It makes sense that all clicks are not equal. Google apparently will reward clicks that convert for the advertiser. This seems to be a major component in Smart Pricing. My question is: how do they know? I need someone to define "convert". Conversion could be someone purchasing something, or maybe viewing a certain page, or signing up for a newsletter. Maybe it is simply that the user must view X number of pages on the advertiser's website. But unless EVERY single advertiser is using the conversion tracking script in AdWords, which I highly doubt, then exactly how does Google determine Good traffic from Bad traffic? Do you have to be signed up for Google Analytics? If so, does that mean they have the right to mine your log files? If Smart Pricing is determined by the "quality" of traffic that clicks, then I'm trying to figure out how they determine quality. It is all very much like "magic dust". These click quality calculations seem to be pulled out of thin air. I guess I should be used to it since that same magic dust has been sprinkled on all of us for years regarding the percentage of each click Google pays us.
yes, I'd also like to know how do they define "conversion" - What if the visitor went to the site and contacted the advertiser through the phone?
good point you state tomm, someone got an answer on this? I'v been asking myselff these questions to.
the answer is, it depends on the advertiser. And how many advertisers does google have? Millions? So now you have millions of answers. If they have millions.
If that is the case, then it does not sound like Smart Pricing is very "smart". I have sites many different industries and EVERY SINGLE ONE has been reduced by 80+% with the same traffic and CTR. Many other people have expressed similar drops across the board. There are only 3 possibilities: 1) Google is simply paying everyone less and keeping more for themselves. 2) All advertisers in EVERY industry reduced their bids at the exact same time. 3) Google is applying some calculation regarding the quality of traffic that is being sent to the advertiser. Some people call this Smart Pricing though I don't believe Google has come out publicly to say that these recent drops are due to their Smart Pricing formula. But assuming that a calculation of traffic quality IS being applied, I don't see how this calculation can be made legitimately. There is no debate that: a) not all advertisers are using Google's conversion tracking script and b) not all advertisers are in Google Analytics so their log files can not be analyzed. That being the case, to have no standard base factor of which to judge quality traffic across all advertisers is to also create a forumula that has a core variable based on assumptions rather than fact. With no way of collecting the data on all advertisers, I'm wondering how they can calculate quality. Am I the only one thinking this? Am I missing something? No one has a real answer as to how this forumla can be calculated with no data to base it on. Oh, I am fully aware of Google's response... "we aren't forcing you to use AdSense. If you want AdSense then you must play by our rules." My response: "Don't worry Google, I'm NOT using AdSense anymore and I think many others are leaving as well. You are no longer the only game in town."
YAHOO? . I'm considering of using it to for my brothers website. http://www.horse-online.be/ . That way i can compare it a bit with adsense. I start working on it in 2 weeks.
Do you have multiple accounts with adsense? Otherwise, when google makes changes Smart Pricing is applied across your account, not each site.
What is the age of your sites? What is the average update schedule? How long have the sites been getting good traffic? I've spoken with people who have been in Adsense much longer and are doing much better financially (and have seen their report pages in person) and I honestly believe that Smart Pricing is the best thing to happen to Adsense ever. I saw a very temporary drop in earnings, but I have also seen that holding on and working hard makes a huge difference. Adsense is no different than a real job -- if you work hard, and stick to it for a long time, and continue to work hard, you'll make money. I feel this is true in any money making system -- the stock market only makes money for those willing to work hard at it. Adsense is absolutely 100% a real job. If you think it is all about making quick money, Google will prove you wrong as they optimize their payment structures. One of my sites has taken off based on my hard work. One of my sites has fallen into the pits because I ignore it often. Don't be mad at Google for optimizing their payouts, the Ad Words advertisers are very happy with the changes and they're the ones paying you, not Google.
yup advertisers love smart pricing. publisher who have whack content, hate it. but your little speech about hard work is true.. if you leave a site to rot, obviously the ctr and epcm is gonna rot as well. The harder you work, the more you are gonna get paid...
so far nobody has explained how google can accurately determine what a conversion is, and what we can learn from it.
that's because no one knows except google. Our only answer to the answer is the conversion tracking code, but as we already know, not every advertiser puts that code on their page. so maybe we can deduct that, only advertisers with the conversion tracking code are affected by smart pricing. and any publisher who have ads clicked on that has advertisers with that code on their page. remember that they don't only calculate converisons, there are other formulas in there.