feature more in the evening.

On top of that one needs to overlay the different business/evening timezones and the different geographical zones. 'Late in the day' Google time is the Californian evening, high volume and low rates, and Australian business time zones, where volume is low even if rates might be higher because its business. Hence a low average. 'Early in the day' Google time is UK business, and as Australian evening traffic drops out, eastern US/Canada business starts to kick in. Hence by the time Google are having their breakfast EPC is reaching a peak.

Other countries are in the equation, but the volumes are much smaller. It is primarily the UK/US business patterns that affect our rates, such that the EPC in the first 8 hours of the Google day is 3 or 4 times the last 8 hours.

europeforvisitors

3:30 pm on Jan 18, 2006 (gmt 0)



The European market is bigger than the USA, about 750 million as opposed to the USA 300 million.

Google doesn't give a breakdown of where AdSense clicks are coming from, but I can vouch for the importance of Europe (and other regions) as markets for U.S.-based Web sites. Of the revenues that we receive from our largest hotel affiliate partner, anywhere from 50-65% come from outside the U.S. and Canada, depending on the time of year.