Guide To Google Adsense Smart Pricing

Everton | Jan 29, 2007 | View Comments


I was adding a comment to my post asking for advice on Google Adsense Smart Pricing that was getting so long I decided to turn it into a post.

I can’t believe that I hadn’t considered Google Adsense Smart Pricing before. This is where Google Adsense will serve lower priced adverts on sites that have poor CTRs, and higher priced adverts on sites that have high CTRs. This calculation is done across a whole Adsense account, not on a site by site basis.

I guess from Google’s perspective this makes sense as if an ad that has a high CPC is displayed on a site but doesn’t get clicked on, then because this will result in poor performing results for their advertising partners who they want to keep happy as well as their publishers, then they won’t serve those ads on that site again and instead will show ads from ‘less important’ advertisers with cheaper ads.

What does this mean for your blog? Well, by having ads displayed in poorly performing locations either on a poorly performing site or in a poorly performing ad slot, then this will only result in cheaper ads being displayed on average across all your sites.

Armed with this new knowledge, I’m going to remove some of my ads where I’m only displaying an ad because there’s a ‘blank space’, so that (hopefully) across my Google Adsense account my average CTR will increase, which should hopefully mean that I get more higher priced ads because Google sees my site as a good place to serve better ads.

I’m going to monitor the results for a few months to see if the average eCPM for my better performing ad units increases as a result. Hopefully, this will ofset the loss of earnings from removing the poorly performing units.

Let me know if you made/plan to make a similar change and if it improves your Adsense earnings.


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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.

  • This is very useful info.  Looks like I have to review my ad placements (again). :)  Thanks!
  • Not really on the topic of increasing CTR, but it is on the topic of tracking ads to see which ones are doing better than others. I have many websites with adsense on them and seems adsense only allows you so many channels!! I think I have maybe 5 channels left for tracking, is there a way to get more? I went through and made sure all of them were active and they are, I pretty much make a channel for each ad I place, I never use the same ad code anywhere, this way I can track every single ad I have on all my sites, makes it very easy to spot those 0.XX% CTR ads, or the 0.00% CTR ads and get rid of them. Any advice ?
  • You said -
    "Google Adsense will serve lower priced adverts on sites that have poor CTRs, and higher priced adverts on sites that have high CTRs. This calculation is done across a whole Adsense account, not on a site by site basis."
    This is a most revealing comment thank you very much - It explains why my initially good earnings slowly dropped down to nearly nothing per click......
  • So what your CTR is like, guys?
  • Hello Everton,

    I have two different web hosting accounts and found my cpc went down dramatically. What I did was I kept one adsense serves on one hosting account and with the other I use another ad server. This has been good for me as I can join different ad servers to see which one provides the better cpc. At the same time my one adsense hosted sites has increased in cpc so I concur with you that your idea is quite correct. For others they can do the same thing. High ctr pages keep adsense whereas low ctr pages use a differnet ad server.

    As you know my thoughts are that no one will make any money, especially bloggers and webmasters, when they too, refuse to look at the ads served on other sites. It is ad blindness that drives me crazy. It does not hurt to have a click here and there for something that interests you. I have even bought stuff through a few ad clicks and have been more than happy with my purchases. Something I would normally not do, but now i DO.
  • i earn better than you all/click.and i think thats good but a get lower clicks than you.
  • I have 6 websites 5 of witch are in gaming. Few months ago i had a CPC of 10 cents a click and made about 60$ a day .. one day ... boom ... 1 cent a click. I hope by removing some low CTR like you've said will increase my CTR and hope CPC too. Thanks!
  • Thank you for sharing this important information. It's surely helps to know
  • The cpm in my primary position has gone up a quid or two, but it's my secondary positions which seem to do better with the cpm going up a few quid.

    Although Google lets you add 3 units to each page my belief now is that rather than looking for ways to always squeeze 3 units onto each page in the hope that every now and then every unit will get a click, you should only add units that get a good CTR.

    Makes sense to be honest, and your site design will benefit (and you'll make more money!)
  • Hey Everton,

    I'm REALLY curious if you've seen any improvements since then...

    We review all our revenue metrics from all income sources every 2 weeks, and that's usually when we decide what new ad positions to try, etc.

    Have an awesome day!
    Dan
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