Forum Moderators: martinibuster
One factor is the subject of your site. The ads are chosen based on the audience, as Google deduces it from the words on your page. If your site attracts ads for keywords where the advertisers compete heavily, your pay per click goes up.
Another factor is 'smart pricing' - look for a thread here that discusses that.
MAX = Advertisers Max Bid Amount
SP = Smart Pricing Discount
PS = Publisher Share
GS = Google Share
(MAX - SP) - GS = PS
Everyone agree?
The reason I don't have +/- SP is because it can't "raise" the Advertisers max bid. The most benefit a publisher can gain from Smart Pricing is the advertisers full bid amount.
But is anyone prepared to give me an idea of what they are getting per click? I would really like to populate this equation with some typical numbers.
(MAX - SP) - GS = PS
I appreciate - "typical" - is difficult. but anyone that could share their experience - that would be v.helpful.
I am particularly interested in GS and SP. What are the numerical ranges for these? If I know that I can look up the MAX for some keywords using the adwords tool - and then estimate (+/-) what PS would be for a site targetted to these keywords.
1) get an adwords account
2) go through first few steps to setup an adwords campaign as if you were trying to drive clicks to your site (keyword targetted campaign)
3) look and see how much people are paying for the keywords that drive traffic to your site
4) You will get about half that amount per click for the ads on your site, depending what keyword or phrase in your content triggered that ad being served.
For example if "antique widget restoration services" is one of the keywords people search for to find your site, make a campaign targeting keyword "antique widget restoration services".
If "antique widget restoration services" requires a minimum bid of .50 then chances are you will get .25 for clicks on ads that trigger because this phrase shows up on your site.
The Smart Pricing end of things is a little vague at this point.
What we do know for a FACT is:
Conversions play a role in how much of a deduction your clicks will suffer from Smart Pricing. While Google states that your CTR does not have an impact on it, indirectly it has to.
That is all I know to be factual, "from the horses mouth" in regards to Smart Pricing.
Some advertisers manage to get much lower rates due to having extremely high CTR for a prolonged period of time.
Chances are, if it's something you don't actively bid on - the minimum you see is much higher than the minimum of those who have been actively targeting the word/phrase with good results.