Less ads more revenue? Tale or truth?

Discussion in 'AdSense' started by DaStarBuG, Jul 17, 2007.

  1. #1
    Hi

    After reading some comments about better revenue by showing less ads I wounder if that is true.

    The fact is:
    The best paying ads are the first ads that are displayed on your website.
    The more ads you display the less value the last ads on your site have
    (comparing to the first ad and depending on your keywords and keyword competition)

    But if you only show lets say one leaderboard to increase eCPM will this really increase your revenue?

    If these 4 ads shown in this leaderboard don't interest the user viewing your site you wont get a click and you wont get money from him/her.

    But if you display more then one ad on your site, e.g. a leaderboard at the top, a rectangle in the content and a link unit in the sidebar then the chances drastically increases that the user is clicking on one of your ads because it is interesting for him/her.
    Therefor you wont get as much pay for the click if he clicks a lower ad but at least you get a click.

    I for myself am normally using 3 content ads and 1-2 link units on one site blended into the content so that they don't disturb the flow of my forum.

    If you want to take a look: http://www.patientenfragen.net
    (go into any thread)

    What do you all think?
    Tale or truth?

    StarBuG
     
    DaStarBuG, Jul 17, 2007 IP
  2. Crazy_Rob

    Crazy_Rob I seen't it!

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    #2
    Why don't you do some tests of your own and then report them here.
     
    Crazy_Rob, Jul 17, 2007 IP
  3. netmarketing

    netmarketing Well-Known Member

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    #3
    I personally think that no answer could be applied on all sites.

    The only answer is testing, do them both for one week, check, compare and you will find your answer.

    I did this on different sites and testing was the only way to find out the best way to go.
     
    netmarketing, Jul 17, 2007 IP
  4. DaStarBuG

    DaStarBuG Peon

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    #4
    I did a lot of testing in the last year but my revenue is constantly increasing and I don't want to risk that ;)

    The other thing is that I run forums which are communities.
    If I remove ads and then add them later if the experiment fails I have a lot of explaining to do why I display all the ads again.

    But I am open for a discussion or if someone wants to give it a try ;)

    StarBuG
     
    DaStarBuG, Jul 17, 2007 IP
  5. Crazy_Rob

    Crazy_Rob I seen't it!

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    #5
    Test it on your unregistered visitors.
     
    Crazy_Rob, Jul 17, 2007 IP
  6. Cobnut

    Cobnut Peon

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    #6
    StarBug,

    First of all, this isn't actually a fact:

    The top ranking ad on a site is actually the one with the highest CPC AND quality score combined. Technically speaking it's possible to have an ad ranked no.1 with a lower CPC than an ad ranked no.2 or even no.3.

    However, I'll allow that it is generally true to say the 'higher paying' ads will be among the first to display on the site.

    I doubt this question can have a single all-encompasing answer because so much depends on the individual sites. Some sites lend themselves to having a lot of ad units, others don't. My own gut feeling is that any increases in earnings reported by reducing the number of ad units is more likely to be as a result of reduced ad blindness than anything specifically to do with the ads themselves.

    Jon
     
    Cobnut, Jul 17, 2007 IP
  7. DaStarBuG

    DaStarBuG Peon

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    #7
    That is what I meant. The best paying ads will be displayed in the first adsense ad (eg the leaderboard) that is loaded by your website.
    Of cours this does not mean that the first ad in this leaderboard is the best paying ad on your site, but you wount find the best paying ad in the third ad you have placed on your site.
    But that isn't the real argument here.
    The point is that many here believe that showing less ads and therefor increasing the eCPM rate will earn them more money at the end.

    I would say that this is a tale.

    I would agree here with you too.
    You can maximize your revenue by changing your ad format, placement and look depending on your site.

    But does the pure reduction of ads lead to an increase of revenue?
    I really doubt it.

    StarBuG
     
    DaStarBuG, Jul 17, 2007 IP
  8. lifetalk

    lifetalk Well-Known Member

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    #8
    Situations differ for different sites. Placement for blogs, may be different from those on a video site, etc.

    Trial and error.. that's the key. Tell us what niche your site is on, and experiment with it. Tell us the results, we'll try to help you out :)
     
    lifetalk, Jul 17, 2007 IP
  9. Cobnut

    Cobnut Peon

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    #9
    It's an interesting question.

    I can imagine scenarios where a visitor who has read your page and is then looking to move on will click the nearest link of interest. The value of this click will depend on whether it's the only ad unit or the third on the page, that's understandable.

