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October 2007 eCPM changes?

comment on recent CPM drop

         

JamesR3

12:29 pm on Oct 27, 2007 (gmt 0)

10+ Year Member



Several have commented on a possible SmartPricing/CPM glitch/change here: [webmasterworld.com...]

ASA seems to be implying that no glitch exists. But, given that multiple people are are reporting a similar, and substantial, CPM decrease, SOMETHING is going on. How is your CPM this week as compared to last month? If down, does it vary across channels, or it is evenly down?

potentialgeek

7:43 pm on Oct 29, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I agree with the sentinment that smart pricing is a fact of life and a reasonable approach to fair business online, but you have to wonder what great new wisdom Google suddenly found a few weeks ago that it couldn't get in the last four years, which immediately made it think it'd been charging advertisers too much all this time, and that they'd been willing to pay.

The only real way to find out if smart pricing has indeed occurred is to see if advertisers have in fact paid less. So I just asked the folks over in the AdWords forum if any of them have seen big ad price drops recently.

[webmasterworld.com...]

If none of the advertisers have paid less (e.g., by the % amount you say you've lost), obviously it's not smartpricing. Google just gave itself a HUGE RAISE.

p/g

zett

8:26 pm on Oct 29, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A few thoughts -

1) Dropping eCPM is not a new topic. The fact that the eCPM varies like a roller coaster has been reported since the beginning of Adsense. The nature of the topic (it's all about the money) is a guarantee for getting attention of webmasters running Adsense.

2) The best way to compare values is indeed "same period to same period", EVEN IF there are other variables influencing these values. Otherwise we would be completely in the dark, unable to compare/discuss anything. I guess this is the ultimate desire of Google, a wish come true. No more nagging questions on eCPM, revenue share, or revenues. Silence is golden, at least for Google.

3) Advertisers are given more and better tools which may certainly influence publishers metrics. I just wonder again and again why we as publishers do not get better tools, too?

4) We don't know what we don't know. Some of the statements collected in this thread (and others) indicate that "Google has cut the payout", and I am happy to cite my own lower earnings as proof. I can not comment on whether all publishers are seeing lower earnings. Only Google can. Google's quarterly earnings reports is no help, as we do not know the split between large publishers with sweetheart deals (e.g. a 100% revenue share) and smaller publishers who probably get significantly less. PLEASE, LET'S JUST TOSS THE REVENUE SHARE MENTIONED IN THE QUARTERLY EARNINGS REPORT INTO THE BIN. Where it belongs.

5) AdSense may be an auction-based marketplace, so volatility shouldn't come as a surprise. However, if this were a real market, we would have better tools to control our end of the stick, e.g. powerful filters like "by topic", "by advertiser", or "by keyword". As we are kept 98% in the dark about what goes on behind the scenes, I think it is fair to accuse the Google of maniplating the numbers.

6) By 2006 every serious webpublisher had heard of Adsense. Those who thought it is worth a trial did that trial and decided whether to implement the service. Where, I wonder, are coming the all those quality publisher from? Is there an unknown source somewhere? I also wonder why Google is not enforcing their own quality guidelines for publishers, and advertisers?

The answers to those questions, well, only Google knows them.

icedowl

9:22 pm on Oct 29, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Comparing October 2006 to October 2007 - earnings for October 2007 is only around 20% of the earnings of October 2006.

Yes, I admit that I am responsible for a good portion of this major drop but I can't say that I caused all of it.

  1. I've done a total site redesign and have changed which adblock formats are in use as well as their locations. They may not necessarily be in the best heat map locations but they look a whole lot better where they are now located.
  2. I've lost some traffic as well as having traffic sources shift. This is mostly due to having had to change every page's URL to accomplish my goal of having a nicer site for my visitors. Funny thing - page views are running about the same as they did a year ago, probably due to easier navigation.
  3. The content of my pages has not changed.
  4. PR has gone up.
  5. Backlinks are up.

