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It is just I had a thought, does AdSense follow a method of ranking relevance similiar to AdWords,e.g.
price * clickthrough = position on AdWords
On Adsense, is it relevance * price = most likely ad?
Would seem to work as a general rule. After all, Google makes money for every click as well, so it is in their best interest to look for the most targetted, relevant ads. Knowing Google, they will have some algo designed to solve this, but what is it?
So if I target, say, the name of the site, e.g. ilikefishcakes, and I bid the minimum, would that be more relevant than someone bidding three times as much for the generic "fish cakes" (assumming the site name is used quite a bit on the page)?
Has anyone tried targetting sites (as an advertiser) that have had good ROI in the past, rather than just keywords?
Would be an interesting study.
I agree with you that there is some sort of algo behing it - there has to be with keyword(s) placement in competitive fields. They want to maximise their profit on ads, which they do by moving (high value) relevant ads in mazimum quantity
At the moment, your scope for improving your return on an individual site seems to be outside your hands. I.e. if CTR is important, its only with improved CTR that you get better targeted ads, which in turn improve your CTR.
At the moment I am unable to say if my improving CTR is due to algo, improved positioning, improved targeting, improved relevance...
...as you say, a bit like the Google algo (but probably simpler)