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  1. #1
    ABW Ambassador Snib's Avatar
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    AdSense Smart Pricing
    There's been a buzz lately about Google's Smart Pricing system. This basically adjusts your AdSense earnings based on an estimated ROI for your account. So if you've got a site that sends non-buying visitors to AdWords advertisers, Google will reduce your AdSense earnings because of this. If you send visitors that convert, your earnings will remain the same. An important point is that this is based on your full account and not each of your sites. So if you have one site that converts poorly, all of your AdSense income will be docked, not just that site.

    This is stirring mixed feelings as it's now up to the advertisers to determine what we earn with AdSense. If they can't convert, we're docked for that. It seems a lot of this is based on Google's AdWords conversion tracking system. So what happens if an advertiser doesn't use the conversion tracking? What if the advertiser using it converts poorly due to bad site design while the advertiser that converts well doesn't use it?

    One good point to this system is spam sites will earn less due to the lack of value they're adding. Maybe they'll lose motivation and stop littering the internet with garbage. It may also motivate publishers to be more selective about their AdSense placement. We might see sites with fewer AdSense ads and more content.

    All-in-all this is a valiant effort on Google's behalf as they're giving up earnings to provide a better ROI for advertisers. It's got some pitfalls, but the idea is solid.

    More information:

    http://www.jensense.com/archives/200...orly_conv.html
    http://adsense.blogspot.com/2005/10/...t-pricing.html

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  2. #2
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    Just to have the complete picture, this is the thread that has started an uproar

    http://www.webmasterworld.com/forum89/10045.htm

    Problem is, there can be horrible CTR but great conversions on a low action page, and some of it is because of mis-targeting of ads. Not all, but some of it.

  3. #3
    Prince of Content Vinny O'Hare's Avatar
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    I think its all bs ~ make quality pages and don't worry about it.
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  4. #4
    Not Verif-Lidated infoTim's Avatar
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    I'll second that. So many people spend so much time worrying about if G is doing this or is G doing that. Worrying doesn't pay the bills. Put your energy into building and improving your business and cashing the checks.
    Tim
    consultant by day, affiliate by night

  5. #5
    Moderator MichaelColey's Avatar
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    I don't think a poor converting merchant will affect you. I'm fairly sure they look at your conversion ratio compared to the conversion ratio that other publishers see with the same merchants. I can't imagine them doing it any other way.
    Michael Coley
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  6. #6
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by MichaelColey
    I don't think a poor converting merchant will affect you. I'm fairly sure they look at your conversion ratio compared to the conversion ratio that other publishers see with the same merchants. I can't imagine them doing it any other way.
    That's good thinking. The conversion issue was just something I came across when I was studying this.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  7. #7
    Analytics Dude Kevin's Avatar
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    Not to mention sites that use AdWords that aren't e-commerce sites. Don't forget to step outside of our little world and recognize that not all business CAN be tracked through Google's conversion.

    While a non e-commerce site can use the tracking configuration to see who ends up at their Contact Us page, or whatever floats their boat, that data is at best subjective. People can type "I like your site" in the contact us form, and that may not have done anything good for the web site owner.

    I bring this up because my strongest AdSense site displays VERY few ads where visitors can make a web purchase. The advertisers on my site use AdWords to BRAND as opposed to SELL.

    I hope we all recognize this, The Big G included.

  8. #8
    mega crap martyogelvie's Avatar
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    for me, Adsense was great for about 1 year.. then it started taking 2 months to earn a check, then 3.. traffic was higher but CPM was very low.. I remember reading on here once that if CPM was under $1 to remove adsense and put something else up..

    that's what I did, I put up Yahoo ads.. CPM is up UP. I am making at least twice as much with Yahoo ads vs Adsense with essentially the same traffic.
    One thing Yahoo allows you to do is target your ads to a specific advertising. I know what ads pay the highest per click so I choose to target those ads while still staying within my web sites theme... it works well.

  9. #9
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    People who sell a product have a commodity they're making money on, but for those of us who market other people's products, our commodity is the time we spend getting pages out there. It simply makes good business sense to maximize the return on the investment of time we make both in creating and promoting the pages we use to peddle others' wares.

    It's overboard and a waste of time to obsess and get fanatic about it, but there can definitely be an increase in income & ROI for our "assets" by making some adjustments.

    Not making the most of our webpage real estate isn't good business, and imho it involves more than just figuring Smart Pricing.

    Part of it can be figuring the targeting and the target audience of specific pages, and which part of the buying (or looking) cycle people are in when they're hitting the pages. There's also a difference between content pages for information and ecom-type pages that are geared to selling the products. In some niches the information is the product and clicks may be worth a decent amount, but that doesn't necessarily hold true for consumer goods - or the reverse.

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