Forum Moderators: martinibuster
For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.
[edited by: markus007 at 8:08 pm (utc) on April 1, 2004]
I think I understand what you are saying. If for example there is an adwords advertiser that is getting charged $1.00 per click and it gets clicked on two different sites, then assuming a 50/50 split both sites will get:
Site 1 = $1.00 click $0.50 {partial match}
Site 2 = $1.00 click $0.50 {perfect match}
In the new regime the split might still be 50/50, but:
Site 1 = $0.80 click $0.40 {partial match}
Site 2 = $1.00 click $0.50 {perfect match}
In this case the payout remains at 50%. However, I think that this at the very least is changing the rules of the game. Therefore, I disagree, and think that they are changing the payout structure wether or not the money is going into Google's pocket, it will still affect the publisher. Good or bad only time will tell.
I have three months of continuing revenue growth, it would be a shame to break the streak.
We can't comment on the payout formula as we have never been told what it is or whether it is being changed. What we have been told is that the price per ad for adwords customers is going to change. This doesn't affect the payout formula although they could easily change this as well if they wish.
Has this gone in to affect yet? Today, I noticed a huge increase in payout EPC versus yesterday..
It's probably on the network for six to ten days now. I've noticed that in the last week my daily earning were on the rise, with a small increase on CTR too.
The last ten days were the highest revenue, and I'm on AdSense since July'03. On the first day I noticed something going on I said to my girlfriend "Uh, that's going to be a good day". The next day I had beaten 100% of previous day revenue by midday. And it got better after this.
An AdWords advertiser can already set maximum amounts per KWP, e.g., digital cameras $1, photography tips $0.50. In other words, it is the responsibility of the advertiser to determine the "worth" of each KWP --and rightly so IMO.
Now Google is going to determine the expected value of each click to the advertiser?! I would have thought that requires a lot of insight into what happens "after the click"...
If the new policy does indeed mean what it seems to mean, I fear the quality of many AdSense sites will be negatively affected --instead of providing useful info about MyTown, USA, publishers will start providing even more "reviews" of MyTown hotels: not just to trigger the desired ads, but to get a bigger share of the pie by being a "commercially interesting" site... :-(
Perhaps the intent behind this can't specifically be mentioned, but isn't it true that under the past structure a site about cardboard boxes could put up some vague content pages about domain hosting and get the same CPC as a 'proper' site about what to look for when choosing a host.
Can't see how that can be a good thing.
Yes, some real buyers might click on it, but this is a numbers and percentages game and as an advertiser, I'd rather be paying more for more relevance. Also I don't think its true that choosing keywords in my Adwords campaign would stop Adsense ads appearing on irrelevant sites.
This is the logical way to do this type of advertising and I'm curious as to why it took so long for Google to figure it out. Not all sites are created equal and this is a fair way to handle it.
JAG
Over the last few days I have noticed that my cpc consistently on content sites has been lower than pure search .
2 of my sites increased cpc and ctr significantly and 3 decreased cpc and ctr
As an advertiser I was thinking of dropping content sites due to the ROI as could many others , so although income for many will decrease without advertisers feeling good about advertising on content sites the long term effects would be a downturn of income anyway
just my 2 cents
steve
As an advertiser, if I can pay far less than the current CPC for content ads separately (that is what Google adwords will announce soon), I will turn it on again.
Also, it's going to be more important than ever to have good anchor text from other web sites since that seems to be ranking more and more in the algo of what a page/site is really all about.
1)If the changes are some how a better thing for the advertisers, if it gets them better clicks, then that's a good thing for the AdSense program and a good thing for me. I don't mind earning somewhat less if the changes make it likely that the AdSense program will remain healthy and continue to be a source of income for me.
2)If these changes are some way for AdSense to weed out some participating sites I think that's great too. I would like the AdSense program to be more selective in choosing participating publishers. I would like AdSense to be known as a place to get quality clicks for advertisers. Right now it has more of the reputation of being second teir to the AdWords ads you see on the SERP's.
Well when EVERYONE's earning drop they can now say it is because your site is not relevant to an advertiser' who btw they have never met or discussed what the advertiser is looking for.
Look at it this way, we don't know how they calculate the money, we have next to zero real tracking and yet they send us this email to explain something that is just utter piffle. But at least we now all have a reason for the drop.
Watch out for.. "My earnings have dropped off.." thread followed by lots of "Ahh it's beacuse of the relevancy of your site". What they have user profiles of everyone who visits my sites now .. wish they would post them to me as they would be very useful.
First of all, the changes did indeed go into effect today.
The email talks about 'pages' rather than 'sites'
This is correct - the pricing for a particular ad will take into account the keywords/concepts on the page that triggered the ad, the context of those keywords/concepts on the page, and the system's calculation of the value of that combination. The value is calculated based on a large number of factors, and is constantly updated as information is fed back into the system.
The photography example was only to demonstrate how this may work - review sites across the board are not necessarily going to provide higher value to advertisers. It's a case-by-case calculation.
So, you may find that your revenue goes up, goes down, or stays the same. It may take some time to see a pattern emerging.
In the end, as many of you have pointed out, we expect it to drive growth in the advertiser base for content sites, which can only be a good thing :)
ASA
I'll be surprised if this works to my benefit. It certainly doesn't work to my users benefit yet.