Forum Moderators: martinibuster

Message Too Old, No Replies

Smart Pricing + and - on Same Site?

         

turtle1776

8:19 pm on Nov 18, 2004 (gmt 0)

10+ Year Member



Is Adsense Smart Pricing smart enough to:

(1) know which pages on your site are performing well for Adwords advertisers, and boost them accordingly AND AT THE SAME TIME

(2) know which pages on your site are not performing well, and drop them accordingly.

My experience says it actually works this way, although my numbers jump around so much I am not sure. My best performing pages are up dramatically (+50% in one month) in both CTR and earnings per click, whereas poor performing pages on the same site seem to have dropped by 1/3 or 1/2.

If I thought Smart Pricing applied to the whole site, I would dump the low-performing pages because of the negative impact they were having on the rest of the site. But this doesn't seem to be happening. Instead, the high performing pages are rising in EPC while the lower-performing ones are dropping. My overall $ from Adsense are also up, despite the drop in certain channels.

Is this just a fluke? Has anyone else looked closely at their channel data and seen diverging trends (some strongly up, some strongly down) on the same site?

turtle1776

10:41 pm on Nov 18, 2004 (gmt 0)

10+ Year Member



Seems this has been asked before. After some searching, I found the text of the following email sent back in April, which clearly states that Smart-Pricing is based on the page, including keywords that triggered the ad (also page-based).

Some key quotes:

"Now, in addition to understanding the overall meaning of a page, our technology determines the relevance of concepts found on a page to pick better performing ads."

"A number of factors will be taken into account when calculating the expected value, including the keywords or concepts that triggered the ad."


Hello,

We're pleased to introduce two changes to our advertising services that will enhance the quality of the ads served on your site and help grow our base of advertisers.

Better and Better Ad Relevance

First, we're enhancing our targeting technology to deliver ads that are even more relevant to the content on your site. Over the past year we've been refining the technology we use to deliver ads to content pages by leveraging data from across the Google Network, monitoring results, and feeding this information back into the system - in other words, our technology is becoming smarter all the time. Now, in addition to understanding the overall meaning of a page, our technology determines the relevance of concepts found on a page to pick better performing ads. With this change we expect to deliver ads that better complement the content on your site and provide even more value for your users. The bottom line: increased relevance, and higher clickthrough rates.

Smarter and Smarter Pricing

Second, we're introducing enhancements to our pricing model for advertisers. Google's smart pricing has always provided better placement for better performing ads, and reduced the cost of a click to the least amount possible for an advertiser to stay above their competitor's ad. Now, with the new AdWords pricing model, we'll also automatically adjust the price of clicks across the Google Network based on their expected value to the advertiser. A number of factors will be taken into account when calculating the expected value, including the keywords or concepts that triggered the ad. 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.

For advertisers, each and every click will deliver the strong return on investment they have come to expect from Google AdWords - driving even higher advertiser participation on Google and across the Google Network.

What to Expect

While these changes will impact different publishers in different ways, we expect that the combination of these changes will result in most publishers seeing more relevant ads, and a slight increase in the number of clicks from ads on their site. A few publishers will see a decline in revenues. The amount of revenue that a publisher earns through Google AdSense depends on the content of each web page, the availability of AdWords ads, and now, the value of the leads provided to advertisers.

Enhancing our ad targeting and pricing models is an ongoing effort. With these changes we hope to drive more rapid growth in our advertiser base and deliver improved relevance - resulting in an increase in your long-term revenue, higher clickthrough rates,
and higher user satisfaction.

We look forward to providing you with the most effective advertising available.

We welcome your comments and questions about these improvements to Google AdWords and Google AdSense by email at adsense-support@google.com.

Sincerely,

The Google Team