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SEO 1 Forums > Revenue Networks >

Google's Secret Smart Pricing Gotcha



Author Thread
Andrew
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Joined: 21 Feb 2005
Good Posts: 997
Location: apache/domlogs
Google's Secret Smart Pricing Gotcha  Reply with quote  

Apparently Yahoo's YPN has done more than just provide an alternative to AdSense, it has also prompted an AdSense rep to reveal some staggering news related to Smart Pricing and how much money a publisher makes.

While talking to a publisher who had left AdSense for YPN, an AdSense rep revealed some surprising information. If any of a publishers sites are performing poorly (according to the secret Smart Pricing formula) the revenue earnings for not just that website, but every website can be significantly impacted.

Google is usually fairly precise with thing like this, but this is a broad stroke that will only work in Google's favor with respect to money.

quote:

# Smart pricing affects an entire account. It is not on a per page or per site basis.

# One poorly converting site can result in smart pricing impacting an entire account, even sites completely unrelated to the poorly converting one.

# Smart pricing is evaluated each week. So removing ads from sites you suspect are converting poorly could result in seeing an adjustment to a higher smart pricing percent in as little as a week.

# Smart pricing is tracked with a 30 day cookie, so you could be rewarded for new conversions that saw the initial click from your site up to 29 days earlier.

# Image ads are also affected by smart pricing.

# With smart pricing, an advertiser could end up paying less than their minimum bid, which would theoretically include the minimum bid price available, meaning publishers earn less for even the minimum valued clicks.

# Conversions for smart pricing publisher accounts are tracked by those advertisers who have opted into AdWords Conversion Tracking




Get the full story at JenSense.com...

http://www.jensense.com/archives/2005/10/one_poorly_conv.html
Post Thu Oct 27, 2005 3:29 pm
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sayyes
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Joined: 18 Aug 2005
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Location: Newport, RI
 Reply with quote  

This is very interesting. I'm surprised that the Google rep used Smart Pricing as a way to entice people to come back! To me, it's a reason to flee immediately!

It sounds like smart pricing is GREAT for advertisers (a reason to join adwords) but horrible for publishers (a reason to join YPN!).


Dr. Renaud
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Post Thu Oct 27, 2005 5:33 pm
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quinda
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Joined: 27 Oct 2005
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 Reply with quote  

That is interesting.

After reading that link and the story about the advertiser who got called, I'm interested to know what Yahoo are like - some of the comments said that Yahoos ads are not very relevant and the conversion is poor.

Is the payout that much better, even after this smart pricing stuff from google?
Post Thu Oct 27, 2005 5:53 pm
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Andrew
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Joined: 21 Feb 2005
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Location: apache/domlogs
 Reply with quote  

Well, the smart pricing is intended to help keep costs down for advertisers, which means that publishers can make less if flagged.

I think the rep was trying to explain why revenues were not as good as they used to be, and that the publisher should kill any adverts that were not performing well.

Unfortunately, for publishers this is just a guessing game. I mean, I know that when Google shows virtually nothing but Ford Truck and Car Part ads on a website that is not about that it's time to kill it, but after that, who knows?

If Google would let me know, I would do my part. ;)

I've heard good things about YPN, we will see when it goes public for a while though, in any case, nice to have an alternative brewing...
Post Thu Oct 27, 2005 6:35 pm
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etali
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Joined: 22 Oct 2005
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 Reply with quote  

Another thing it mght stop is people who mask the ads to make them fit in with the content causing accidental clicks - I know thats technically not allowed but I see sites that do it a lot.

Won't they be counted as getting low quality clicks?


Myth Games
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Post Thu Oct 27, 2005 6:44 pm
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Andrew
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Joined: 21 Feb 2005
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Location: apache/domlogs
 Reply with quote  

From my understanding, the smart pricing is derived from data of advertisers that opt into the ROI tracking feature of AdWords. That makes some sense, otherwise how on earth would Google have any idea about it, but seems a little funny too. Who is to say the advertiser doesn't use some technical cheating to hide half of their conversions in order to get cheaper clicks, punishing good advertisers... Confused
Post Thu Oct 27, 2005 6:50 pm
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etali
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 Reply with quote  

I think google would probably have their own tracking system to avoid advertiser fraud, but I'm not sure how it would work.


Myth Games
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Post Thu Oct 27, 2005 8:15 pm
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Andrew
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Joined: 21 Feb 2005
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 Reply with quote  

That makes sense until you think about where the relevant data would come from. Only the advertiser really knows the ROI. Of course, poor CTR could be used as a clue, but that poor CTR site could actually be sending a sale everytime, meaning that poor CTR means nothing.
Post Thu Oct 27, 2005 9:18 pm
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xboxundone
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Joined: 04 Mar 2005
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 Reply with quote  

WOW that is VERY interesting!!! Even more reason that i can't wait to be approved for YPN!!!

but good for me to continue to use adwords :)


Post Mon Oct 31, 2005 7:24 pm
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wyrickj
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Joined: 17 Aug 2005
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 Reply with quote  

Yeah I am waiting for YPN as well. This smart pricing is I think bad for every publisher.
Post Tue Nov 01, 2005 9:50 am
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ibold
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Joined: 09 Dec 2005
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Location: Reading, PA, USA
 Reply with quote  

Even without knowledge of a sites ROI, Google could at least take a guess at the quality of a visitor based on time spent on site, how deep the got into the site, etc.
Then again, I suppose that a poorly designed site that someone got to via an adsense link could hurt the publisher at well. Far too complicated for me..


iPowerWeb Review | The Meaning of Dreams
Post Fri Dec 09, 2005 9:03 am
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cianuro
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Joined: 15 Dec 2005
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 Reply with quote  

Very interesting article. Makes you feel a bit "Hard done by". I certainly do.
Post Thu Dec 15, 2005 2:10 am
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iproperty123
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Joined: 29 Sep 2010
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Location: Malaysia
 Reply with quote  

Really, this is one of the good method to entice the peoples which is acquired by Google.
Post Tue Feb 15, 2011 2:46 pm
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bettyem
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Joined: 08 May 2009
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 Reply with quote  

Great. I have heared this many mouth but don't know much in details that how its works so thanks a lot for sharing it.

Now I have no doubts regarding this. I like this also very much.

Have a nice day.
Post Mon May 30, 2011 6:26 am
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rivaldowhd
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Joined: 10 Aug 2010
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 Reply with quote  

What's Google smart pricing? I am wondering what it is and how it may effect your Google AdSense earnings. Until now Google Smart Pricing has been a kind of well-kept secret as very few people have written, researched and inquired about it.


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Post Tue May 31, 2011 5:51 am
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