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Smart Pricing

         

yosaid

7:13 am on Nov 12, 2005 (gmt 0)

10+ Year Member



The only people who are stuck with Adsense are the foriegners, the clueless, and the big dogs who profit from the unfair "smart-pricing" fraud. I am serious.

At this time Google needs publishers. Publishers don't need google. Thanks to YPN, Chitika and the new Adcenter from Microsoft.

Greedy Google is panicking. Check out their Referral program. looooooool.

europeforvisitors

1:51 am on Nov 13, 2005 (gmt 0)



Once again, we have a thread where the OP questions the inherent flaws in the MEANS (in this case once again, the "Smart Pricing" algo) that Google uses to pursue its ENDS.

Did you even read the original post in this thread? The one that began, "The only people who are stuck with Adsense are the foriegners, the clueless, and the big dogs who profit from the unfair 'smart-pricing' fraud"? Apparently not.

Other posters then join in the debate, a debate again essentially about MEANS, and the unfairness and flaws in the MEANS.

But the other posters don't know the "means." Google's smart-pricing alogrithm is secret. So complaints about "unfairness" and "flaws" are inherently subjective (and usually self-centered). They come down to "I'm not making enough money" or "Google must be cheating because my EPC dropped."

Once again, you chime in again, predictably, with your ubiquitous Google-can-do-no-wrong assertions...

That's right--when you can't refute the message, attack the messenger. Still, this thread isn't about me or you; it's about whether smart pricing is a "fraud," whether it's "unfair," and whether Google is "panicking" because only "foriegners (sic), the clueless, and the big dogs" are profiting from it. And by the way, I'd love for someone to explain why "foriegners" and "the clueless" are able to profit from smart pricing while those who aren't foreign or clueless suffer. What do those "foriegners" and "clueless" publishers know that clued-in U.S. publishers don't?

david_uk

8:00 am on Nov 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



But the other posters don't know the "means." Google's smart-pricing alogrithm is secret. So complaints about "unfairness" and "flaws" are inherently subjective (and usually self-centered). They come down to "I'm not making enough money" or "Google must be cheating because my EPC dropped."

There simply isn't a problem with this - I don't see why you think there is. Posters are being honest, and IMHO that's a good thing. Far better than saying how wonderful Google is, and that they can't do any wrong. Google reads this forum, and hopefully uses comments here (good and bad) to see what the general views are and hopefully make improvements to adsense. Therefore negative feedback is a good thing that may bring about some positives some way down the track.

You are forgetting that as Google just don't answer emails, and when they do they don't understand the question and give irrelevant boiler-plate replies. Therefore this forum is the only way we have of letting Google know of our concerns. People *will* use the forum to that end.

In my case, I personally think smart pricing is unfair in that it's simply slashed the EPC I've had over the last couple of months because I've got a better position thanks to Jagger. It's happened to me, therefore it's happening to a lot of others. I don't post to complain about what I'm not earning thanks to the awful algo, but to share with others what is happening and why I *think* it's happening. It helps someone, somewhere. I appreciate other's sharing good and bad experiences, therefore I do the same.

Being #1 on the keywords for my niche makes my site prime real estate for ads. I'm not suggesting that smart pricing should increase my EPC because of this, but I am saying that cutting my EPC by 28% as a pure profit rake off for them is a tad obvious. We all expect fluctuations (sometimes big ones) - that's adsense life, but their profiteering is blatant. Coupled with my experience as an a advertiser, is shows that smart pricing is all about maximising google's profit, and has sod all to do with giving advertisers a discount.

You are right, we will never know the truth, but sometimes patterns are so clear there really is little doubt.

petra

2:18 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



I hear what you're saying David UK but the at the end of the day we all entered into this program knowing full well that Google and Google alone decides how much cut to give you and at the end of the day that is the bottom line. For publishers who don't like Google's "unfair" policy... the door is wide open ;).

Max_M

2:48 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



But the other posters don't know the "means." Google's smart-pricing alogrithm is secret. So complaints about "unfairness" and "flaws" are inherently subjective (and usually self-centered). They come down to "I'm not making enough money" or "Google must be cheating because my EPC dropped."

Just had a look at my states again. Them $3-$5 per/c pages suddenly making only $0.01-$0.04 for three days strait with the same ads on, same traffic and same sources of traffic.....you must be kidding EFV.....smart pricing is nothing but a not too smart webmaster shafting tool, IMO.

I hear what you're saying David UK but the at the end of the day we all entered into this program knowing full well that Google and Google alone decides how much cut to give you and at the end of the day that is the bottom line. For publishers who don't like Google's "unfair" policy... the door is wide open ;).

There are so many better paying alternatives out there...you bet it is. I have no doubt G are already seeing a steady drift in the number of daily impressions network wide. How do i know?....their new affiliate program speaks a thousand words.

Shame really.....adsense used to be an excellent program untill They started cutting down on the incentives with all them wired not too smart algo tricks.

europeforvisitors

3:23 pm on Nov 13, 2005 (gmt 0)



Just had a look at my states again. Them $3-$5 per/c pages suddenly making only $0.01-$0.04 for three days strait with the same ads on, same traffic and same sources of traffic.....you must be kidding EFV.....smart pricing is nothing but a not too smart webmaster shafting tool, IMO.

