Sunday, June 11, 2006

AdSense With Sart Pricing

Protect yourself if one of your sites has a low ROI, it can affect all the sites in your adsense account. If a page has a low ROI than remove the adsense code from that page, wait a week and see if there was a change in your ad prices.

This is what google has offcially told us about Smart Pricing:
  • The price of an ad is influenced by a number of different factors. Those factors can include: the bid price; the quality of the ad; competition from other ads in the same field; the location of the ad as part of a marketing campaign; etc.
  • The ad price is not affected by the click-through rate. Sending advertisers large numbers of clicks will not increase the bid price. (That doesn't mean the CTR isn't important at all for your revenue; it's just not important in determining the amount you receive for the click.)
  • "Content Is King." Google makes it pretty clear that sites that will benefit most from adsense are those that "create compelling content for interested users." They also emphasize the importance of bringing targeted traffic to look at that content. Those are two different factors which together create a site with loyal, appreciative users... Just the sort of thing that every serious webmaster wants.

Niche websites are the best for higher CTR and fewer false clicks with adsense.

  • Smart Pricing is calculated across an Adsense account. So if you have a number of different sites covering a range of different topics and one of them delivers a low ROI, all your ad prices may be lowered.
  • Smart Pricing is evaluated weekly. If you believe that an ad is delivering a low ROI, you can remove it from your site and you should see higher ad prices within a week.
  • Smart Pricing is tracked with a 30-day cookie. Users don't have to convert immediately into a sale (or whatever will count as a conversation) for you to benefit. They can think about it for a month and you'll still get the benefit.
  • Prices may be reduced even below an advertiser's minimum bid. So looking up the bid price for targeted keywords won't help you very much; if your ROI is low, your rates could be lower than minimum quoted.

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