Smart Pricing?

Discussion in 'AdSense' started by keithchan, Jul 19, 2006.

  1. #1
    Sorry for asking this stupid question which I think most of those here know the answer (seems only me who doesn't know ...) But I still want to know what exactly "smart pricing" is? I have heard from other DP members that this will increase their earnings but how? Can anyone help give me a precise description for "smart pricing"? I am getting confused.
     
    keithchan, Jul 19, 2006 IP
  2. Art

    Art Peon

    Messages:
    711
    Likes Received:
    17
    Best Answers:
    0
    Trophy Points:
    0
    #2
    If your site is converting poorly for the advertisers (a TOTALLY silly factor for ad pricing in my opinion, since you can just fake low conversions for cheap content clicks), they'll ultimately lower the amount you get per click arbitrarily.

    An example of which is when you have a site giving you dollar clicks for 1 week, then suddenly from there on in, you're receiving 0.3 and 0.5c clicks forever.

    The general consensus (with the most evidence to back it up) is that smart pricing occurs on an account wide basis, so one poorly performing site may smart price an entire account.

    My theory is that they've updated it to work on a keyword basis (which would be most logical, and helps every party get the best amount, including Google's bottom line).
     
    Art, Jul 19, 2006 IP
  3. jackburton2006

    jackburton2006 Peon

    Messages:
    5,296
    Likes Received:
    282
    Best Answers:
    0
    Trophy Points:
    0
    #3
    Art is right, except for the last part, which is just nutty. :p
     
    jackburton2006, Jul 19, 2006 IP
  4. Art

    Art Peon

    Messages:
    711
    Likes Received:
    17
    Best Answers:
    0
    Trophy Points:
    0
    #4
    I know! I'm not one to base things purely on conjecture, but everything I'm doing leads me to think so! :eek:
     
    Art, Jul 19, 2006 IP
  5. jackburton2006

    jackburton2006 Peon

    Messages:
    5,296
    Likes Received:
    282
    Best Answers:
    0
    Trophy Points:
    0
    #5
    Well, who knows, you might turn out to be right. Adsense will always look out for #1, so if their profits start to drop, I doubt they'll be against tweaking their own system to benefit them and not bother to tell us peons about it.
     
    jackburton2006, Jul 19, 2006 IP
  6. Art

    Art Peon

    Messages:
    711
    Likes Received:
    17
    Best Answers:
    0
    Trophy Points:
    0
    #6
    The worst part is we're playing a game where the ref won't tell us the rules, and at the end of the day their bottom line is the most important thing to them. Smart pricing an entire account (even if it has 1000+ other extremely profitable sites) seems self-defeating for Google to pursue, especially with their emphasis on relevancy and efficiency in all their other areas.
     
    Art, Jul 19, 2006 IP
  7. keithchan

    keithchan Peon

    Messages:
    322
    Likes Received:
    10
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Thanks Art. So to say it in other words. Does it means that smart pricing only lowers publisher's earning?
     
    keithchan, Jul 19, 2006 IP
  8. Art

    Art Peon

    Messages:
    711
    Likes Received:
    17
    Best Answers:
    0
    Trophy Points:
    0
    #8
    Absolutely! (although you could argue it would raise others' earnings as the Good ads won't fill their daily quota, so they may raise the payouts for non smart priced sites)
     
    Art, Jul 19, 2006 IP
  9. keithchan

    keithchan Peon

    Messages:
    322
    Likes Received:
    10
    Best Answers:
    0
    Trophy Points:
    0
    #9
    Thanks. Totally understand now.
     
    keithchan, Jul 19, 2006 IP
  10. adwordaffiliate

    adwordaffiliate Active Member

    Messages:
    760
    Likes Received:
    22
    Best Answers:
    0
    Trophy Points:
    58
    #10
    Smart pricing is just another way of keeping the Advertisers happy, after all it's their money that's paying all of us publishers ;)
     
    adwordaffiliate, Jul 19, 2006 IP
  11. DLGx

    DLGx Active Member

    Messages:
    605
    Likes Received:
    13
    Best Answers:
    0
    Trophy Points:
    58
    #11
    I think the thing with a whole account getting smartpriced because of one site/channel performing badly is just lazyness from Google...easy to punish the whole account :mad: It's really annoying.

    I also really dislike the whole conversions issue. What is a conversion really? Well it totally varies. I for one never click an ad and then buy a product directly, I might bookmark the site and return later to make my purchase. I am sure most people do the same, and that won't count as a conversion.
     
    DLGx, Jul 19, 2006 IP
  12. jackburton2006

    jackburton2006 Peon

    Messages:
    5,296
    Likes Received:
    282
    Best Answers:
    0
    Trophy Points:
    0
    #12
    Ah ha! So it's your fault we're all getting smartpriced! :D
     
    jackburton2006, Jul 19, 2006 IP
  13. dotcompals

    dotcompals Prominent Member

    Messages:
    2,905
    Likes Received:
    254
    Best Answers:
    0
    Trophy Points:
    320
    #13
    Is Smart Pricing is really there?
     
    dotcompals, Jul 19, 2006 IP
  14. jackburton2006

    jackburton2006 Peon

    Messages:
    5,296
    Likes Received:
    282
    Best Answers:
    0
    Trophy Points:
    0
    #14
    No, it's all just a hazy dream induced by bad curry.
     
    jackburton2006, Jul 19, 2006 IP