Forum Moderators: martinibuster

Message Too Old, No Replies

Dumping site targeted cpm

9 days in

         

david_uk

6:24 am on Oct 27, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I've been meaning to update this experiment, but forgot!

Anyway, usual disclaimers:-
Mileage may vary, get permission from whoever pays the bill before you use the phone, mobile networks may charge differently from landlines and so on.

In a nutshell, looking at the period of this month to date, with the last 9 complete days being cpm free, impressions are up 1%, clicks up 7% ands ctr up 2% over the previous part of the month with cpm ads.

Nothing stellar there, but the other metrics are quite interesting.

EPC up 35%
eCPM up 33%
Earnings up 34%

These figures are site wide, as the removal is sitewide. I would say that the improvement in some of the smaller channels has been better than the higher traffic pages, but no real pattern to it. I've seen the usual daily ups and downs, but in general I prefer to look at longer term trends. I will keep monitoring of course.

I've known you can remove cpm ads for a while but never bothered. Reason being that the stats show miniscule numbers of them being shown. So the obvious question is what other changes have happened.

Well, I've done NO work on the site the last week or so. I wanted to make no changes whatsoever so as to rule out the effect of changes I've made. There haven't been any "Upgrades" during the period of the test, and I've not seen an improvement in ad targeting. So it's difficult to see what has caused this particular rise in fortunes. However, the fact that dumping site targeted ads coincides with an immediate eCPM rise of 33% can't be dismissed as a coincidence either.

Chapman

5:01 pm on Oct 27, 2006 (gmt 0)

10+ Year Member



could it be that there are only a few high-paying advertisers

Actually, no!

The site I'm refering to is a fine art reference site that has a dirth of galleries and print/poster advertisers most all of whom I've visited and provide, it would appear, quality products or services. Since this has only been going on for a month I've put it down to some other external factor rather than true competion.

Chapman

rbacal

5:20 pm on Oct 27, 2006 (gmt 0)



but how do you measure "best-paying" if not by eCPM? That's the way to compare performance between contextual and CPM-based ads.

By total revenue?

There's no single "way" to do hardly anything. You're assuming.

rbacal

5:23 pm on Oct 27, 2006 (gmt 0)



How do Google account for cpm ads that are targeted by keyword?

sigh..

Uh. well, they don't account for them, because they don't serve them because they don't offer them?

Or am I mistaken.

danimal

5:30 pm on Oct 27, 2006 (gmt 0)



>>>if the CPM ads hadn't been there yesterday... maybe I would have had a better day<<<

in other words, google would have also had a better day yesterday if there were no cpm ads on your site... but why would google hurt it's own earnings by serving up that low-rent cpm trash, when it could have given you contextual ads instead?

i guess that it's possible, given how messed up some of these google algos appear to be, but the very few site-targeted cpm ads that i do get have not hurt my earnings at all.

every site and every situation is different, tho, so it will be interesting to see how the changes that david made pan out over the course of this month.

hunderdown

6:21 pm on Oct 27, 2006 (gmt 0)



rabacal, I think we're basically talking about the same thing. The algorithm needs to make predictions about contextual ads vs. site-targeted ads. Total revenues vs. eCPM measure pretty much the same thing, don't they?

Anyway, the important question is, regardless of how they measure it, does the algo. sometimes get it wrong...

rbacal

6:54 pm on Oct 27, 2006 (gmt 0)



The algorithm needs to make predictions about contextual ads vs. site-targeted ads. Total revenues vs. eCPM measure pretty much the same thing, don't they?

Anyway, the important question is, regardless of how they measure it, does the algo. sometimes get it wrong

I'm not really sure they DO measure the same thing, but I guess it doesn't matter since we don't know what metrics google uses to serve ads, or how they use them.

To answer your questions, whether the algo sometimes gets it wrong, the absolute unequivical answer is that across billions of ad serves, the algo will at least make one mistake.

These threads should be marked "for entertainment value only". All they amount to is that if people want to use trial and error and see what happens, that they can do so (well, if you need a thread like this to tell you that...).

There's simply not enough information about the adserving process to do anything with any efficiency. What works today won't work tomorrow, etc, what works for one page not the other. Cause-effect conclusions are impossible.

Generalizations are impossible. Resistance is futile.

hunderdown

7:52 pm on Oct 27, 2006 (gmt 0)



Agreed. There is no substitute for experimentation if one wants to find out what part of the AdSense elephant one is next to.

But it's fun to trade theories.

Lagamorph

10:15 pm on Oct 27, 2006 (gmt 0)

10+ Year Member



While my numbers are no where near most of you guys... I do notice very frequently 1 cent payouts.

My feeling has always been that the 1 cent payouts are taking up valuable real estate on my site - where I could earn 30-70 cents, I just gave that up for 1 cent.

