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Major changes to AdSense

Pricing structure and ad relevance

         

markus007

8:04 pm on Apr 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Unless adsense is sending out a april fools joke, what do people think of the changes? Every site has a unique pricing model?

For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.

[edited by: markus007 at 8:08 pm (utc) on April 1, 2004]

jaxomlotus

8:48 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



that's not a bad idea, but how - and why should google listen? We're sending "bad" leads after all.

valley

8:50 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



'bad leads'? They were good leads only few days ago

tombola

8:52 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



that's not a bad idea, but how - and why should google listen?

Remember the "related search" thread in August last year?...
[webmasterworld.com...]
Google dropped that "feature" after numerous complaints on this forum.

EasyMoney

8:58 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



I have replied to the email Google sent outlining the changes to adsense. I explained what type of results I was seeing on my site. I hope it makes a difference.

Perhaps the best way to "cry out" will be the changes that we publishers make to our sites as a result of the new adsense.

Also, I do not believe that the adword advertisers are seeing more "targeted" or "quality" results as the changes. This will help as well.

Personally, I understand what Google is trying to do, and it makes sense. The problem is, they missed the mark big time. I could be wrong, and perhaps the changes were meant specifially to line their pockets, in which case I believe they have been very successful... for the short term.

Even if the problems we are experiencing are fixed, I believe Microsoft solution will get a much warmer reception from publishers who have been burnt by this experience than they would have previously.

europeforvisitors

9:04 pm on Apr 4, 2004 (gmt 0)



Looking across the board mostly we all lose big time, which brings something to mind:
Was the new targeting technology exercise just an excuse to smooth out the real cut in publishers revenues?

No, because lower click prices for advertisers mean lower revenues for publishers and for Google.

Just as Google's search algorithm changes over time, the Google "content ad" algorithm will continue to evolve and--with luck--improve. Better targeting, higher conversion rates, and improved value for advertisers should translate into more advertisers buying more ads in more niches as time goes by.

For publishers, things to hope for include:

1) Upward pressure on bids as more advertisers get comfortable with the idea of "content ads."

2) More targeted ads on keywords or keyphrases that aren't yet attracting advertisers. More ads on more keywords/keyphrases = more opportunities for revenues on editorially diverse sites.

3) A better match between click price and actual value as Google refines what may now be a rather primitive discounting formula.

In looking at my own site, I can see many pages where improved targeting and--just as important--more advertisers would result in higher revenues for me and for Google. I think Google wants to fill those revenue gaps just as much as I do. And as much as I dislike seeing my EPC and revenues take a hit in the short term, I'm willing to concede that changes were necessary to make content ads more attractive to advertisers--especially with an increased pool of clicks from gmail, DomainPark, high-traffic/non-niche premium sites, etc. watering down conversion rates and ROI.

What I'd really like to see is a way for advertisers to opt in or out of specific sites. The variable-pricing scheme may be a step in the right direction, but some advertisers will inevitably feel that non-converting traffic is as worthless at two, three, or four cents a click as it is at five cents a click.

onlineshrine

9:35 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



[search.yahoo.com...]

Hopefully Google will respond to publisher concerns with some kind of corrective action. Or are they trying to make the above Yahoo bombing seem true?

Actually, it's number two on Google now too:

[google.com...]

Sunflux

9:35 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



3.5 days of reporting:

CTR: down 19%
EPC: down 24%
CPM: down 39%

I am an extremely niche site - the only sizable one in this field - and Google was doing quite fine with finding paying advertisers up until the end of March.

forcesofnature

9:36 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



They are tracking conversions and adjusting the Adsense click prices accordingly. Confirmed:

Google, Web search's top dog, is changing its ad service to offer discounts to some shortchanged advertisers while goosing relevancy for publishing partners. It said Thursday that it now monitors ad performance on its publishing partners' Web sites, which display Google's text-based ads amid their own content. Google can track how many sales, or "conversions," result from the ads. If they're not up to snuff, it plans to reduce the per-click fees it charges those marketers.

"Our technology looks at signals to determine which pages convert more than others," said Salar Kamangar, Google's director of product management. "We'll charge people less when they convert less well." An e-mail Google sent Thursday warned its partners that ad revenues could drop or rise, depending on convergence rates. It said the changes should also make ads more relevant.

[news.com.com...]

freeflight2

9:47 pm on Apr 4, 2004 (gmt 0)

10+ Year Member



especially with an increased pool of clicks from gmail, DomainPark, ...

I'd put these kind of sites into the category junk traffic - I am sure most adsense sites produce far better conversion than domain park sites and I guess gmail will be by far the worst: "OK, I am done reading email... I am bored... where can I click on now...?".
We just switched back to our old findwhat distribution deal which delivers a higher CPM than adsense right now.

ownerrim

9:50 pm on Apr 4, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Here's the rub to that story though. If they keep serving irrelevant, or "less relevant" ads on publisher sites...the payout will be abysmal. Almost makes you wonder if there is a strategy here to save Google on costs, while hiding behind the excuse that advertisers need a break.
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