If it were nothing but a "webmaster shafting tool," why wouldn't it affect publishers across the board?

petra

3:26 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Them $3-$5 per/c pages suddenly making only $0.01-$0.04 for three days strait

seems like made for adsense pages that finally got detected by the smart pricing algo :@)

petra

3:33 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



There are so many better paying alternatives out there...you bet it is. I have no doubt G are already seeing a steady drift in the number of daily impressions network wide. How do i know?....their new affiliate program speaks a thousand words.

[webmasterworld.com...]

As I said before, all decent programes will have their version of smart pricing, even Y!

jonathanleger

3:46 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Just throwing in that I agree with those who are saying that there is no way for Google to know the conversion rates of advertisers (at least of the many who don't track conversions), and therefore to attempt to modify the earnings per click based on the expectation of conversion is ludicrous.

Honestly, it really doesn't matter how much data you have about websites and searches and clicks, if you don't know how well each particular site converts, you simply can't make a call on how well it probably converts. Even if you have the conversion rates from 100 similar sites, there are just too many variables to try and guess at the conversion rate of another site.

I personally don't think Google is being fraudulent, I just think it was an attempt to get advertisers to put ads into the content network. That worked very well as a marketing tactic, but that's about it.

caspita

3:55 pm on Nov 13, 2005 (gmt 0)

10+ Year Member




Just throwing in that I agree with those who are saying that there is no way for Google to know the conversion rates of advertisers (at least of the many who don't track conversions), and therefore to attempt to modify the earnings per click based on the expectation of conversion is ludicrous.

Wrong!, Google has the easiest way to know if a site converts even if there is no tracking in place, GG just relays in the Advertiser's fact that if the 'site' is choosen for CPM it is because its quality and good ROI. Let's face it, seriuos advertisers analize their AW stats, sources, etc. They identify the good and bad sites, they then recomend them thru CPM, if a site gets CPMs it is likely GG will think it should be paid more. That is for me just one of the many ways of knowing which sites do better.

sailorjwd

4:03 pm on Nov 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Here's an example of good smart pricing:

This morning I noticed one page getting too many clicks.

I immediately removed adsense and notified G about it.

Smart pricing lowered the value or discounted the clicks so that the net result was about 5cents vs normal EPC of 50cents.

SP in this case worked well to protect the advertiser, which I am one too.

Max_M

4:06 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



seems like made for adsense pages that finally got detected by the smart pricing algo :@)

Seems like a silly (wrong) assumption made by someone who hasn’t been affected by smart pricing just yet. You'll be talking differently when it bites you...i have no doubt.

My sites are not made for adsense they are online since 1999 and cater for various specialised trade industries.

dzcap

4:12 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



i hope they get rid of the smart pricing which is just another wording to earn more of the publishers money

Max_M

4:32 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



why wouldn't it affect publishers across the board?

EFV, you've been saying the exact same when webmasters were complaining about their content sites disappearing from the serps for no apparent reason (bourbon etc.). Then a few more updates later and look at the number of posts on the G update threads, they are breaking new records.

The SP problem is real and many webmasters are affected just like the google jagger update sage is real.

The thing i find most intresting with smart pricing is the fact that the same pages (with same ads, traffic etc.) revert back and forth like a yo yo. You can have 3-4 days of high paying clicks and then suddenly 1-2 days of $0.01-0.04 clicks and then back to $1-$3 and round and round it goes. It just doesn’t make sense. How come the same pages with same advertisers on can fluctuate by such margins?. I just can’t see all advertisers (at once) suddenly deciding to reduce their payout by so much and then ramp it up back again by so much all at once. There is something very fishy about the whole thing.

petra

4:44 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Seems like a silly (wrong) assumption made by someone who hasn’t been affected by smart pricing just yet. You'll be talking differently when it bites you...i have no doubt.

Seems like a silly wrong assumption on your part.

I already got hit by SP January 2005, but instead of crying about it I had a re-look at my site from an advertisers POV, turned it into a site that converts, and my revenue is back and almost exceeding what it was in January.

david_uk

4:47 pm on Nov 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I hear what you're saying David UK but the at the end of the day we all entered into this program knowing full well that Google and Google alone decides how much cut to give you and at the end of the day that is the bottom line. For publishers who don't like Google's "unfair" policy... the door is wide open .

Yes - that's always an option! However, I'm likely to be staying with Google in the short term. I'd just like them to fix the stupid faults in the system. I think competition has to be a good thing, and it seems to be starting to bite.

Having said that, I've just finished writing a book on my site's topic. I'm going to be advertising that on my site (obviously). If that takes off, then it's possible that adsense will lose some prime ad real estate. If that happens I'll be sure to send them an email telling them, and blaming their stupid smart pricing policy :)

Visi

4:50 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Perhaps some in here don't realize that smart pricing originated in April 2004. We have all experianced it and to those publishers who have been in adsense from the beginning the "broad" match changes probably had a greater impact, at least to us.

