Forum Moderators: martinibuster
Not all traffic converts "right now", on the clickthrough. Some buying cycles take a bit longer so a click on your website might not result in a sale, but that doesn't mean the click doesn't have value. So long as your are delivering targeted or filtered traffic to the advertiser you are providing a service that has value and the bids will reflect that. An advertiser buying traffic in a market with a longer buying cycle may be looking at metrics other than making an immediate sale, such as the length of time the ad-visitor stays onsite, the number of pages viewed, the IP address of the visitor, whether the visitor signed up for further info, bookmarking activity (that can be tied to a visitor IP), etc.
Sites built around "get the click" versus "deliver targeted and primed traffic" should - eventually - drop from the system, either by virtue of smart pricing making the effort of getting the click fruitless, sites removed by site reviews, new publisher standards making it more difficult to get into the network or stay in the network or to add junk websites to an account, new "flavors" of Adsense (premium publisher, etc.), improved website selection tools made available to contextual network advertisers, etc.
Ya conversion should matter and since it doubtless does matter to advertisers one can envision that the quality of publisher clickthrough traffic will matter and increasingly so.
I'd rather get paid in dimes, quarters and dollars for leads that convert than pennies for delivering junk traffic. You?
Same for advertisers and their view on paying for traffic.
For most people it's not an issue. However you may be affected by low conversion if you (a) drive up your click rate to extremely high levels, (b) attract too much untargeted or off-targeted traffic, or (c) try to fiddle things so that you show "high value" ads on pages that are not really about that subject.
Example: If a user has an IP of a country who is not accepted by a certain payment method, and the only paiment method offered by advertiser is exactly that, isn't Google and advertiser job to make shore that the ad is not show to this user?
Due to the limitations of geotargeting, it might not always be possible to restrict ads to users capable of certain types of payments. (But if I were selling widgets in an effectively global marketplace, I'd provide payment methods that work around the globe.)
1) A "conversion" doesn't have to mean a transaction; depending on the advertiser, it may be defined as an inquiry, a registration, viewing a certain number of pages, etc.
2) Google isn't tracking conversion rates for every ad on every page of every site. Smart pricing (the main concern of those worried about conversion rates) is based on the likelihood of conversion according to Google's algorithms, which are based (at least in part) on the type of content but may also take other factors into account such as time on page after a click, whether the user backs up and clicks another ad after the click, etc.
The bottom line is that it's in the publisher's own interest to attract and refer quality traffic, partly to avoid excessive "smart pricing" discounts but also to avoid being added to advertisers' blocking filters.