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Smart Pricing

Is there an early warning system

         

peewhy

12:41 am on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm relatively new to Adsense (6 months) my earnings have increased each month. November was more than double by best month and December is halfway there already... so, things are looking good.

Despite the increase in earnings, my CTR has halved to about 5%, should I take this as a signal to do do some tweaking and although I have read much about smart pricing, when do I know it has happened or about to happen?

Is it inevitable?

hunderdown

2:48 am on Dec 12, 2005 (gmt 0)



Smart pricing is in effect at all times. The fact that your site has done so well (you didn't say, but I assume that your average EPC has stayed steady or even improved), says to me that you are not being hit with a smart pricing "discount."

If something changes, you could be, of course. If conversions from your site decine, if your traffic changes, if the advertisers themselves change....

But to answer your question, the declining CTR could be due to a number of things, and does not necessarily presage an impending smart pricing whack.

peewhy

7:30 am on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Is there a notification or even clue that I am being hit?

peewhy

12:24 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Can anyone help me wuth this one? ...please

mzanzig

12:34 pm on Dec 12, 2005 (gmt 0)

10+ Year Member



There is not too much known about SmartPricing (i.e. there is no specification publicly available).

However, one indicator may be that your average earning-per-click (EPC) is going significantly down compared to previous week while traffic is coming in just as always. I have not been hit that hard by SmartPricing in the past, but others have. Let's hope for them to jump in and explain things.

And no, Google won't send you a mail/notification that you have been SmartPriced.

peewhy

1:02 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hello

Thanks for that, I didn't expect a mail as such but I wondered if there was a notification on the earnings page.

hunderdown

3:39 pm on Dec 12, 2005 (gmt 0)



No, there is no notification. As I said in my post, which you seem not to have read very carefully, smart pricing is in effect at all times. It's a constant, on-going adjustment.

You may have already been "hit" by it, in other words, but the hit might have been so small as not to be noticeable, or it's been built into your site's earnings from the first week, and hasn't changed since then.

peewhy

3:50 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It isn't a matter of me 'not reading your post carefully'. it is a matter of clarification.

I could see no reference relating to whether there was some form of information relating to adjustment for smart pricing.

hunderdown

4:08 pm on Dec 12, 2005 (gmt 0)



Actually, I provided several clues about how smart pricing works, and from what I said I thought you should understand that there will be no "notification." As I said before, it's an ongoing process. There is no on/off switch. How would you be notified if it's always working, constantly making adjustments? I suppose AdSense could add another column to reports, showing "Smart Pricing Percentage Discount Applied." But that column doesn't exist, and AdSense prefers to keep the workings of SP fairly mysterious, presumably in an effort to prevent people from "gaming" it.

So, I'm sorry, clearly the problem wasn't that you didn't read the post carefully. You just didn't understand what I said. I'm sorry that I didn't explain it adequately.

oddsod

4:20 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>> my CTR has halved to about 5%
Please read the original smartpricing spin from Google. CTR has no direct influence on smartpricing adjustments. If my CTR dropped the first things I'd suspect are 1) relevancy and 2) advertisers dropping out of the market.

hunderdown

4:44 pm on Dec 12, 2005 (gmt 0)



Please read the original smartpricing spin from Google. CTR has no direct influence on smartpricing adjustments. If my CTR dropped the first things I'd suspect are 1) relevancy and 2) advertisers dropping out of the market.

Google's most unambiguous statement about this is that click-through is not directly related to advertiser ROI--which when you think about it, leaves them some wiggle room. They didn't say they never use it as a factor in smart pricing. They have also said that they consider conversions and a number of advertiser-related factors in caculating smart pricing. So, in the ABSENCE of conversion information, it remains possible that CTR (or something else that is related to CTR) is one of the many things figured into the smart pricing equation. Too many people, including me, have seen our EPC go up significantly when we removed AdSense code from pages that weren't getting clicks, and thus increased our overall CTR.

What peewhy should do about that I don't know, however. A decline from 10% to 5% might not have any impact.

As has already been said, he should watch his average EPC. If it drops suddenly, then smart pricing MAY be involved..... Or it may not be.

peewhy

6:47 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Still no wiser but thanks all the same.

hunderdown

7:06 pm on Dec 12, 2005 (gmt 0)



You're welcome. We are all in the same boat, unfortunately.

cornwall

10:32 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Try reading Jen's blog of 25 October, you will get a fairly good insight into how it works there, and what the time lag is.

(if I quote it, this will just get zapped)

peewhy

10:44 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hello Cornwall

Thanks for that...where do I find it?

hunderdown

11:30 pm on Dec 12, 2005 (gmt 0)



Click on her name in the forum header, and you'll see a site in her profile. Go there. You will have to click on "Google AdSense" to get the earlier entries related to AdSense to display.

I don't think it adds a lot to what we've already discussed but you might find the background useful.

peewhy

11:53 pm on Dec 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



" don't think it adds a lot to what we've already discussed but you might find the background useful"

(forgot how to do a quote box!)

Sadly I learned nothing from previous posts, thank you for your input all the same.

I'd like to read a piece from an authority on the subject.

hunderdown

2:47 am on Dec 13, 2005 (gmt 0)



After you've read it let us know what you learned. Maybe I'm jaded but I reread it while confirming the path to it for you, and found it a summary of what was known already, not more than that.

Unfortunately smart pricing is like what Churchill said about something (Stalin's Russia?)--"a mystery cloaked in an enigma shroaded in a riddle". Not an exact quote but you get the idea.

birdstuff

3:55 am on Dec 13, 2005 (gmt 0)

10+ Year Member



There is no early warning system for smart pricing. When it's your turn you get hit - simple as that. And eventually, everyone gets a turn. Count on it.

peewhy

11:14 am on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I appreciate that, like tax and death, smartpricing is certain. I wondered if we looked at out earnings page and it should a debit figire with a notification. Clearly not.

I wondered if we could read into a trend for instance, that would indicate a pending 'hit' such as lower CTR.

I frequeqently notice massive differences in earnings, as much as one click my make me $3.00, then two clicks make $3.30 but assumed the second was simply a lower bid.

Is it fair to say that it could be smartpricing? and/or a lower bid?

peewhy

11:47 am on Dec 13, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I have just noticed how poor my grammar is on the last post and feel the need to re-spell it.

It should read;

I appreciate that like tax and death, smartpricing is certain. I wondered if we looked at our earnings page and it showed a debit figure with a notification or explanation. Clearly not.

I wondered if we could forecast or read into a trend for instance, that would indicate a pending 'hit' such as lower CTR.

I frequeqently notice massive differences in earnings, as much as one click might make me $3.00, then two clicks make $3.30 but assumed the second was simply a lower bid.

Is it fair to say that it could be smartpricing? and/or a lower bid?

hunderdown

2:58 pm on Dec 13, 2005 (gmt 0)



I frequeqently notice massive differences in earnings, as much as one click might make me $3.00, then two clicks make $3.30 but assumed the second was simply a lower bid.

Is it fair to say that it could be smartpricing? and/or a lower bid?

Well, now I can tell you something definite. The different click values are nothing to do with smart pricing. At any given time, you have many different ads appearing on your site(s), for which advertisers have made many different bids.

As people posted in that thread about "highest EPC you have seen", there can be a tremendous range of click values on just one site--from a few cents to a few dollars.

Since smart pricing applies to an entire account, you will see your AVERAGE click value change. For example, you might currently have a click average of 37 cents. If it suddenly drops to an average of 25 cents, and stays there, and you do not see anything else that would account for the change (different traffic, different ads, etc.), then that change could be due to smart pricing.