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AdSense Per Click Payout Based On Natural Rankings

Discussion in 'Reporting & Stats' started by digitalpoint, Nov 9, 2004.

  1. chachi

    chachi The other Jason

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    #61
    I agree with Shawn here, if I am a lower bidding advertiser, all I know is I am not getting alot of clicks. I can either up my bids and see what the results are, or drop out. It has little to no effect on the higher bidders. The only way it would affect them is if I tried to be #1...then they may actually up their bids to stay at the top.
     
    chachi, Dec 1, 2004 IP
  2. gchaney

    gchaney Peon

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    #62
    I would have to disagree with this theory in part. I believe payout is based on the click through rate per thousand which corresponds with the advertising rate being paid.

    IMHO

    High ranking sites have higher visitor results (your CTM) which increases the value of your impressions. This is why you see higher "Costs" for advertisers displaying on your site. Lower traffic sites (as measured by impressions) receive lower costs to advertise. So, I actually agree with this aspect, but only in part. I do not believe you must rank high in Google. I believe you must have consistent Impressions coupled with a consistent CTR. Regardless if the traffic comes from Y, M or external links. G counts impressions not rank. Relevance of adsense displayed is prefactored using G's own system.

    However, for any site, if CTR is low, then you are paid a lower percentage of "available" advertising costs for not converting traffic (CTM) which explains why sometime I get high $ impressions but mostly middies. (damn sure wish it would happen more often) I have "Low Impressions" but good CTR.

    So, CTR corresponds to the value of your CTM. Note, if you factor your earnings by the value of your CTM you will always get your total impressions. This is how G factors your value.

    If the CTM for your daily activity is $28.45 per thousand impressions, this says google believes the value of the advertising displayed on your site to you for the day is worth .02845 cents per impression. If you divide your payout for the day by your impressions this number will always match your per impression cost. I believe this corresponds with the value vs impression vs CTR.

    So, the higher percentage your CTR is, the more valuable your impressions are and a higher percentage of the revenue you will earn. Higher ranking only mean higher impressions. Since impressions do not pay anyone CTR does and you are only paid a percentage based on CTR vs CTM vs $ available from advertising partners. The more impressions the more valuable your space the higher $ your advertisers will be, but CTR will always determine what percentage/share of the advertising $'s you get paid and the value of your CTM.

    I don't know if any of this made sense...but hey, its 3am and my brain if so fried...lol
     
    gchaney, Dec 2, 2004 IP
  3. Surf_Dude

    Surf_Dude Peon

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    #63
    I can't find the term CTM used anywhere, not just Google.
    The search - epc cpm epm ctr ctm - yields jibberish.
    The search - epc cpm epm ctr - good results.
    The search - google ctm - yields jibberish.

    Would you please define CTM? What does the acronym stand for?
    What is it, exactly? A dollar cost of what?

    What is a "visitor result"?
    Thank you.
     
    Surf_Dude, Dec 2, 2004 IP
  4. gchaney

    gchaney Peon

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    #64
    lol, hey, I told you I was tired....lol CPM ;)
     
    gchaney, Dec 2, 2004 IP
  5. Surf_Dude

    Surf_Dude Peon

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    #65
    Hey, this stuff fries my brain too.
    And I still keep pounding my head against the wall.
    I must be getting something out of it.
    Ha-ha-ha!
     
    Surf_Dude, Dec 2, 2004 IP
  6. ResearchTechs

    ResearchTechs Peon

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    #66
    I was doing pretty well when my site very first put AdSense on it, but it seems to have diminished slightly over the last couple weeks. Maybe it's because the same people are coming back now to see the website and their ad clicks are worth less because they are the same ip instead? That at the same time as not moving up the ranks on Google yet at all because I haven't been really spidered yet.
     
    ResearchTechs, Dec 4, 2004 IP
  7. Mia

    Mia R.I.P. STEVE JOBS

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    #67
    I'm not sure that that would be the case. Perhaps the sites overall traffic is down? I see ups/downs, but a few of our sites are dead on consistent for the most part.. Do you keep any logs? If so, I would take a look at what your overall traffic to that site/s looks like over that same period.
     
    Mia, Dec 4, 2004 IP
  8. pg20706

    pg20706 Peon

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    #68
    I agree CTR+impressions are more important factors than ranking because CTR*Impressions = numbers of visitors to the advertisers.
     
    pg20706, Jan 17, 2005 IP
  9. my3cents

    my3cents Peon

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    #69
    My guess would be that the decline in earnings could be related to your abundance of repeat visitors, but not for the reason above (same IP) but more because the users are getting use to the content/ads. The more the same person sees the same ads, the less they obviously click it. And at some point, repeat visitors may become numb to your ads. That is why it is always good to re-evaluate your site from time to time, rotate sizes and colors possibly. Keep things fresh!

    Good luck!
     
    my3cents, Jan 17, 2005 IP
  10. Sharpseo

    Sharpseo Peon

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    #70
    I have a site that's only one month old. Only the home page is indexed by google, not listed in G serps. I am #1 in MSN, but that shouldn't matter I guess. I'm avging about $.40 per valid click, niche keyword.
     
