"we're introducing enhancements to our pricing model for advertisers. Google's smart pricing has always provided better placement for better performing ads, and reduced the cost of a click to the least amount possible for an advertiser to stay above their competitor's ad. Now, with the new AdWords pricing model, we’ll also automatically adjust the price of clicks across the Google Network based on their expected value to the advertiser. A number of factors will be taken into account when calculating the expected value, including the keywords or concepts that triggered the ad. For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras."
Nuno Oliveira
If anyone finds a URL, please post it.
AdWords advertisers never have anything to fear from PPC engines, especially when MSN comes online with their program.
For example, Google is naturally constrained by competition with Overture (and soon, MSN). They are also all constrained by ROI. We all need to make a living and are not going to bid more than we can get elsewhere (affiliate programs, CPM banners, going out and getting a job, etc).
The PPC engines are constantly fighting to provide the best ROI to their Advertisers. There ability to improve ROI is directly preportional to the max CPC that users will bid.
The only thing we have to fear is our competition - the PPC engines will only provide the playing field.
AdWords advertisers never have anything to fear from PPC engines, especially when MSN comes online with their program.
I'm definitely afraid. A move like this by G may set a precedent for the PPC engiens. Why shouldn't Overture now move to taking conversion data into account for bid pricing? They would be following an industry trend, rather than being the bad guy once again.
Now if Google only makes the clicks cheaper than I thought I was going to pay, that seems like a good deal for advertisers ;) I've just never liked the idea of sharing conversion data w/ the engines.
Now if Google only makes the clicks cheaper than I thought I was going to pay, that seems like a good deal for advertisers ;)
your_store, I think you may find this to be the case. ;) An announcement on this subject will be going out to all advertisers before too long, and I suspect that many of you will be pleased.
I'm heading out of the office soon - actually taking a 'sick hour' - but will surely be back tomorrow.
AWA
Yes, this is a part of an email sent to all adsense publishers. I received it yesterday, when I was already very sleepy, and so I forgot to say that.
I just posted the part that interests to advertisers. There is another thread talking about the publisher´s point of view. Some are afraid of the changes, but I think that everything that makes the advertisers happy, is good, because it means that adsense will continue.
How can they possibly base judgment on a presumed ROI from a keyword concept? There are just so many factors and variables involved in ROI - I'm not sure how Google is going about making this determination.
Opie1Canopie
Extracts:
And now, with no change in how you bid, Google may reduce the cost for a click if that better reflects the value it brings to advertisers like you.How smart pricing works
We are constantly analyzing data across our network, and if our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.
Rest is similar but not identical to Nuno's content.
Basically, if Google sticks your ad next to something that is a long shot, they'll charge you less for keeping the AdSense program alive.
We did this when one of our previous customers sent us a link to her personal page on a free website and there was our ad.
As our budget was being pressured by too many clicks (we have a limit on what we can sell) we removed the content portion and added keywords for some of our perifial business interests.
It has worked out just great. Our total monthly billing is down (or the same) and we are doing as much business as possible.
With all of our ads at 5˘ I don't see this new plan as an incentive to restart "content" inclusion.
[edited by: eWhisper at 11:22 am (utc) on Oct. 14, 2004]
[edit reason] snipped email - Please see TOS [/edit]
Since I don't want to be associated with spam in any way, I questioned Google about it, and they said there is "currently no way to opt-out of having ads shown on email sites alone".
I also asked whether they use conversion tracking information when determining whether a click is "less likely to turn into business results". They said that they do analyze conversions.
I don't use conversion tracking, though. I complete the sale with my customers over the phone, and it could be weeks or months after they visit my site. I'm selling a low-volume, high-ticket item, so any statistical analysis of source-of-sales would surely be flawed. It sounds like the new system won't help me. It's not clear yet whether it will hurt.
Generally if someone is even *slightly* interested in you and your product, they will bother checking out more than one page.
Therefore a conversion metric you could use is PPV > 1. If a set of AdSense sites A sends traffic with a PPV of 1 and a set of AdSense sites B sends traffic with a PPV of 2 then you can safely assume that site B is sending more qualified traffic.
If your website only has 1 page, I suggest adding a FAQ just so you can tell which keywords are generating more PPV.
I don't use conversion tracking, though. I complete the sale with my customers over the phone, and it could be weeks or months after they visit my site. I'm selling a low-volume, high-ticket item, so any statistical analysis of source-of-sales would surely be flawed.
There are a few good threads about using 800 numbers for web sites to differentiate traffic leads from the web via other mediums. There are ways to track this info, its just takes a bit more effort than tossing in tracking codes.
One thing that bothered me about the changes was the announcement that ads can show up next to email.
This is one of the main reasons in my opinion that Google have introduced GMail.
Bit scary that they will file the e-mails according to the content. You can bet your life that contextual ads will be served up with the e-mails you get in your GMail box.
I think from reading between the lines, this is Google's response to Overture having a different bidding strategy for contextual ads, but with the added fact that they intend to make the keywords with non call to action connotations cheaper, or is it the ones with the sales word (buy, purchase etc..) more expensive due to the commercial element of it.
We still don't opt for content matched ads and this will not change our minds anytime soon, will take much more than that to get us involved. Opt-out of all but those sites you choose would be the only way.
For sites which have no obvious conversions, they use PPV (pages per visit).Generally if someone is even *slightly* interested in you and your product, they will bother checking out more than one page.
I see two problems with that method of conversion tracking:
1) The advertiser's site may not invite exploration; and...
2) I wonder how accurately Google can track page views on sites that are constructed as Flash presentations and the like?
This isn't as small a problem as you might think: I know of several hotels, hotel chains, and at least one cruise line whose sites drive away visitors by resizing the browser window and/or by using Flash exclusively for content. In such cases, even a high-quality prospect may leave immediately--or, if the prospect sticks around, page views may be difficult or impossible for Google to track.
Generally if someone is even *slightly* interested in you and your product, they will bother checking out more than one page.
Unfortunately, it isn't that simple. The less pages a customer views, the better the site. But only if they find the information they want. When shopping for an office chair for example, landing me straight on the page with office chairs, click to order the one I want and click to send the credit card details would be simple and perfect. And yet I have only viewed three pages! A competitor may put you on the home page, so you have to search, dig around a bit, get sick of looking and try someone else. You could have looked at 20 pages and not found what you want. The number of pages looked at does not indicate the quality of the site and would be unfair if Google used this statistic.
instead of bidding at 5 cents for some of our
clients we now have to bid at 20 cents
google has PLACE PROMINENCE OF MONEY AND
HOW MUCH YOU ARE BIDDING TO REACH THE TOP.
