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Argh! Am I being smart priced?

eCPM has halfed from 1st December onwards

         

whitenoise

11:56 am on Dec 4, 2006 (gmt 0)

10+ Year Member Top Contributors Of The Month



Hi everyone,

For me November was a extremely good month. I was getting EPC in the $2.5 - $3 range, clicks were high, earnings were consistently at record breaking levels - life was good.

1st December rolls round and suddenly EPC drops down to the $1 - $1.5 range, yet traffic and clicks remain about the same (roughly).

What’s going on?!

I can take a look at the website with the preview tool, but the biggest country of visitors, isn't mine, so the tool only gives you an approximation of the ads being displayed. I can ban any known offenders (like ring tone ads etc) but would this just be filling up the filters unnecessarily?

Can you good people offer any suggestions?

Thanks

hunderdown

4:24 pm on Dec 16, 2006 (gmt 0)



John, unless something has changed, we are only allowed to disclose our MONTHLY earnings, not daily or hourly, so you may be treading on thin ice there.

John Carpenter

4:56 pm on Dec 16, 2006 (gmt 0)

10+ Year Member



Well, technically, the TOS doesn't mention monthly earnings. It merely states: "However, You may accurately disclose the amount of Google’s gross payments to You pursuant to the Program."

I believe that since Google expressly allows us to accurately disclose gross payments (hence earnings), it should not really matter if you disclose monthly or hourly earnings. The average hourly earnings are approx. = monthly_payment / 720 (i.e., no big secret again).

But you're right that it's not absolutely clear (earnings vs. payments), so it may be better to be careful than sorry.

[edited by: John_Carpenter at 5:22 pm (utc) on Dec. 16, 2006]

hunderdown

7:13 pm on Dec 16, 2006 (gmt 0)



I think the bit about it being monthly was clarified somewhere by ASA....

Hourly earnings are pretty variable on most sites, NOT a metronomic 1/720, and I kind of doubt that Google wants that kind of detail aired.

So as you say I err on the side of caution. When I want to talk about CTR or EPC I only do so in relative terms.

walrus

8:58 pm on Dec 16, 2006 (gmt 0)

10+ Year Member



Wow, been away for a couple weeks, this thread has gotten to be quite a read.
Thousands of new publishers aside,assuming it makes sense the sites with the most traffic would be hit the least, as it is high traffic sites that get to display the higher paying ads many more times than the lower traffic sites before the ad budget runs out, why do we see high traffic sites hit too? They cant all be generating excessive invalid clicks. It seems like an across the board adjustment or they have lost quite a few clients to MSN and Yahoo.
In a rush no time at the comp, hope that made some sense.

walrus

10:15 pm on Dec 18, 2006 (gmt 0)

10+ Year Member



Bump...I have to add that since the first big decline beginning in Sept., I had tweaked quite a bit so I actually can't compare the performance accurately except to say average CPM is still way down and not as good as last year.

John Carpenter

11:29 am on Dec 19, 2006 (gmt 0)

10+ Year Member



I think in our case the cause may have been exodus of hiqh-quality advertisers from AdWords, at least in my niche. I was used to seeing ads of one particular hiqh-quality advertiser (a big brand) on our site and in Google SERPS for our keywords. Their ads always ranked #1 both on our site and above the Google SERPS. So I went to live.com (MSN) and searched for their keywords. And, yes, their ad was there, to the right of the SERPS. This big-brand advertiser moved from AdWords to live.com (MSN) and I'm afraid that, in our niche, there were more hiqh-quality advertisers leaving AdWords. This may have been the real cause of our eCPM drop. Something probably happened in November. (I can't really believe the newly introduced Quality Score factors could have affected this advertiser. It's a big brand and the advertised products and their site are high-quality).

[edited by: John_Carpenter at 11:33 am (utc) on Dec. 19, 2006]

europeforvisitors

3:05 pm on Dec 19, 2006 (gmt 0)



John_Carpenter: Advertisers' budgets often run low (or run out) toward the end of the year, so isn't it possible that your name-brand advertiser is simply trying to make the most of its limited dollars by going with a cheaper option until January rolls around?

Also, whether the advertiser stays away from Google will probably depend on how MSN and/or other alternatives perform. So it may be a bit early to mourn the loss of that name-brand advertiser. I'd wait until mid- or late January before scheduling the funeral, although I'll concede that even a temporary loss of a major advertiser is disquieting.

John Carpenter

3:23 pm on Dec 19, 2006 (gmt 0)

10+ Year Member



John_Carpenter: Advertisers' budgets often run low (or run out) toward the end of the year, so isn't it possible that your name-brand advertiser is simply trying to make the most of its limited dollars by going with a cheaper option until January rolls around?
Also, whether the advertiser stays away from Google will probably depend on how MSN and/or other alternatives perform. So it may be a bit early to mourn the loss of that name-brand advertiser. I'd wait until mid- or late January before scheduling the funeral, although I'll concede that even a temporary loss of a major advertiser is disquieting.

europeforvisitors, I'm not quite sure why you're telling me things that are rather obvious. If you read my post, you'll see that I was merely commenting on reasons why I think our site has experienced the -50% drop in eCPM. Nothing more. So your comments are somewhat irrelevant.

walrus

4:33 pm on Dec 29, 2006 (gmt 0)

10+ Year Member



Well i have to admit i have been seeing some better ads and cpm has recovered as well. In a comparison between this year and last year it seems to be performing better. It is hard to be sure because last year i think i ran 2 blocks of ads with 1 adlinks and this year just one block of each on a page along with so many other changes.