    What I think you'd struggle to measure (without extensive testing, as suggested) is whether the increase in earnings through this practice matched or exceeded potential earnings from those who, finding no nearby link (because your only ad unit is far away on the page) simply clicked back or Home. Testing should show this but, as you say, you'd need decent traffic and data to really make the tests worthwhile and then you're looking at messing your users around and potentially losing money!

    Jon
     
    Cobnut, Jul 17, 2007 IP
  10. DaStarBuG

    DaStarBuG Peon

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    #10
    I posted the link to one of my forums in my first post here.
    It is a forum for german patients with (medical) questions.
    (yes, I am becoming a doctor early next year ;))
     
    DaStarBuG, Jul 17, 2007 IP
  11. totalmasala

    totalmasala Banned

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    #11
    can't more revenue but surely CPC does increase!
     
    totalmasala, Jul 17, 2007 IP
  12. Cobnut

    Cobnut Peon

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    #12
    Probably. But it's no good to you if you get fewer clicks!

    Jon
     
    Cobnut, Jul 17, 2007 IP
  13. Rasputin

    Rasputin Peon

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    #13
    It will depend on how many suitable advertisers exist for your page, and how much they have bid (ignoring different CTR as mentioned above, which also affect 'earnings')

    Top 8 bids, scenario 1: $2 $1.50 $1.00 0.80 0.30 0.15 0.1 0.05
    Top 8 bids, scenario 2: $1.50 $1.40 $1.30 $1.25 $1.15 $1.10 $1.05 $1.00

    Given the first scenario, you only want one ad block, because the first 4 ads pay much more - so you are better off losing 2-3 clicks in the second ad block in the hope of getting just 1 more in the first block.

    But scenario 2, where the spread of bids is much less, you should be better off with 2 ad blocks, becasue you're going to earn more overall.

    To put it more simply, if there are a couple of advertisers who are paying much more than the others, you want just one block. If lots are paying about the same you want more than 1.

    BUT advertisers and their bids change all the time, so testing today will be invalid tomorrow...although there are tools I think that tell you how much people are bidding etc.

    But there is no 'right' answer - it depends on the site and the advertisers and the placement etc.
     
    Rasputin, Jul 17, 2007 IP
  14. ZeRo_CoOl

    ZeRo_CoOl Peon

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    #14
    ^^ Very good explanation mate, koodos
     
    ZeRo_CoOl, Jul 17, 2007 IP
  15. DaStarBuG

    DaStarBuG Peon

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    #15
    @Rasputin

    There is a flaw in your argument.

    If you have more then one ad, people will still click on your first ad, no matter what.
    But the people who wont click on your first ad maybe would click on the second ad, if you have one.
    People don't read a whole page and after that click on the ad.
    They read your page and the first ad they find interesting is the one they click.

    Remember that adsense clicks are all about people getting interested in the ad.
    If the first 4 ads in your one banner are uninteresting to them they wont click at all.

    Showing more ads will get you additional clicks from users which would not have clicked otherwise.
    So at the end you will earn more with more ads, regardless of the bids (excluding PSA of course).

    Your argument would hold in the case that you display to competitive ad banners at the same spot, e.g.
    to large rectangles next to each other.
    In this case a click on the right would bring you less money.
    But here my argument is also valid as well. It is all about peoples interests in the ads semselfs.


    StarBuG
     
    DaStarBuG, Jul 17, 2007 IP
  16. ajitjc

    ajitjc Banned

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    #16
    Any way we have to make a study about it.
     
    ajitjc, Jul 17, 2007 IP
  17. DaStarBuG

    DaStarBuG Peon

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    #17
    Who is volunteering?
     
    DaStarBuG, Jul 17, 2007 IP
  18. qwestcommunications

    qwestcommunications Notable Member

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    #18
    Probably, however, its not a precise truth in that it not conclusive, but the likelihood of it being correct is probably true.
     
    qwestcommunications, Jul 17, 2007 IP
  19. DaStarBuG

    DaStarBuG Peon

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    #19
    Which argument do you mean @qwest?
     
    DaStarBuG, Jul 17, 2007 IP
  20. YeinJee

    YeinJee Peon

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    #20
    There will be no absolute answer for this argument.

    If you prioritize revenue above all else... the more ads you have, the more likely your revenue will be higher. There could be some downside though, the CPC of your 3rd ad unit might be horribly low depends on topic; sometimes I would rather improve the visitors' experience (having few ads for example) to have them visiting advertisers that pay peanuts.
     
    YeinJee, Jul 17, 2007 IP