While I believe in trying to serve the best possible ads to my audience...the 1 cent option actually encourages the MFA sites to utilize my traffic for arbitrage.

I will not take from anyone else - but I'll be darned if others take from me.

Yeah, Google is out to get you ;) People sending you money is not really people taking from you. Unless you feel somehow entitled to more than they give you.

The flaw in the logic above is you are taking a 1 cent per impression ad and comparing it to a zero cent per impression ad but using it's CPC to compare with. You're comparing apples to motorboats. That one cent payout does not mean you're losing your entitlement, it pays whether it's clicked or not. Try to find an MFA anywhere that pays a penny a view or $10 eCPM.

Lagamorph

10:18 pm on Oct 27, 2006 (gmt 0)

10+ Year Member



To answer your questions, whether the algo sometimes gets it wrong, the absolute unequivical answer is that across billions of ad serves, the algo will at least make one mistake.
At least one, but if we remember that mistakes do not always mean we become victims we can relax knowing sometimes it works in our favor.

Arctrust

3:43 am on Oct 30, 2006 (gmt 0)

10+ Year Member



Hey guys... Just to clarify - and I may be wrong....

I am thinking that if the SITE targeted ads are appearing then those are replacing the CONTEXTUAL ads which pay higher.

Would it not be true that an advertiser can commit to showing 2000 impressions and the total cost of those impressions are actually higher (in terms of committment) than an advertiser showing a few at lets say 50 cents each?

Therefore I would "assume" that it would be factored into the algo that G should attempt to dispose...(show) those ads as soon as practical.

I would think that this is the scenario where I end up with SITE targeted ads and not the higher paying contextual...

I guess in short what G sees as the total dollar of the committment could end up being more than the POTENTIAL to show a few higher paid ads and therefore shows the SITE targeted ads first.

It seems to me that good business sense from G's perspective could actually mean just that - It makes good business sense for G - but not necessarily for the site owner/publisher. There is noting wrong with that - it just means that the site owner/publisher needs to use good business sense as well.

ARC

martinibuster

4:00 am on Oct 30, 2006 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Con
I had a bad experience with site targeting when it first came out and had my sites pulled out of the system. Perhaps their algo is better now, but when it first came out I can attest it wasn't a good fit for that particular site. I remember checking my earnings and being upset because they had dropped significantly. When I checked my site I saw a single ad plastered on every page- regardless of context. My site has hundreds of topics within a niche, the vast majority not relevant at all to that lone advertiser. It was unquestionably not a good fit for that site at that time.

I suppose they're better nowadays at matching context and making sure it doesn't lose money for publishers, but it'll be awhile before I go back into the waters, mainly because of the quibble I list below.

Pro
I've used it successfully as an advertiser spending a little under a hundred dollars per day on one site, but obtaining a ton of clicks that averaged to half a cent per click. That site operator may have been earning an extra hundred dollars per day they might not have otherwise made.

A quibble
The concern I have with the CPM program is that instead of showing "advertise on example.com" they display, "advertise with Your Legal Business Name" which although it may or may not be in the whois, I find it awkward in that particular context.

While I am currently inclined to give the site targeting program another chance, I'm holding back because I don't like the way they show my legal business name.

Thez

12:25 pm on Oct 30, 2006 (gmt 0)

10+ Year Member



Just now looking at my stats from this month:

Site targeted ads represent only 2% of overall impressions, have 1/3 of the clicks that contextual ads get, and yet they have 3x higher eCPM than my contextual ads.

I wouldn't opt out. Judge the situation yourselves before making any hasty decisions.

Oh and my stats from past week or so are up as well, 20-30% incrase in daily income with same traffic and I haven't touched the site for 2-3 weeks now.

[edited by: Thez at 12:27 pm (utc) on Oct. 30, 2006]

Leonard0

2:36 pm on Oct 30, 2006 (gmt 0)

10+ Year Member



I just checked my stats also.
Site targeted ads for this month are paying about 10 times more than they were in the past. Their eCPM is higher than contextual ads but they are still appearing only a tiny fraction of the time that contextual ads are.

europeforvisitors

3:18 pm on Oct 30, 2006 (gmt 0)



I've noticed a very real decline in eCPMs for site-targeted ads lately, and those site-targeted eCPMs are noticeably lower than they were during October of last year. However, only a tiny percentage of the ads served on my site are site-targeted CPM ads, so the decline isn't worth worrying about.

It's possible that site-targeted ads are such a small part of the overall mix that one or two advertisers can have an impact on site-targeted eCPMs for any given site (even a site with reasonable traffic). Whether this is a problem obviously depends on how many site-targeted ads are being served.