BTW
I think EFV is just saying there is also that to consider, there seems there has been an exodus but it could also just seem like it.
If there is an exodus hopefully they are jumping from G to MSN to Yahoo and back to G again!

Drum

4:49 pm on Dec 29, 2006 (gmt 0)

10+ Year Member



I am starting to see a slight improvement, but it is not back where it was at the end of Nov.

G_Smitty

7:29 pm on Dec 29, 2006 (gmt 0)

10+ Year Member



My site was back to Pre November numbers for the last week. Today my ecpm took a nose dive even lower than Novembers fall. I hope it all straightens out after the first of the year. This holiday season has been a roller coaster ride that I have never experienced with adsense in past years.

yc168

7:03 am on Dec 30, 2006 (gmt 0)

10+ Year Member



my ecpm still 1/4. has anyone recover fully now?

indias next no1

7:26 am on Dec 30, 2006 (gmt 0)

10+ Year Member



no improvement in ecpm, nearly half the normal

Green_Grass

7:55 am on Dec 30, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



eCPM Currently 1/3 rd of normal.

Keep hoping for better times with the new year...

Scurramunga

8:25 am on Dec 30, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Mine is about 1/2 of normal. This time last year was looking much better.

Dazlug

11:05 am on Dec 30, 2006 (gmt 0)

10+ Year Member



I have seen this latest "Smart Pricing" (read: Google-f#*$!ing) since November. I am seeing half the eCPM and monthly total from September and October.

The same months in '04 and '05 were 4 times higher with the same amount of traffic. I can also say that the average bid for the keywords has not gone down.

John Carpenter

1:23 pm on Dec 30, 2006 (gmt 0)

10+ Year Member



We've seen occassional temporary improvements, but, overall, our average eCPM is still 50% of what it used to be.

Scurramunga

4:04 pm on Dec 30, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am thinking of subsituting around 80% of my adsense blocks with something else.

noodlebox

4:43 pm on Dec 30, 2006 (gmt 0)



ecpm double/trippled due to changes i made with the colours/placements/and url structures.

John Carpenter

4:50 pm on Dec 30, 2006 (gmt 0)

10+ Year Member



ecpm double/trippled due to changes i made with the colours/placements/and url structures.

Changes in eCPM that are caused by modifications of ads or content are irrelevant and off-topic in this thread. We're discussing decrease in eCPM without having modified content/ads.

noodlebox

4:56 pm on Dec 30, 2006 (gmt 0)



Yes i know :) my ecpm went down from 1-2$ to 0.05$ ... I only just managed to double/triple it with modifications, and only giving you guys an insight to how it might be that your ecpm has dropped. google might be ensuring people make an effort and not just copy+paste ads on to pages.

John Carpenter

5:03 pm on Dec 30, 2006 (gmt 0)

10+ Year Member



google might be ensuring people make an effort and not just copy+paste ads on to pages.

Rest assured that I have not just "copied+pasted ads on to pages".

Intensity

5:15 pm on Dec 30, 2006 (gmt 0)

10+ Year Member



I have seen a steady decrease in ecpm, also nearly half the normal. I don't think it is a season trend

europeforvisitors

5:46 pm on Dec 30, 2006 (gmt 0)



google might be ensuring people make an effort and not just copy+paste ads on to pages.

What's wrong with copying and pasting ads onto pages? That's how advertising is supposed to work. (AdSense wasn't invented as a tool for the MFA or "AdSense marketing" crowd--it was conceived as advertising for real publishers.)

Scurramunga

10:24 pm on Dec 30, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



google might be ensuring people make an effort and not just copy+paste ads on to pages.

I doubt it.

sailorjwd

10:49 pm on Dec 30, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




EPC 1/4 of this time last year.
Visitors down to 1/4 of last year (thanks adwords).
Earning 1/8 of last year.
2x content compared to last year.

'people make an effort'

What the heck is that supposed to mean?

Scurramunga

3:09 am on Dec 31, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am begining to think that all this has something to do with what was previously mentioned in this thread regarding Italian Adsense's response

foxtunes

9:29 am on Dec 31, 2006 (gmt 0)

10+ Year Member



ECPM stayed amazingly consistent since jan 2006, but in november 2006 it halfed.....Still seem to be showing quality ads, no influx of mfas. Can't tell if advertisers are bidding lower or google are skimming more profit cream off the top?

walrus

4:02 pm on Dec 31, 2006 (gmt 0)

10+ Year Member



I am begining to think that all this has something to do with what was previously mentioned in this thread regarding Italian Adsense's response

That is an interesting post, and since we know Adsense is always experimenting and its a new and developing advertising medium I guess it makes sense to expect a bumpy ride. Hopefully the slump will end sooner than later.

This holiday season has been a roller coaster ride that I have never experienced with adsense in past years.

Same here, wildest ride in 2 years.

Suprised to so few recovering to their past ecpm , good luck!

europeforvisitors

4:15 pm on Dec 31, 2006 (gmt 0)



Can't tell if advertisers are bidding lower or google are skimming more profit cream off the top?

Publishers with declining revenues are always speculating on that, but Google's overall AdSense revenue percentage from quarter to quarter is remarkably constant. It's always possible, of course, that the compensation formula changes from time to time so that some types of publishers are rewarded more (or less) than others are. But I'd guess that most EPC or eCPM declines (or increases) are caused by the inevitable changes in supply and demand that occur with auction-based pricing and a constantly changing pool of publishers.

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