Yes, we are the mushrooms.

sutrostyle

12:39 am on Oct 30, 2007 (gmt 0)

10+ Year Member



ecpm is down -30% of one year average starting at the time when the channels were broken.
Most likely, channels did not just break by themselves all of the sudden- they pushed a new smartpricing algorithm that had a bug. The bug has been fixed, but the new algorithm seems to remain deployed.
We are starting a transition away from Google (it will take us up to 4 months), but one should not view this a "punishing" Google- they most likely do not care and will not notice this. We have more than 50000 unique visitors per day.

Scurramunga

1:07 am on Oct 30, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



...one should not view this a "punishing" Google- they most likely do not care and will not notice this...

i suspect that you are right, as publishers are an unlimited resource for Google.

andrewshim

2:19 am on Oct 30, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Fwiw, I'm doing better this month over October 2006, although I also have a dramatically lower eCPM this month over last month.

good to know I'm not alone.

as publishers are an unlimited resource for Google.

which is why I'm trying my best to diversify and reduce dependence on Goog. In fact, I try to invest as much of my online earnings offline...

I don't know when the next bubble is gonna burst... and it may be Google...

sutrostyle

3:10 am on Oct 30, 2007 (gmt 0)

10+ Year Member



I don't know when the next bubble is gonna burst... and it may be Google...

I think Google as a business is overvalued, but it's certainly *very* valuable overall. The advertising prices will go down for sure (there are several reasons for them to go down, and no reasons to increase), but Google will offset that by volume. It's the individual publishers that will take a hit.

Scurramunga

3:22 am on Oct 30, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google will offset that by volume. It's the individual publishers that will take a hit.

This is probably why Google regards the MFA as a valuable resource rather than anything else. Ad prices can remain relatively low whilst Google's overall income is maintained by an ever increasing volume of publishers.

JamesR3

4:03 am on Oct 30, 2007 (gmt 0)

10+ Year Member



For those asking if we are comparing apples to apples, let me say YES. Trust me, we analyze our data every which way, using actual statistics if need be (gasp!). Compare this week to a few weeks ago, this month to last month, or October 2006 to October 2007. Any way you slice it, this month is awful in terms of CPM, and the variance if far out of the norm. It's NOT the typical "rollercoaster" some ascribe this too -- this amount of variation has never been seen before in the several years AdSense has been on our site without us being able to point to a cause. This is a real, albeit black-box, change, which I can only hope is not permanent. I really like the "channel bug messed up smart pricing" theory, since that means they will fix it, but so far it doesn't hold water: No confirmation from Google and no fixing of CPM since the channel bug was fixed (although I have heard they only update that once a week, one would think perhaps in such a drastic situation that they would alter that policy if it were truly a mistake).

[edited by: JamesR3 at 4:11 am (utc) on Oct. 30, 2007]

btas2

4:55 am on Oct 30, 2007 (gmt 0)

10+ Year Member



Just another data point. My CPM has really tanked. My site has been running for many years and earnings have always been quite predictable, but my CPM has recently started to slide, today being the worst day I can remember for a long time. Mondays are always my best day (Saturdays are my worst) and I'd say that today earnings are about 50% of what I'd expect, despite my traffic and click through rate being normal and other affiliate advertising on the site converting as normal.

Something has happened, but as usual with Google, we have no idea what or why.

I'll give them another month, but if I don't see some return to "normal" levels, I'm going to start switching out some Google ads to see if I can't do better with someone else. I did run tests with Yahoo, but I did not get good results, so I need to spend a little time researching what else is out there.

Luckily my affiliate earnings have been growing faster then Adsense revenue has been dropping, so I may just run more affilate ads for a while.

IanCP

5:10 am on Oct 30, 2007 (gmt 0)

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



I have spoken directly with many of my advertisers since they are friends too and they have NOT changed their CPC

I hope this is within our TOS.