Web_speed

3:47 pm on Oct 30, 2006 (gmt 0)



IMHO, site-targeted ads account for the massive jump in earnings G has recently reported. You must give it to them, this was a very cleaver use of unused inventory. We are talking billions upon billions of page impressions across the entire publishers network. Publishers get to keep a few extra CPM pennies while big G milks billions out of the entire network. Elegant & Impressive!

europeforvisitors

7:24 pm on Oct 30, 2006 (gmt 0)



I doubt very much that Google is making "billions" from ads that pay publishers only a "few extra CPM pennies." That just doesn't make sense, with CPM ads being less targeted (and therefore worth less to advertisers) than CPC ads in most cases. What's more, site-targeted CPM ads aren't designed to fill unused inventory; they're designed to generate revenue on pages where history suggests that CPC contextual ads won't perform well (even when they're available, as they generally are).

Based on my own travels around the Web, I'd estimate that site-targeted CPM ads are pocket change in the overall scheme of things. Contextual ads are far more prevalent on news and portal sites, mom-and-pop publisher sites, directory sites (including scraper sites), and parked domains. In fact, previous threads on this forum suggest that many publishers--and, presumably, users--have never even seen site-targeted AdSense ads and don't know what they look like.

Site-targeted CPM ads are like AdSense "image ads": They're a sideshow for the main event.

Web_speed

10:55 pm on Oct 30, 2006 (gmt 0)



EFV, you must be joking.

Here is something to think about.

Lets take a small to average site and assume an average of 1000 ad impressions per day (i am being very conservative here). Multiply this by only 2 cents, you get $20 p/day only from site targeted CPM. Multiply this by who knows how many web sites that are running adsense. Lets be very conservative and say that there are only 200,000 sites (over the entire adsense network) that will fit the above description....that’s 200,000 sites * 1000 impressions p/day * $0.02 = $4,000,000 p/day * 30 days = $120,000,000 per month * 3 = $360,000,000 per quarter

Mind you that i have used extremely conservative figures. G gets much more then 2 cents per impression in most cases and there are virtually millions of sites that generate 20 folds the amount of impressions i used in my example.

sideshow for the main event.

NOT at all...G are turning pay per impresssion into the main event...PPC is just a bait.

[edited by: Web_speed at 11:25 pm (utc) on Oct. 30, 2006]

Thez

11:08 pm on Oct 30, 2006 (gmt 0)

10+ Year Member



Am I just guessing, or were EFV's so called 'answers' pointed to our questions at all? I can't see the context...

rbacal

11:24 pm on Oct 30, 2006 (gmt 0)



Lets take a small to average site and assume an average of 1000 ad impressions per day (i am being very conservative here). Multiply this by only 2 cents, you get $20 p/day only from site targeted CPM.

Trying to be polite here, but dja think you might want to take a second look at your calculations above? Methinks there's a...well, numerological impairment, either at your end, or mine!

...and now, perhaps a credibility problem?

Web_speed

11:46 pm on Oct 30, 2006 (gmt 0)



numerological impairment, either at your end, or mine!

rbacal, according to my math book 0.02 * 1000 = 20. <whisper politely>...double check yours

Perhaps i should have worded it better:

Lets take a small to average site and assume an average of 1000 ad impressions per day (i am being very conservative here). Multiply this by only 2 cents per impression, you get (G gets...you get a couple of cents) $20 p/day only from site targeted CPM.

[edited by: Web_speed at 11:53 pm (utc) on Oct. 30, 2006]

Car_Guy

11:53 pm on Oct 30, 2006 (gmt 0)

10+ Year Member



When I checked my reports to see how my site's CPM ads had been performing, those ads had received many impressions, almost no clicks, and almost no earnings. If a company wants their ads to appear on my site, they're going to have to pay for it. I asked Google (twice) to remove the CPM ads, and after their second, seemingly-automated response, they stopped delivering them.

Since then, my earnings and CTR are up a fair bit. There's no doubt about the increases, although I've made other changes that may also have helped.

The thing that puzzles me about all this is not knowing (and not being able to figure out) which companies' ads were targeting my site. I'd just like to know, if only to be able to remove them from my (full) ad filter.

Whatever the ads were, nobody seemed to want to click on them.

[edited by: Car_Guy at 11:58 pm (utc) on Oct. 30, 2006]

Web_speed

12:01 am on Oct 31, 2006 (gmt 0)



When I checked my reports to see how my site's CPM ads had been performing, those ads had received many impressions, almost no clicks, and almost no earnings.

That's what i am talking about. Try strating a site trageted Adwords campigan. I would love to hear how much you had to pay G just to get a few impressions going.

[edited by: Web_speed at 12:02 am (utc) on Oct. 31, 2006]

rbacal

12:31 am on Oct 31, 2006 (gmt 0)



rbacal, according to my math book 0.02 * 1000 = 20. <whisper politely>...double check yours

Perhaps i should have worded it better:

Lets take a small to average site and assume an average of 1000 ad impressions per day (i am being very conservative here). Multiply this by only 2 cents per impression, you get (G gets...you get a couple of cents) $20 p/day only from site targeted CPM.

