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Does "Smart Pricing" Apply to Site, Channel, or Publisher

         

signup1

3:06 am on Nov 2, 2004 (gmt 0)

10+ Year Member



After doing more research, I think may fall into the situaiton that Google used smart pricing to lower my earnings. I wonder if it applys to site, channel or publisher? If I changed the content to another domain, will it help?

Checking my past stats, I found google readjust smart pricing on the first of the month.

howiejs

7:15 am on Nov 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



GREAT question. I never see a good answer for this - and it comes up every month . . .

I think it is based of the "refer"

mahidhar

12:31 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



Can any one please explain me all about smart pricing?

luigi

1:00 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



Now you have X clicks, you have Y dollars.
If your clicks go up at 3X, you have 2.7Y dollars.
If your clicks go up at 5X, you have 4Y dollars.
If your clicks go up at 10X, you have 6Y dollars.
This only a fantasy example, but the principle of "smart pricing" is this: the more you have clicks, the less is the single click value. When you moltiply your clicks for 10, your earnings is moltiplied for a lower factor.

I noted that it is better to make an other site (domain) than add more pages (and make more impressions) on the same site (domanin).
If I do 10000 impressions and I can grow by 5000 with new pages, it is better to publish this pages and make this 5000 impressions on a new site (domain).

[edited by: luigi at 1:04 pm (utc) on Nov. 2, 2004]

Macro

1:00 pm on Nov 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



There is some speculation that smart pricing does not even exist. If it does exist it's based on conversions rather than traffic, impressions, or CTR.

luigi

1:15 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



"it's based on conversions rather than traffic"

Right, conversion and traffic is related.

The amount of high value ads is limited, and if they finished all successive clicks will be of a less value.
So, the first 500 clicks will have a high value, the second 500 a less value because high value ads are finished, and so on.
It is for this reason that is better to have 10 domains (with different keys) with a 5000 clicks each than only one domain with 50000 clicks.

alexandra

4:13 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



I guess adsense conversion should be the CTR, am I right?

If I have two sites, site A has a lower CTR, site B has a higher CTR than site A, how does smart pricing handle this case? will site A make any side effect on Site B`s earning?

Macro

4:43 pm on Nov 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I don't mean your conversion. :)

I mean conversion at the merchant's end.

It would make sense for them to reward you more based on the quality of the traffic you send the merchant (how many convert to sales) and not the percentage of people on your site who are clicking ads.

alexandra

5:21 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



Well, how does google know the conversion rate on merchant`s site?

signup1

5:33 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



Most people think they only use CTR or CPM to calculate it. I have confirmed it as well. But I think they use CTR and CPM per block, not per unit, which is very stupid.

alika

5:38 pm on Nov 2, 2004 (gmt 0)

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



I have confirmed it as well. But I think they use CTR and CPM per block, not per unit, which is very stupid.

I HIGHLY doubt that they are doing in on a per block basis. Afterall, one block may have 4 different advertisers -- and smart pricing is an incentive designed for EACH advertiser.

As G says in its Adwords FAQ, smart pricing automatically "adjusts the cost of a content click, which boosts advertiser ROI on content." They are talking of advertiser ROI -- why would Advertiser A care if the user clicks on the ad by Advertiser B by virtue on being on the same ad block? Doesn't make sense at all.

freeflight2

5:44 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



I wonder if it applys to site, channel or publisher?
publisher

signup1

5:56 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



freeflight2, thanks for you answer.

valeyard

6:07 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



The original email G sent about smart pricing stated that a number of factors affect click pricing. These include "the keywords or concepts that triggered the ad".

For that to be true, smart pricing has to be at least partially determined on a per page basis.

freeflight2

6:25 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



There is some speculation that smart pricing does not even exist
whatever it is, it does exist... my observations boil down to one thing so far: the more unique users you get, preferably directly from google search, the less 'SP' affects an account. G heavily discounts return visitors going directly to a site making many pageviews each (now even more than ever before).

Macro

6:31 pm on Nov 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>> G heavily discounts return visitors going directly to a site making many pageviews each

The amazingly high CTR I get for one of my channels can only be explained by people returning via the back button to try another ad. And the G gods pay me well for that channel.

signup1

10:57 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



freeflight2,

yuo are the man. found my way to beat Google SP.

Do you know if SP took place on first date, each month, or each week?

Just got the SP back to normal: Same Ad. PPC is back to normal. Google SP put a 70% discount on them. They are really evil.

annej

12:49 am on Nov 3, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>>G heavily discounts return visitors<<

That's what is hurting me then. I don't quite understand the logic though. I would think my return visitors would just be less likely to click on ads after they have seen the ones they are really intersted in. So per click wouuldn't the conversion be about the same?

Of course it's hard to tell. I'm not seeing quite the variety of advertisers either so they just may not be bidding very high.

All the more inspiration to work on my affiliate ads more.

darkmage

7:48 am on Nov 3, 2004 (gmt 0)

10+ Year Member



Wow there is a lot of fluff in this discusion.
1. There is no way to know if smart pricing starts on the first of the month and why would it? Besides, we don't know the value of a click, how much we get or how Google chooses ads. So how the hell can you know the impact of smart pricing?

2. Smart pricing occurs if your pages are less related to the targeted keyword/topic area than the ADVERTISER wants - the less relevant the less you get.

3. Adsense income varies, it goes up and down. It is a chaotic system. A lot of what gets discussed in these forums is based on one site's short term income.
It's a bit like saying its raining in New York this morning, so therefore it is raining everywhere in the world and will continue to do so.

Macro

12:55 pm on Nov 3, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>>Wow there is a lot of fluff in this discusion.

I agree.

If this Smart Pricing exists and there is a way to "beat it" that's very, er, interesting ;)

annej

3:48 pm on Nov 3, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>>Smart pricing occurs if your pages are less related to the targeted keyword/topic area than the ADVERTISER wants - the less relevant the less you get. <<

Then my problem isn't in the smart pricing as the ads are perfectly related to the topics on the pages. It must just be lower bidding on the topics.

At one time I got the idea content pages didn't rate as well as commercial pages as people don't go to content pages to buy something. But then maybe that is just getting really fluffy. ;)

Macro

4:08 pm on Nov 3, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It seems there are several theories about smart pricing:

1. It's controlled by the quality of your site
2. It's controlled by relevancy (!?)
3. It's controlled by whether it's on a search on content page
4. (My favourite) It's controlled by the conversion rate of your clickthroughs to actual sales

But till there is something authoratative -- like a comment from Google -- we must assume that all this is only speculation, and much of it is fluff.