A fellow on another list not related directly to AdSense had this to say from an advertisers perspective:

The fact that almost no one uses the content network correctly is exactly the key to making it work phenomenally well. It my own testing I can buy clicks on the content/site-targeted network 81% cheaper than PPC (which is highly competitive and often overbid).

Since the content network is generally inefficient (relatively irrelevant ads, in your own words) it is also priced accordingly. Very cheap. If you do site-targeting right (requires automation like Site Sniper Pro or CPM Scanner) you can serve laser-targeted ads at extremely an low price point because so few marketers do it right (they just let Google decide which ads go where and it leads to poor results).

So, yes, most advertisers don't use/like content ads (especially if they pay the same bid/click prices). But, then again, most advertisers suck. Rarely will following what "most" people do lead to extraordinary results (this forum is a great example of that... no offense intended).

FWIW - And I offer no personal opinion

nomis5

10:38 am on Oct 30, 2007 (gmt 0)

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



Some sites will be up, some will be down. I gave up my day job early this year and concentrated on the sites. My Google stats for two sites have improved as follows (Oct 2006 compared to Oct 2007):

Page impressions up by 80%
CTR up by 590%
eCPM up by 351%
Earnings up by 613%

Non-Google earnings have increased by even more.

I am a bit reluctant to publish the figures here for many reasons; one is that maybe others will see them as either untrue or boasting. If that's how I feel (right or wrong), you can bet that others who have increasing earnings may well feel the same.

Maybe that lends some weight to the argument that the Google payout is reasonably steady year on year, it's just that some publishers are on the up cycle and others are on the down cycle. The "downers" (I've been there and will be again) are more vocal and with very good reason.

For info, the sites are not in the premium publisher bracket, I get no special attention from Google. But the volumes on the sites are large enough for the above stats to be statistically relevant.

frakilk

10:58 am on Oct 30, 2007 (gmt 0)

10+ Year Member



I reached a new milestone yesterday but not in a good way. For the first time ever my eCPM was lower than my CTR. Lowest eCPM this year. And my channels are still reporting incorrectly.

I don't think it's unusual to find people linking the glitch to their slump in earnings. What I saw yesterday was not normal behaviour for my account.

zett

12:46 pm on Oct 30, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Nomis5,

just out of curiosity - what pageviews and unique visitors (roughly) did you have last year? And now?

HuskyPup

1:34 pm on Oct 30, 2007 (gmt 0)



I have spoken directly with many of my advertisers since they are friends too and they have NOT changed their CPC

I hope this is within our TOS.

ROFL...it may come as a surprise to some AdSensers however some of us do have real bricks and mortar businesses selling actual physical products. We speak/write with many of our widget trade friends on a regular basis to discuss how searchers found our sites that just happen to be the largest trade widget network of sites on the Internet.

This is our data, not God Google's data.

As many know we removed AdSense from all of our sites after just over a thousand clicks with our eCPM over the past few days having dropped from around 10% to around 4%. That's within G's T&C's in case you were wondering.

To put this into context, apart from May's period with a bad data push, our eCPM never went below 8% and when that happened it would only be possibly one day a month and that is after 4 years of AdSense publishing.

This morning we have reinstated it on one site and after the first 100 clicks it has already jumped by 55% and we shall continue to monitor it through the day.

Try and bury your heads in the sand, the fact is that this has been an extremely bad data push/algo implementation for SOME of us. I do not doubt that many are not seeing any problems however there are far too many posts here from long-time AdSense publishers experiencing IDENTICAL metrics.

If many were reporting varying data then it would be puzzling but they are not, check the posts again and it is consistently reported as -30 to 33% with Monday being at up to -50%.

Needless to say, the AdSense team have not responded to any e-mails, not even canned responses!

Great business communication eh?

potentialgeek

3:04 pm on Oct 30, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I think it's about time this no-end-in-sight major glitch with no-communication-from-google gets a news report. Google hates answering us so it's the only hope for publishers to get Google's attention.

Has anyone here already contacted the media? A tech news reporter? Which news organization would be interested? I think it would quote you without giving your name as they've done in the past.

