Will Smart Pricing be turned on?

[Jeremy_H]

I know that Smart Pricing is a theory, but does anybody have the theory worked out?

I started one website earlier this year and it was doing great, but then, starting this month, my earnings per click dropped by a little more than half. It was sad, but I chalked one up to Smart Pricing.

I just recently started another website about a different widget, and it’s doing pretty well. A lot higher earning per click then my other website. Can I assume that Smart Pricing has not yet been activated for this new website, but I shouldn’t be too surprised if my earnings drop way down then what I’m earning now when/if it is activated?

Thanks

[europeforvisitors]

I know that Smart Pricing is a theory, but does anybody have the theory worked out?

It isn't a theory. See Google's explanation of smart pricing at:

[adwords.google.com...]

[Visi]

Oh come on EFV...we all know its a theory:)

Have read that explanation a hundred times and still dont know how to sell digital cameras:) Smart pricing is like believing in a ghost.

Some manage to see it...others never do. It moves quietly behind the normal scenes....yanking on (your) chains....saying booo now and then.

Consider it to be like the old blue light specials at KMart for advertisers. Today if you allow us to put your ads on all these sites that we don't think convert well....you will get it cheap. Course you can get it even cheaper if you just bought CPM ads:)

[sailorjwd]

If they turn on smart pricing any more I'll be paying them to show ads on my site (instead of paying 1cent for showing ads on your site).

[Jon_King]

The pricing is way kooky to me. I watch several sites closely and monitor the ads displayed; and the payout variation is unpredictable to me.

It seems to hold overall by the end of the month but hour-to-hour and day-to-day the pattern seems gibberish.

For instance on a site yesterday with the same exact advertisers the clicks were paying .55 US, today they are paying .08. Man I don't get it, referrers, CTR and impressions are very similar. I just can't see a reasonable pattern.

I should say they will likely end up about .25 on average for this site as usual. I guess thats a pattern.

[whizkiddo]

I agree, just analysing things (for those who dont know me , that happens when revenus are on a downturn) and there are no changes in traffic / CTR. The EPC has just gone down by say 30% , which does hurt.

But I have just 1 high traffic site; have any of you noticed what happens across a variety of sites with completely different topics? Maybe its just the niche thats to blame? Also does having sites on different topics "insulate" you against these periodic upheavals? Waiting to hear back.

[david_uk]

I think that the technically accurate terms for the algorythm are Dumb Pricing (TM) and RandomPricing.

Smart it certainly isn't. Wonder if we could sue Google under the Trades Descriptions act?