Forum Moderators: martinibuster
The other reason is to insure the ad that's click on the most is also the first one to show up in your page code. Let's say that the best performing ad for you is at the very top of your page. However, due to tables, the code for the ad on the left side of the page comes first, followed by the ad for the top of the page. Google will put the highest paying ads in the first block on your page's code, which is actually on the left (perhaps buried under a menu) instead of the second block of code, which is actually shown at the top of the page. So, get rid of the ad on the left, the first one shown now is the one at the top of the page (which is the one that gets the most clicks), and see your earnings skyrocket!
Now, if all of your ads are performing roughly the same, then I wouldn't worry about it. In my case, I was making $60-$70 (or more) on my site via two channels, the top ads and the ads I show on the forum (inline with posts). The side and bottom ads were making maybe $0.16-$0.20 daily. Don't think they ever got above $1. So I took them off, and am waiting for Smart Pricing to kick in again and give me more money!
- if you kick out low performing ad blocks, the number of clicks is only reduced in a small amount and the remaining clicks have a higher average epc.
- reducing ad blocks means reducing ad blindness and focusing the visitor on the ads which perform and pay well. you direct your visitors to the hot spots where the money's at. not to the cheap filler ads
- few ad blocks result in a better look and feel for your website. the audience will thank you for not being annoyed with a bunch of needless advertising messages and will gladly come back to your site
- showing ads that nobody clicks on is worthless. show only ads that perform and earn you money, keep it professional
- get unsmartpriced with this strategy by only delivering high quality clicks for the advertiser. you don't want no low-awareness clicks out of embarrassment because visitors can't help clicking in front of a wall of ads
- don't take your crappy competitors who do the opposite as an example. go your own way, be unique
So why does CTR affect the Smart Pricing factor of a site?
this has been discussed many many times in this forum. so please have a look at it.
ctr has probably no influence on smart pricing. maybe on very low performing pages, that is low ctr and low epc.
[edited by: moTi at 5:18 pm (utc) on May 24, 2006]
I thought Smart Pricing was determined by the percentage of ad-clicks that convert to sales or registration on the advertiser's site
That is one element of the smartprice calcuation, but there are probably other factors as well, eg: some algo-analysis of the page content to assess how relevant it is to the ads being served.