A glitch for a few days I'd let go, but this 10-day-old screw-up by a major corporation with huge losses for some people every day is getting absolutely ridiculous!

How much longer are we going to put up with it?!

p/g

ronton45

3:47 pm on Oct 30, 2007 (gmt 0)

10+ Year Member



Has anyone here already contacted the media? A tech news reporter? Which news organization would be interested? I think it would quote you without giving your name as they've done in the past

I've seen some news reports but nothing that would reach a wide audience.

I'm surprised that this story has not made it to the front page of digg. Why dont we all log into our digg accounts and make this public?

HuskyPup

4:02 pm on Oct 30, 2007 (gmt 0)



Apologies, I've just noticed a mistake!

Where I quoted about 10%, 8% and 4%, it should have been about USD 10, USD 8 and USD 4.

Sorry for any confusion.

ken_b

6:18 pm on Oct 30, 2007 (gmt 0)

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



My eCPM for October is up about 9% compared to Oct 2006.

walrus

6:47 pm on Oct 30, 2007 (gmt 0)

10+ Year Member



I have spoken directly with many of my advertisers since they are friends too and they have NOT changed their CPC

I guess a temporary glitch is one thing but an going one is another.
Heres hoping you get a click dump or an adjustment, otherwise it'll sure seem like they are taking more.

sutrostyle

8:10 pm on Oct 30, 2007 (gmt 0)

10+ Year Member



[techcrunch.com...]

I wonder if the timing of this report is coincidental, or this is actually why channels stopped working and then ecpm dropped.

btas2

8:20 pm on Oct 30, 2007 (gmt 0)

10+ Year Member



I doubt it. My page rank is unchanged and the blog link farms don't send me any traffic, so it shouldn't affect me in anything but a positive way. My overall traffic numbers haven't changed in the last month or so.

However I have now taken the step of removing AdSense from my home page (which gets a good fraction of my web traffic) and replaced it with ads from my best performing affiliate accounts.

If I see the eCPM go up on some of my other pages I may switch back, but if AdSense is going to pay me a couple of cents per click, I think I can do better with carefully selected alternate advertising.

AdSense has some 'splanin to do on this one.

BTW has anyone seen eCPM go UP? I mean if advertisers are paying the same and a bunch of us have seen eCPM go down, if Google aren't paying themselves more, some sites should be seeing eCPM go up as much as others are seeing it go down, right?

HuskyPup

9:23 pm on Oct 30, 2007 (gmt 0)



BTW has anyone seen eCPM go UP?

All day we have been monitoring the site we have replaced the AdSense code. The CTR is now back at absolutely normal levels however the average EPC, therefore eCPM, has been consistently running at 66% of average.

I wonder/hope if they're getting on top of their bad data push and we'll see things return to normal levels soon?

Let's hope so since I've taken a lot of calls today from site advertisers asking why we had removed AdSense!

Needless to say they were quite perturbed when we told them what had been happening which then leads them to question the AdWords program.

G must have cornered the market in bad CRM!

arpecop

10:05 pm on Oct 30, 2007 (gmt 0)

10+ Year Member Top Contributors Of The Month



if your ecpm is under a dollar welcome to the "smart pricing club", you're talking about 30% drop in income and call this smart pricing! c'mooon
get me out of this, I am sure there is a way and somebody know it

HuskyPup

10:17 pm on Oct 30, 2007 (gmt 0)



if your ecpm is under a dollar

Without re-reading all the threads I don't believe anyone has written about an eCPM of less than a Dollar less 30%.

Personally, during this debacle, I have gone from a yearly average of more than USD 10 down to USD 4 and now back up again to just over USD 6.

All year 90% of my eCPM has averaged within 10% either side of that average and with the volume of clicks/pages I have when something goes wrong it JUMPS off the screen and grabs me by the throat immediately!