    Sharpseo, Jan 26, 2005 IP
  11. Infiniterb

    Infiniterb Well-Known Member

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    #71
    Still ranking ninth, but for a different keyword, and am starting to notice what Shawn made reference to. HUGE difference in the payouts right now, and I'm enjoying it :)
     
    Infiniterb, Feb 15, 2005 IP
  12. BigEasy

    BigEasy Peon

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    #72
    Um... I want to say this as kindly as possible, but your argument here is flawed. Yeah, you will earn more "per impression" if your CTR is higher, but that doesn't have anything to do with CPC. Let's look at an example:

    Site A has 1000 impressions on Monday, with 3% CTR. The CPC is $0.10, which yields a CPM and a payout on the day of $3.00.

    Site A has 1000 impressions again on Tuesday, but this time with a CTR of 7%. The CPC is $0.10 again, which yields a CPM and a payout on the day of $7.00.

    So yeah... the higher CTR on Tuesday results in a higher amount per impression, but so what? We want to know what changes the other variable in the equation... the CPC.

    If you are suggesting that the higher CTR will also result in higher CPC I would argue that it doesn't, based on my stats.


    Anyway, Shawn's theory is as good as I can think of as to the fluctuations in CPC. I think it makes sense that Google display lower paying advertiser ads on sites that rank lower for a couple of reasons.

    G has been working extremely hard to combat site/serp spammers and this would be a good way to combat them, as well as to combat click fraud. Think about it... there are a million sites out there these days that list the so-called "highest paying adsense keywords", which almost certainly has a bunch of new would-be webmasters wanting to cash in on the program.

    So doesn't it make sense as a natural quality control for G to relate adsense ads with a site's serps? I think it makes perfect sense.

    Maybe what we are seeing is an implementation/testing of an adsense sandbox? I wouldn't be surprised.
     
    BigEasy, May 21, 2005 IP
  13. yo-yo

    yo-yo Well-Known Member

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    #73
    I'm not going to take a side, as I have no proof, but in general I'm going to have to disagree.

    I currently have about 10 sites using adsense and not 1 of them ranks anywhere in Google for their biggest keywords. However they almost all rank highly on MSN and Yahoo for the biggest targeted kw.

    I've checked the bids for the kw's on overture, and for example, a kw that is consistantly bid by 5+ advertisers at $5.00/click, pays me an average of $1.50/click.

    The end of last month all my averages shot down by over 50% across all my sites that averaged over .50/click. Just 2 weeks ago they all show back up to normal. The fall/rise were not consistant with any ranks rising/falling in any search engines.

    I'd have to think it would not be in google's best interest to lower the value a click pays based on if the site ranked in their search engine or Yahoo, or wherever else. They would lose a ton of money that way.
     
    yo-yo, May 21, 2005 IP
  14. lingeriediva

    lingeriediva Peon

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    #74
    A slight variation on the theory - I am now ranking well on my keywords but I notice that my click value decends over the 24 hour Google day. It is a small fluctuation but at, say, 1:40 AM my clicks are worth x+3 at 11:20 the clicks are worth x-3. You can see this with the handy adsense checker plugin for Firefox.

    So here is my theory: the advertisers who are willing to pay more for a particular keyword also limit the number of clicks they are willing to pay for. They have a budget and a sweetspot which means that by, say noon, Advertiser A,B,C all of whom are paying x+3, have spent their budget leaving Advertisers X,Y,Z who pay low but have a larger daily budget.

    This, of course, also suggests a URL blocking strategy: kill the URLs you see at the end of the Google day.

    I could, of course, just be crazy - but I thought I would share.
     
    lingeriediva, May 22, 2005 IP
  15. MattL

    MattL Well-Known Member

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    #75
    Actually an Adwords advertiser can control what sites their ads are displayed on. It's called Campaign Negative Sites.

    https://adwords.google.com/support/bin/answer.py?answer=13248&hl=en_US

    Of course you need to know the site exists before you can enter it. A bit of a problem.
     
    MattL, May 22, 2005 IP
  16. MattL

    MattL Well-Known Member

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    #76

    I believe you are correct about the budget theory, to an extent. Google has always mantained that they spread the ads out throughout the day, but they can only guesstimate, so many budgets run out early.

    I also see a similar pattern on a weekly and monthly basis. This might be from people actively managing their Adwords budgets.
     
    MattL, May 22, 2005 IP
  17. anthonycea

    anthonycea Banned

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    #77
    Payouts to publishers are nil and dropping on most keywords, I have one site that still has decent PPC payouts but even that one is dropping.

    I think the game will never be what it once was, you will need millions of hits in the future to generate a lot of cash when you only get .03 -.07 cents per click on most clicks.

    There are way too many sites now with ADSENSE on them and Google warned us about payouts dropping in their last quarterly report.

    It is really happening too.
     
    anthonycea, May 22, 2005 IP
  18. Shoemoney

    Shoemoney $

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    #78
    Shawn do you think possibly people are bidding on your domain as a keyword?

    I noticed that my domain is showing up as a sugested bidable keyword on adwords for one of my bigger sites and this site seems to increase in ppc consistantly.

    For instance maybe digitalpoint is sugested for seo?

    I think this is a important reason to brand yourself (via domain) and not squat on bland term domains.


     
    Shoemoney, May 22, 2005 IP
  19. chikku

    chikku Well-Known Member

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    #79
    i don't understand
     
    chikku, Sep 25, 2005 IP
  20. chikku

    chikku Well-Known Member

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    #80
    adsense is cheating people.they are always looking forward to suspend accounts and eat the amount generated by publishers.

    I lost $1350;)
     
    chikku, Sep 25, 2005 IP