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Smart Pricing

Removing advertisers with no conversion tracker

         

bts111

5:55 am on Nov 24, 2005 (gmt 0)

10+ Year Member



Has anyone removed advertisers that don't use Google's conversion tracker?

Did it improve anything?

Nitrous

6:15 am on Nov 24, 2005 (gmt 0)



How can you know?

martingale

7:56 am on Nov 24, 2005 (gmt 0)

10+ Year Member




Why would you want to? I am an Adwords advertiser as well as an Adsense publisher. I can tell you that there is NO WAY IN HELL that I am going to give Google accurate information about my conversions. I do run some conversion stuff but the numbers I feed Google are not in any way representative of my real income.

Why?

Because if Google really knew which keywords I made the most money on they would probably find some way to make me pay more for those keywords!

Few advertisers are dumb enough to let their supplier have this kind of information. Especially a supplier like Google that refuses to disclose how much their cut is or how the prices are arrived at.

jahfingers

8:58 am on Nov 24, 2005 (gmt 0)

10+ Year Member



the numbers I feed Google are not in any way representative of my real income

A perfect example of why "Smart Pricing" is rubbish.

mrSEman

1:53 pm on Nov 24, 2005 (gmt 0)

10+ Year Member



I second the motion!

NoLimits

4:10 pm on Nov 24, 2005 (gmt 0)

10+ Year Member



Exactly what folks have been saying for months now.

Google is basing publisher income on false information.

europeforvisitors

7:05 pm on Nov 24, 2005 (gmt 0)



Google is basing publisher income on false information.

Sure, they're just sooooooooo much stupider than AdSense publishers (who can only speculate on how Google implements smart pricing). Or maybe they're just randomly picking publishers for extreme "smart pricing" discounts while leaving others alone, simply because they enjoy listening to the teeth-gnashing on Webmaster World.

Is there anybody here who seriously believes that Google doesn't have gazillions of gigabytes of conversion data that can be used for statistical modeling? So what if commerce-site-x.com or affiliate-site-y.com doesn't use Google's conversion tracking--Google doesn't need conversion data from every advertiser; it merely needs enough data to make reasonable judgments about how different sites, types of content, etc. perform for advertisers.

Also, as has been pointed out in other threads, there are two "Googlefactors" that determine how much of an advertiser's bid price is actually earned by a given publisher. One is smart pricing, and the other is the AdSense compensation formula. It's certainly possible that Google favors certain types of sites or content when allocating revenues, or that there's some kind of sliding scale. (There may be other variables--besides advertiser bids--that come into play, but those are two that readily come to mind.)

martingale

7:46 am on Dec 2, 2005 (gmt 0)

10+ Year Member



To be fair they could work it out if they looked at which keywords I am willing to bid more for. Also, the conversion stuff I run is a proxy for the real information in that people who I report as "conversions" did something that indicated they were interested in my site when they got there. Not necessarily something that earned money, though.

europeforvisitors

8:02 am on Dec 2, 2005 (gmt 0)



people who I report as "conversions" did something that indicated they were interested in my site when they got there. Not necessarily something that earned money, though.

Sure, and Google clearly states that a "conversion" can be any business action that meets the advertiser's criteria. That's something that a lot of members here don't seem to grasp. (It makes sense that a conversion doesn't have to be a transaction, since the purpose of direct-response advertising is often to acquire leads, not to generate an immediate e-commerce or affiliate sale.)

DamonHD

9:58 am on Dec 2, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hi,

For my main site a conversion is NOT a transaction and does NOT have a financial value per se. I use AdWords and other ad mechanisms to get users to my pro-bono site, since simply building the better mousetrap won't have people find it and use it.

Not ALL users of AdWords/AdSense are in it for the money (and are certainly not MFAs) but that doesn't stop our conversion data going into the Google data wharehouse just for starters.

Rgds

Damon

DavidDeprice

1:58 pm on Dec 2, 2005 (gmt 0)

10+ Year Member



Look, from what we know about smarpricing, Google does not take any "non-conversion data". It simply compares conversion data from site A with site B, to make it simple (thought it's not that simple). If you have ads from folks who don't track conversion, you aren't going to get smart priced. In fact, it's probably safe to say that most advertisers don't track conversions.
As far as "I am too smart to let Google know my true conversion", that's the stupidest thing I heard, at least as far as AdSense is concerned. If the ads don't convert for all sites, there isn't going to be any smart pricing affecting all these sites just based on the fact that one ad does not convert on all sites. Smart pricing simply means that sites that are affected that week perfromed (conversion wise) worse that 49.99% of all other sites that serve AdSense ads (that's simplifying things as well, but a good model anyway).
Ask yourself - are you smart or a stupid person? Then consider the fact that there is some "average intelligence" figure that would technically make 3 billion people on planet Earth "stupid" (or more appropriately "intelligence below average"). It's just statistics, folks. Saying "I'm being smart priced unfairly" is just like saying "we need to fight poverty" - a political slogan that does not mean anything. Consider all people here at WW. Statistically speaking every second person is below average compared to all other WW members. Is it fair that I may be shorter that a WW height average? Or underweight? Or overweight? Have read more or less books than the WW average?
Smart pricing has never been intended to be something fair. It just says how your sites converts compared to "the average" based on the data that's available. Saying that Google somehow uses the wrong data or the conversion data that's available is somehow inapplicable to your site or inaccurate is akin to saying "who's there to judge if 5 feet 4 inches is short or tall?"

jadebox

2:36 pm on Dec 2, 2005 (gmt 0)

10+ Year Member



Is there anybody here who seriously believes that Google doesn't have gazillions of gigabytes of conversion data that can be used for statistical modeling?

Wouldn't it make more sense for them to use the data to maximize their revenue? They can call that "smart pricing" if they wish.

Another example is how they claim that CTR is a measure of "quality." Google is obviously very good at obfuscasion. :-)

-- Roger

DavidDeprice

4:24 pm on Dec 2, 2005 (gmt 0)

10+ Year Member



Gosh, I was too drunk when I wrote the first post - all 'em spelling mistakes I made. Anyhow, I'm sticking with what I said and being on the AdWords side (you can call me bi-Googlish), I actually see my content ad spendings increase. I used to be 100% search and now probably 30% content ads now. Before smartpricing I turned the content side off - it was not worth the money.