It ain't rocket science for me:-)

arpecop

11:10 pm on Oct 30, 2007 (gmt 0)

10+ Year Member Top Contributors Of The Month



Just don't made changes, or any changes to your site and everything will stay at this level 20/30% or whatever you say. We talk about "rocket science" here and this is exactly what adsense program is, in both cases we don't know how to build a rocket or what's behind these ads, but there is a steps all we can follow.
excuse my englisch

frakilk

11:19 pm on Oct 30, 2007 (gmt 0)

10+ Year Member



Up until yesterday my EPC was within normal levels so I wondered why others who experienced the glitch were so badly affected. Then yesterday just like that my EPC also tanked. Looking back at my channel stats for the last week I have seen no fixing of the data. Oct 24th still shows zero across the board for my most popular channel. I'm just speculating here but a smart pricing iteration may have taken place which factors in the buggy channel data hence the nose dive. If that was the case then Google should credit the lost earnings to my account. That's never gonna happen though.

Some further analysis based on my stats:
- This October has seen both the highest peak and lowest peak of EPC since the start of March. EPC had been at respectable levels until it tanked unexpectedly yesterday.
- Compared with my URL channel, 10% of custom channel data for October is still nowhere to be seen.
- Despite the fact that my site has over twice as much content and traffic has increased by 40% I am now earning less from AdSense then this period last year.

Let me just reiterate, the communication from Google surrounding the channel bug has been and still is APPALLING. What's worse is that what little communication there has been (totalling 2 forum posts at WebMasterWorld, despite the fact they have an official blog at their disposal) it is also erroneous. In the last forum post by ASA we were told the bug was fixed. IT IS NOT FIXED. With all due respect ASA if you don't even know whether a bug is fixed or not how can you be sure that it hasn't affected earnings.

HuskyPup

2:16 am on Oct 31, 2007 (gmt 0)



we don't know how to build a rocket

Maybe you do not however I know when something is drastically wrong since it is plainly obvious since my degrees in both pure and applied mathematics, and yes I could have gone on to rocket scientry, shout at me and jump off the screen when something is wrong.

Maybe that is why I am one of the AdSensers who first notices these glitches, they indicate serious flaws in bad data pushes and erroneous algo applications. G is not the only company who employs intelligent people which, I assume, may surprise some people, especially Google itself!

They do not have the monopoly on brains and talent, a fact that would be good for them to remember.

vampke

8:36 am on Oct 31, 2007 (gmt 0)

10+ Year Member



I'm glad to see I'm not the only one with problems, on the other hand it's not very comforting, this means the system is pretty random...

I actually had VERY severe issues with my account this month. I had no info whatsoever for 2 days, no pageviews, no clicks, no income. I contacted google for this, they admitted there was a problem (though only after a second mail, the first one was a standard mail, they clearly didn't look at the account).
Apparently they sorted it but without an explanation whatsoever. It happened again a couple of days later, I emailed again, and they admitted that again there was a problem which - again - they sorted without explanation.

Today I noticed they actually adapted all of my earnings for this period downwards! In total I lost about 15% of this month's income, no explanation whatsoever! Can they just do this? This seems to me to be illegal.
I sent another email, still waiting for a reply.

HuskyPup

1:43 pm on Oct 31, 2007 (gmt 0)



I sent another email, still waiting for a reply.

This is becoming extremely disconcerting from such a supposedly people-friendly company.

Four days now with no response insofar as we are concerned which usually means, in my 40 years business experience, that something for some of us is completely FUBAR and they have no idea how to repair it!

Tuesday ended with total expected earnings for the monitored site at 60% with an EPC of 60% of average however this morning, Wednesday, has seen an even more catastrophic drop in EPC by ANOTHER 50% from yesterday.

Another couple of days like this and my eCPM will be looking like those multi million hit forum boards in the less than USD 1 range. Not bad in a couple of weeks from over USD 10 to this!

On a brighter note we are now receiving a great many e-mails from advertisers who wish to advertise direct with us since their ads are now only appearing on the one control site.

It reminds me of Apollo 13, Plex we have a problem!

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