Thread: question: smart pricing on the content network

Reading up a bit about adwords and heard that google discounts clicks from adsense sites that don't convert well for the customer. How does Google figure out what converts well for the advertiser seeing as they don't have access to advertiser data.

Redfly, Martina and the other PPCers, any ideas

Originally Posted by georgiecasey

Reading up a bit about adwords and heard that google discounts clicks from adsense sites that don't convert well for the customer. How does Google figure out what converts well for the advertiser seeing as they don't have access to advertiser data.

Redfly, Martina and the other PPCers, any ideas

They do not use actual conversion data. They use context and some calculation to make an aducated guess.

Have a look here:

Google AdWords: Learning Center

" For example, let’s say you advertise digital cameras. Your ad appears on two different pages – one that reviews digital cameras and another that offers photography tips. Since users are more likely to click on your ad beside digital camera reviews (and thus convert into more sales), Google doesn’t discount these ads. However, Google determines that clicks from the page of photography tips convert into sales less frequently and therefore charges you less per click."

There is also a good thread on WMW you might be interested in:
What is Quality Content in Relation to Smart Pricing?

yeah, i was reading that example on the learning center. so they just guess. leaves em a bit open to some gaming, no?

I doubt they just guess. They must have some way to judge. I'd say it's based on some sort of phrase matching with terms like "Reviews" etc. Terms that prequalify the reader in the "Buy" state.

If the adwords advertiser is tracking sales properly Google would have access to some of the conversion data, so surely they can work it backwards? Or am I missing something?

Originally Posted by blacknight

If the adwords advertiser is tracking sales properly Google would have access to some of the conversion data, so surely they can work it backwards? Or am I missing something?

Not all advertisers use Google to track conversions. Also, adwords campaigns are not always run for sales/leads. Branding.

The idea of smartpricing makes sense and I think it is a good thing but there is still a long way to go. At the end of the day, the advertiser does not have to pay as much for a click from someone not actively searching for the product/service.

My own experience is in Adwords, with little experience in Adsense, so I can't base my comment on any trends I've perceived personally.

Common sense would indicate though, that in terms of maximising your adsense revenue, it would help to be quite specialised in the keywords you optimise for - generic pages bring you in more visitors but perhaps of a perceived lower quality.

The key to content network advertising is on conversions, not neccessarily on click throughs.

You can use the excellent placement report to determine where your ad is being shown, from there I tend to micro-manage the ad shown, possibly split the ad to a seperate group / site target depending on the above analysis.