You're basing your "estimate" on a "conservative" figure of someone paying $20.00 CPM for site targeting?

Then you are suggesting that google is cleaning up based on this figure?

Perhaps you are new to the business?

[edited by: martinibuster at 12:38 am (utc) on Oct. 31, 2006]
[edit reason] Play nice, please. Thanks. [/edit]

Tropical Island

12:45 am on Oct 31, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Whatever the ads were, nobody seemed to want to click on them.

I think the problem with some of these site targeted ads are that they are not all that well targeted.

I recently was hit with an ad for cheap flights to India. It was totally inappropriate for my South American websites.

It started showing up regularly on my 3 sites. The reason I noticed it was that my numbers had fallen and I started checking. It did not show up in the preview tool but there it was on my sites. I can only assume it was a CPM ad.

I figured out the URL and blocked it and the next day my numbers went back up. I had made no other changes.

rbacal

12:47 am on Oct 31, 2006 (gmt 0)



I think the problem with some of these site targeted ads are that they are not all that well targeted.

Apart from the fact that you might not want your visitors to see badly targeted ads, why else would you care?

ken_b

12:55 am on Oct 31, 2006 (gmt 0)

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



$20.00 CPM

[I can only dream of numbers like that that!]

Normally I see a handful of site targeted ads running in my ststs with paltry resulting income.

BUT.....

Occasionally they run enough and pay enough to make keeping them as an option very worthwhile.

swa66

1:03 am on Oct 31, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I didn't realize I had site targeted ads running on my site.

It seems that the numbers itself of the impressions -no clicks whatsoever- the eCPM and the amounts paid tend to be funny:

  • the very low impressions day earn me nothing, (but loosing less than 10 impressions should not loose much in CPC mode)
  • the days I do get like a hundred or so impressions on the site targeted ads, I still get no clicks (=0 across all days) (I typically get 6.5% click through, so the ads aren't the best in the world or they are not tracked properly). But on those days the eCPM is up above what I typically get on the CPC side and the amounts earned vs. the impressions match up, so they must be CPM ads.

    Now loosing say a 100 impressions of CPC ads that run at a eCPM of $4.5 cost me $0.45, but replacing them with 100 CPM ads at $6 eCPM earns me $0.6 ... so I still win (as GOOG says you do).

    Yet disabling these is supposed to increase my revenue by 30%? Sure they didn't also clear the smartpricing?

    If disabling CPC disables smartpricing, increases a minimal bid, or whatever other good as side-effect, now that would be something to jump for. But so far (aside from the single digit impression days) the math does not support disabling site targeted ads yet. Unless it has one of those side effects ...

  • europeforvisitors

    1:28 am on Oct 31, 2006 (gmt 0)



    Normally I see a handful of site targeted ads running in my ststs with paltry resulting income.
    BUT.....
    Occasionally they run enough and pay enough to make keeping them as an option very worthwhile.

    That's been my experience, too.

    As for the earlier comment about site-targeted ads not always being correctly targeted, it's important to remember that they aren't supposed to be contextual. It's up to advertisers to decide whether (to use a hypothetical example) they should be running ads for boxes of chocolates on sites for pastry buffs. (The advertisers might figure "damn right," on the theory that pastry buffs are likely to be the kind of people who nibble bonbons when they aren't devouring eclairs.)

    In this respect, site-targeted CPM text ads are more likely display ads than AdSense's typical CPC contextual ads. I've seen geotargeted Midwestern "museum weekend package" display skyscrapers on a European travel site, presumably on the theory that Midwesterners who like and can afford European travel are the kind of people who'd enjoy driving to [Midwestern city] for a weekend of museum-going, dining, and shopping. Seems jarring at first, but it makes sense when you stop to think about it.

    Web_speed

    4:25 am on Oct 31, 2006 (gmt 0)



    $20.00 CPM

    For all we know...it might at times be even much more (for G that is, not the publishers). Can you really tell how many site targeted ads appeared in that one ad panel impression? You see 4-5 ads...how many of them are paying CPM site targeted rates and how many of them pay per click or perhaps both? Heh?

    One single ad impression can easily net 2 cents (if not more) in G's pockets...and believe it or not, they do!....check G’s latest inflated (surprise* surprise*) earning figures.

    [edited by: Web_speed at 4:27 am (utc) on Oct. 31, 2006]

    europeforvisitors

    4:31 am on Oct 31, 2006 (gmt 0)



    For all we know...it might at times be even much more (for G that is, not the publishers).

    For all we know, the earth could be flat, the moon could be made of cheese, and Mars could be home to little green men.

    This 154 message thread spans 6 pages: 154