Google Adsense Smart Pricing – Help Please

Everton | Jan 28, 2007 | View Comments


I read a story on the Blog Herald that mentioned in passing Google Adsense ‘Smart Pricing’ which I’d never heard of before and has got me really confused.   According to Jensense, Adsense Smart Pricing is when Google:

Automatically adjusts the cost of a keyword-targeted content click. So if our data shows that a click from a content page is less likely to turn into actionable business results – such as online sales, registrations, phone calls, or newsletter signups – we reduce the price you pay for that click.

The implications of this according to both sites is that if you have a poor performing site on your Adsense account, then this can result in lower-priced ads being sold on your better performing sites.

I’m not sure what I should do now.  I have two other sites on my Adsense account, which both get significantly lower CTRs than this site.  Should I remove the Adsense banners so that this site gets higher cost ads serving, or given that this site accounts for about 85% of traffic, are the chances that the other sites are bringing down my ‘average’ small?  Or, does it not matter as long as I use different Adsense channels for each site?

There doesn’t seem to be a lot of information on the net, so I hope that someone can shed some light on this issue.


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About the Author: Everton is based in London and has worked in the internet and mobile space for over ten years now, and before that worked in corporate strategy and consulting. He has a degree in Economics from Cambridge University.He also writes for Windows 7 News, Windows 8 News and One Tip A Day.

  • Hi Everton, I checked my all time stats and with the sites that had a low ctr I deleted. Thats right deleted. Wasting space anyway on my server. Since then I have not noticed any difference in the cpc so I am now looking into the competitive ad filter. It is my guess that is the first place to start.
    TerryG aka Psychic
  • I guess the best option is to write to Google then.
  • #Ajay

    It'd be nicer if someone had the answer though!
  • Everton I have the same problem this month, same difference in ECPM for ghacks. I have not found a reason for this other than the possible reason that sometimes I get worse ad feeds from google.

    It also is affected by which ads are clicked on by the users which can make a difference as well. Don't think you can influence this though.
  • That is why you should give this a test for atleast a month so you can evaluate it throughout.
  • It's hard to tell though Ajay as my rates fluctuate so much. E.g for my best day this month (yesterday in fact) my eCPM was $8 better than my worst day.

    Admittedly, that day was awful for some reason, but the spread between my good and bad days is still $4-5. I really wish I understood what was driving the eCPM on my good days so I could be more consistent!
  • My suggestion is why not give it a shot. Knock off the ads from the other sites and see how well the ads out here perform. Then give us feedback about the same :)
  • Well Smart Pricing affects all sites under an Adsense account even though only one site might have activated it. This is a pretty stupid ruling by Google.

    Smart Pricing normally drops the price per click to some cents the most, if that is not the case here you should not be worried.
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