Again I fail to see how people are making the decision that their drop in revenue is due to "smart pricing"? Please enlighten me as to how you make this distinction....versus the other factors in a CPC business model.

<just feel left out...since not bright enough to understand how you accomplish this> <bill pass the beer...need to get more creative here:)>

europeforvisitors

5:00 pm on Nov 13, 2005 (gmt 0)



EFV, you've been saying the exact same when webmasters were complaining about their content sites disappearing from the serps for no apparent reason (bourbon etc.).

No, but I have said the same thing when publishers have accused Google of "cutting the payout percentage" just because their own earnings have declined.

Then a few more updates later and look at the number of posts on the G update threads, they are breaking new records.

This isn't the Google Search News forum, and this certainly isn't a Google Update thread, so please let's not get sidetracked by discussions of Bourbon, Jagger, etc.

moTi

5:28 pm on Nov 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



like most others, i believe i've been hit by smart pricing at some point. but who knows for sure..
after all, my sites receive a decent and rock-steady epc for months now and i really wonder about those complaining their click price varies by 10000% (1 cent to 1 dollar).
if this is true, you guys need to check up your sites instead of blaming google. if smart pricing was the cause, there has to be something seriously wrong with your whole content structure.
i don't want to be punished for publishers who don't get their act together, since that would be the consequence of abandoning smart pricing. do your damned business and deliver qualified traffic instead of chasing for clicks!

dzcap

6:04 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



fyi all type of sites are being smart priced like no tomorrow

DavidDeprice

6:20 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



what do you mean "all types of sites are being smartpriced"? Only sites that are being smartpriced are being smartpriced. The sites I run actually sell stuff, so my assumption is that "my" adsense advertisers get very good conversion (simply guessing by what conversion I get for stuff I sell). There are plenty of us, who don't get smart priced, DZCap. You said that you start several sites a week in one of your posts. If you know how smartpricing works from Jenstar posts, you should be aware that it's your account that gets smartpriced, not specific sites. I've never seen any of your sites, so I don't know if these are crap sites or not, but if you start about one hundred sites a year, then undoubtedly some of them are going to provide very little value to advertisers (simply statistically speaking). It's natural that you'll get slapped by smart pricing, so I am not quite sure why are you so upset? What makes you think that Google should not apply smart pricing to you? If you have so many sites, are you sure that every single one is providing value to customers?

dzcap

6:45 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Did you happen to fail English? I said all type of sites, not all sites, that's a big difference. Putting up sites weekly doesn't mean they're crap. There's something called teamwork, ever heard of it?

BeeDeeDubbleU

6:58 pm on Nov 13, 2005 (gmt 0)

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



Scratch ... hissss!
:)

DavidDeprice

7:00 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



The only types of sites that get smartpriced are the ones that get smartpriced. Plus, I've never said your sites are bad, since I have not seen them. But I am talking about statistics here. Team work has nothing to do with it. McDonnalds has tens of thousands of restaurants, and some of them AREN'T profitable, teamwork or no team work.
Hundreds of hotels will be build this year around the globe and some will lose investors money, teamwork or no teamwork. Every year 1.5 million books (new titles) are published, and most fail, teamwork or no teamwork. If you start 100 sites each year, there is a 100% guarantee that some of them will NOT CONVERT, teamwork or not. You'll get smartpriced because of that.

dzcap

7:09 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Such horrible comparisons. Of course there are bound to have some sites not converting, and that's when smart pricing comes in and smart price the ENTIRE account. FYI, teamwork means more production, increased efficiency, higher quality, etc. thus less low quality sites.

DavidDeprice

7:16 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Well, that's what Jenstar said - the entire ACCOUNT will get smartpriced. Now that you know that and agreed that some of your sites will not convert well, why are you surprised? You may not like it, but these are the rules, at least for now.

dzcap

7:21 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Where did I say I was surprised? You didn't realize all along what I was complaining about? So did you happen to fail English? Yes..?

europeforvisitors

7:33 pm on Nov 13, 2005 (gmt 0)



FYI, teamwork means more production, increased efficiency, higher quality, etc. thus less low quality sites.

Not necessarily. It can simply mean a greater volume of sites cranked out by underpaid employees, penny-a-word freelancers, or unpaid wannabe authors who know little if anything about their topics.

DavidDeprice

7:50 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



teamwork has nothing to do with how successful your site will be. Plenty of good solo sites and crappy sites created by several people.

dzcap

8:04 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



I guess Google got this big without teamwork, makes a lot of sense.

DavidDeprice

8:08 pm on Nov 13, 2005 (gmt 0)

10+ Year Member



Teamwork is a management/organization topic. We are talking about AdSense. Your statement "my sites are good because they are a product of teamwork" is irrelevant.
Google is a product of teamwork, but so is Infoseek or Altavista. Don't try to cover your behind with "teamwork". There is a very good chance that you being slapped with smartpricing is a direct result of the fact that you crank out several sites each week, and teamwork has nothing to do with it.
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