2cent click, payout ratios changed?

Saw the lowest click ever.

[killroy]

I've just seen a 2cent click, mor accurately, clicks increased by 1, and earnings by $0.02. This could mean a lag in logging or even a rounding problem, but it could also mean a payout ratio change.

Until now the lowest I've ever seen was 3cents for a (presumably) 5cent click. This could mean a payout ration from 50% to 60% with rounding.

This 2cent click could Either mean a lower payout ratio, or a changed rounding system for low payouts (round down instead of up) or even higher accuracy in earnings counting, where 5cent clicks produce real 2.5cent payouts.

Let's watch out if we see more of this...

SN

[JasonHamilton]

Not meaning to flame, but isn't the lowest adwords cost per click 10 cents? I was under the impression that 10 cents was the lowest cost per click, making the 3 cent payout a 30% ratio.

[killroy]

nope, it's 5cents.

If you don't have an adwords account yet, I urge you to get one, even if it's jsut for keyword research! I found it absolutely invaluable to find high payout keywords to write apges about :)

SN

<side note>when making spelling mistakes don't switch the "c" and "o" in account or the word will get censored.</side note>

[Visi]

Not so sure it is the payouts changing, or just that adsense is out of ads, and we are seeing the bottom of the barrel.

Have been noticing a high number of PSA's for the last few days, and of course the related revenue decrease. Also pages that have always, since the beginning served 4 ads no problem, are now serving 1 or 2 ads. The past week has been a real difference to the past two months. (yes we anayse the results) Definitly something has happened, at least in the ad category we are seving. What concerns us is that the trend is now 5 days old, and is the middle of the month.

Have suggested in previous posts that need to see results over a period of time before commenting. Well we now have the basis of this analysis in place and something has changed this month, around the 8th to 10th. Impressions are up as we would expect in our category at this time of year, CTR is stable, (surprisingly) but PPC average has fallen.

Conclusion,lower end ads being served. This combined with before mentioned PSA ratio increasing suggests ad inventory has been reduced. We have seen indications of this in other posts recently, and have to wonder if the moving of types of ads to 4 out banner, and number of sites joining has resulted in the shortage.

This to me is not necessarily a negative to google. If the number of advertisers has dropped it certainly is, however they may just be using up the ads more quickly now. If this is the case, a balancing of the market between publishers and advertisers will take place. The latter means the program for google is a success and it will continue. The former means non acceptance and has negative impact on google. Only time will tell.

In the short term it is us the publishers that have decisions to make. If google allows in too many publishers and this results in reduction of ads served, and effective revenue then some will opt out. This is the balancing effect that I think we may be seeing happening this month.

[CPCretirement]

Did Google ever grandfather in low bids like Overture did?

[ap_Rhys]

Did Google ever grandfather in low bids like Overture did?

Can you elaborate on that in plain English?

[JasonHamilton]

ap_Rhys, that was in plain english :P

When overture implimented higher min bids, they let existing ads remain with the lower bid costs. Thus "grandfathering" them.

[ap_Rhys]

ap_Rhys, that was in plain english

Thanks for that - some people on this message board do not have English as their first language.

Personally, I'm just having my third book published (in plain English and by a major publisher) and the post I was referring to didn't mean much to me.

Maybe I'm just stupid?

[buckworks]

Google would have no reason to grandfather bids, as they've never raised their minimum bid from 5¢.

[Blue_Fin]

ap_Rhys, thanks for giving us English as a first language speaking members a wake up call. We all too often forget that what is standard English to us isn't for everyone. You had a very valid question.

The definition of grandfather clause at Merriam Webster's website is:

a clause creating an exemption based on circumstances previously existing

[loanuniverse]

If you indeed got a click worth only $0.02 then this is the first time I hear of it and does probably means a lower payout ratio as there are dozens of documented instances that indicate that $0.03 was the minimum paid per click.

I would be interested in getting reports of this happening to other people.

[John_Shaw]

While I see some very low value clicks, I also have seen some that are much higher. Since there is a delay in reporting, and I am not sure that each item (impressions, clicks, money) are reported at the same time, I put little value on hour to hour comparisions, just day to day.

In general, my PPC has been increasing over the last few weeks.

"Grandfather" on this usage is American English, AFAIK. It comes from the practice of writing laws. If a new law adds a restriction, such as increasing a minimum age, a clause is sometimes added so that those who are alreading the privilage can continue. Overture grandfathered keywords that were from 5 cents (old minimum) to 10 cents. You can't add a new keyword below 10 cents or reduce the bid on one to a value below 10 cents. I think someone else did the same thing earlier.