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Major changes to AdSense

Pricing structure and ad relevance

         

markus007

8:04 pm on Apr 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Unless adsense is sending out a april fools joke, what do people think of the changes? Every site has a unique pricing model?

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]

pumpkin0

5:56 am on Apr 6, 2004 (gmt 0)

10+ Year Member



I'm a relatively small AdSense publisher, and I've noticed that *so far* my EPC & CTR for April are *much* higher than March. These changes appear to have positively affected me.

Sharky

6:02 am on Apr 6, 2004 (gmt 0)

10+ Year Member



With my advertiser hat on, I wrote Google and asked how the recent changes would affect what I pay for ads, and whether their "optimizations" rely on conversion tracking. They wrote back, saying that the changes did use conversion tracking data.

I wrote again, saying that I don't use conversion tracking, because it doesn't fit my sales model, and asked for more details on their "smart pricing". They said that their system reduces the cost of a click if it is less likely to turn into business results. They take into account factors such as what keywords or concepts triggered the ad, and what type of site displayed the ad. They also said that you don't have to use conversion tracking to benefit.

I also asked about how ads will be shown with emails. They said that ads will only be shown with incoming emails, on sites where users have agreed to have ads shown. Ads can also be shown on pre-approved outgoing newsletters (maybe a new opportunity for some publishers?).

To me, it seems like Google has made several important mistakes with AdSense:

-- Inadequate communication with publishers (too many secrets). For one thing, pay rates and performance are clearly communicated (and are shareable among members) by most other ad networks. It would have been nice if they had sent an email saying something like "based on our new pricing structure, our pricing simulation model shows that your site would have earned $X last month instead of the $Y that you actually earned." They must have done that kind of work internally before releasing a change of this magnitude. Sharing that kind of data would have been a good thing!
-- Trying to use a totally automated system to determine keywords and page relevance. If we could tune the keywords that were used for ad matching on our pages, everyone would benefit.
-- Inadequate reporting. Google is benefiting from the detailed stats that they gather from running ads on our pages. That data clearly has value, and should be shared with the publishers.

As others have said, content-based ads are still relatively new, and there is clearly plenty of room for competition. It seems obvious to me that you don't have to have the world's largest search engine (or even a very big one) in order to be able to compete in this space.

yoyo8

6:10 am on Apr 6, 2004 (gmt 0)

10+ Year Member



They said that their system reduces the cost of a click if it is less likely to turn into business results.

What are business results? Does that mean sales? Does brand recognition count for anything?

arubicus

6:14 am on Apr 6, 2004 (gmt 0)

10+ Year Member



yo-yo hence the term reduce the cost. At least you get something for the brand.

yoyo8

6:31 am on Apr 6, 2004 (gmt 0)

10+ Year Member



So I guess this means for businesses that are looking for quick sales of widget x, a premium will be applied for those sites where it has previously performed well?

Timeshare Guy

6:57 am on Apr 6, 2004 (gmt 0)

10+ Year Member



Well after a 24 hr test of identical Adword campaigns, one shown on search network only and one shown on context network only, it appears that ..... [drum roll please].....

I am paying ner enough the same price per click!

OK this has only been 24 Hrs, but it will be interesting to see what happens over time.

EasyMoney

6:58 am on Apr 6, 2004 (gmt 0)

10+ Year Member



[qoute]I received the exact same form letter. The problem is, my message to Google complained about a lower CTR, told them exactly why this was happening due to poorly targeted ads, and gave examples of specific mismatched ad categories appearing on my site. Of course, no response to that as they never actually READ the emails sent to them. [/qoute]

Yeah. I sent a letter to Google as well. My CTR had dropped as well. Google has replied with a chain letter as simple as that. Screw the month waiting period, I plan to drop adsense this week. This is from a guy who used to be "scared" of clickin on one of the adsense ads on his sites!

Those days are over.

sudhirmangla

8:34 am on Apr 6, 2004 (gmt 0)

10+ Year Member



I have also notice drop in CTR but my overall earning has increased a bit.

Over all I am seeing positive effect these changes.

Now each click is paying more than before

rravenn

10:42 am on Apr 6, 2004 (gmt 0)

10+ Year Member



Timeshare guy,

Can you start your own thread, maybe called the 'Twin Adsense test' so we can all see how it comes out..... This thread is getting a little long in the tooth and I think a lot of us would be interested in your out come.

RrVnN

europeforvisitors

12:30 pm on Apr 6, 2004 (gmt 0)



What are business results? Does that mean sales? Does brand recognition count for anything?

PPC ads are intended to generate a response, not to communicate a brand message. (That's why Google takes both advertiser bids and clickthrough rates into account when determining display order for ads.)

A more relevant question, IMHO, is whether Google's definition of "business results" is too narrow. Does lead generation qualify as a "business result"? If not, why not? If so, how does Google determine what's a lead?

FWIW, my own site generates substantial affiliate revenues each month--probably 2-1/2 to 3 times what it earns from AdSense, in fact. Some of those affiliate sales are immediate (people clicking on a hotel link and placing a reservation), while others may require correspondence with a human being. Does Google have any way of knowing when sales result from the latter type of inquiry? And is it basing its assumptions about "business results" on a statistical analysis of information pages in the big-$$$$ travel category or of information pages in general? I can't help wondering if some advertisers (those that sell big-ticket services rather than click-to-order now items) aren't paying less for leads than they should be paying, just because Google is making incorrect assumptions about the value of "information" clicks in a category where the record shows that most users are looking for advice on where and how to spend their money.

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