what is smart pricing

details would be helpful

[Rolozo]

At last what is this "Smart Pricing" when used in Adsense world context ..

[webnoob]

in short, if your clicks aren't converting into sales then google can lower the price of your ads. hence "smart pricing".

[techygeek]

What is the time interval used by google to calculate the sales conversion ratio? Daily / Weekly / Rolling?
How often is the sales convesrion ratio updated in google systems?

[btas2]

I thought it was also based on click through ratio?

If so do they base it on ad unit impressions or ad impressions?

Since skyscraper can have 5 ads vs. a half banner with 1 ad, it makes quite a difference whether they base their calculations on the number of ads or the number of ad unit impressions.

People report better "smart pricing" revenues if they removed low performing ad units. If it were just based on connersion ratio of clicked ads, that shouldn't have much (if any) effect.

[ann]

If you do a google search on smart pricing you will see lots of ww threads come up on the subject. They would make interesting reading.

Ann

[Visi]

Smart pricing is nothing but google smoke and mirrors. There has never been any published information on this program by google only a snippet of information that ad pricing is determined by conversion possibility. No one outside of google is aware how this is applied however was announced in a time when google was struggling to get advertisers to use the content network. This was one of many strategiesused including adwords reductions and bonus use of content related ads.

[kaz]

Google's Description of Smart Pricing [google.com]

Perhaps a bit of smoke-n-mirrors and a bit of reality?

[Visi]

Nope no reality there...:)

If we (meaning google) with a limited actual conversion data decide to reduce the return on CPC ads because we can't sell them at a higher price...then we will be sure to pass the advertisers savings onto the publisher....by reducing your return.

This model was introduced when google was struggling to gain acceptance for the content side of the advertising mode...a way to reduce costs to advertisers to account for lower ROI than on search results.

The opposite effect is now happening with the introduction of CPM model in an attempt to console publishers with low CTR and revenue.