Can someone give me an idiots guide to smart pricing?

Pretty descriptive title but can someone give me a simple rundown of exactly what smart pricing is and how can i tell if i'm being smart priced?

 

Smart pricing is an algorithm applied by Google to adsense publishers whose clicks don't convert into sales for advertisers.

There is a reasonable chance that you're being smart priced if the ads on your site stay the same but the amount you are paid per click falls significantly.

 

Here are a couple of links for you:

Google's original announcement about it: https://adwords.google.com/select/news/sa_mar04.html

Some good info from JenSense: http://www.jensense.com/archives/2005/10/one_poorly_conv.html

My own take on defining smart pricing: http://www.admoolah.com/blog/index.php/2005/11/defining-smart-pricing/

 

http://forums.digitalpoint.com/showthread.php?t=110478
http://forums.digitalpoint.com/showthread.php?t=110025

 

Thanks for the decent replys guys.

And wissam, well i could be rude but what a pointless and rude post you made!

 

I personally didn't konw what smart pricing was and now I do. This probably explains why all my clicks are so low. At least I know now.

 

this is interesting. I was testing some of my content sites. What i did was actually slash some of the actual content on the pages and added adsense ads.

Each page now had a total of one link ad and 3 banner ads.

After some time i noticed the though i was getting roughly the same number of impressions as before the income had gone up considerably. not sure though it has to do with smart pricing

 

The impressions are "page impressions" so it's logical the number stays the same. Are you getting more CTR or CPC ?

 

sorry...more CPC