Forum Moderators: martinibuster
Although it is aimed at potential AdWords advertisers, there is still a lot of good info in there for AdSense publishers, and helps fit AdSense into the bigger picture...
Google has a lot of information about each click that you're recieving, we know which website it comes from, and we know the history of how well clicks have performed. Based on that information, if we see that a click may have lower value, we will automatically adjust downwards the price you have to pay.
How can they tell how well a click performed? Is this connected to the google adsense conversion monitor?
If so, this may explain the drops in EPC (a recent dramatic drop for me :()- but should adsense providers be penalized for an advertiser's sites poor conversion rates?
My feeling is they base it on time spent on the page before hitting the back button, and thereby reloading the adsense page on the originating site. Again though, we get penalized for a advertiser's sites poor conversion.
How does google know how a site running ads "performs" - if the destination is using the tracker from google then they "know"
if they aren't (and most are not!) - I think you are 100% correct on time spend on advertisers page before clicking the back button . . .
And I think smart pricing looks at "buy" vs. "browse" themes of the content and maybe the overall site
This is certainly technically feasible, but who knows if this is what Google is actually doing.