The Effect Of Smart Pricing In Adsense

We constantly receive phone calls from clients, prospective clients and reporters asking the same question ? what percent of the keyword price does Google pay AdSense publishers. While the AdSense Standard Terms and Conditions explicitly forbid disclosing such information, the range we often give is 20% to 50% based on numerous conversations we have had with AdSense publishers.

While the precise percentage is not clear, what is evident is that the percentage that Google pays publishers has gone down significantly since April 2004. It was at this time that Google announced it would be lowering the price of ads (i.e., charging AdWords clients less) that appear on the sites of AdSense publishers. Susan Wojcicki, Director of Product Management for Google, stated that this change came from requests of advertisers who wanted different pricing on clicks from search and content ads.

Google stated that it considered search-based ads more targeted than content ads, and that they therefore generated more clicks and revenue for advertisers. However, Google did realize that some content ads perform as well as search-based ads. As a result, "Smart Pricing" was born.

Smart Pricing adjusts the value of clicks based on a number of factors such as time of day, type of content, and conversion tracking. The latter, conversion tracking, measures how often a click on an ad produces a desired action for the advertiser, such as a product sales, newsletter signup, etc. The example Google gave for Smart Pricing was that "a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras." While web forums are filled will AdSense publisher complaints about Smart Pricing, it is actually a fair system ? publishers get paid based on the quality of the traffic they provide to Google advertisers.

While the switch to Smart Pricing has decreased revenues for many AdSense publishers, there is still a massive opportunity to generate significant revenues via the AdSense program. The key is to identify valuable/expensive keywords, attract qualified customers to your site, and provide compelling text that gets visitors really interested in a product or service. This will ensure that the visitors click on the appropriate AdSense ads and buy that advertiser's product or service. A true win-win-win.

About The Author:
Tommy Maric is the manager of TopPayingKeywords.com. TopPayingKeywords.com is designed to help webmasters maximize their profits using Google's Adsense? program. Through extensive research, TopPayingKeywords.com develops up-to-date databases of the most popular keywords and their accompanying bid prices. For more information, please visit http://www.toppayingkeywords.com

Contact:
877-TOP-WORD
(877-867-9673)
[email protected]

In The News:

Why PPC Is a Must Have for Ecommerce Sites  JumpFly PPC Advertising News
5 Innovative PPC Tactics to Try Today  Search Engine Journal
Expert PPC Management Services | Oxford UK  Blue Snapper Internet Marketing
What Is Ethical PPC?  Search Engine Journal
5 PPC Trends to Get Ready for in 2020  Search Engine Journal
7 Ways SEO & PPC Can Help Each Other  Search Engine Journal

7 Explosive Strategies to Maximize Your Google AdWords Campaigns

If you ever used Google AdWords to advertise your product... Read More

Adsense, Boost Your Payout 400%, No Really

How?Dead easy.I implemented this tactic myself yesterday on one of... Read More

How Much Should You Pay for a Click

You have a web site ready for action. Your product... Read More

Two Imperative Keys For Profitable Pay Per Click Marketing

Pay per click marketing is one of the simplest and... Read More

6 Easy Ways to Increase Your Adsense Revenue

How much revenue do you generate from Google Adsense?Recently there... Read More

So You Want Big Profits From Your AdWords PPC Advertising Campaigns?

So You Want Big Profits From Your AdWords PPC Advertising?... Read More

Buying Your Way to the Top with Pay Per Click Advertising

Imagine if you could advertise ONLY to people who have... Read More

Google Adwords: Higher Traffic and Sales in 2 Hours or Less!

There are various ways to purchase highly targeted advertising at... Read More

PPC Advertising Explained

Advertising on the Internet has always been a bit of... Read More

Replacing AdSense Defaults with Paying Ads

Many online ad programs, including AdSense, will sometimes show default... Read More

Google AdWords - A Quick Overview for Beginners

First of all, you know as well that Google is... Read More

What is Pay-Per-Click?

Pay-per-click (PPC) advertising is when an advertiser pays for each... Read More

Keywords, How to Find Them, and Use Them Effectively

To be a successful affiliate marketer takes a ton of... Read More

Campaign Strategy for Paid Placement

Campaign strategy for Paid placement:A Paid Marketing campaigns provides immediate... Read More

Pay Per Click Advertising - How To Uncover Profit-Pulling Keywords And Make Your Sales Soar

Choosing to bid on the right keywords can be key... Read More

Can I Make Money Online with the Adsense Program?

Sure you can. If you will learn how many other... Read More

Pay Per Click Search Engine Marketing - Starting A Campaign

Pay per click advertising is an on-going and growing arsenal... Read More

Team Up With Your Competitors

Pay per click search engines are a great way to... Read More

Internet Advertising Options

Your online business will likely require more advertising than a... Read More

Disguise Your ClickBank Affiliate Links Using Status-bar Faking

Many surfers are savvy enough to identify ClickBank affiliate links,... Read More

The Sensible Way To Earn Money With Google AdSense!

Dear friends,Google AdSense has rapidly gained a status of an... Read More

Work Your Google AdSense to the Bone!

You got your website, you got your AdSense account, you... Read More

How to Tap into the Google AdWords PPC Goldmine?

Dear friends,Google, the most populated search engine on the Internet,... Read More

Ten Tips for Affiliate Marketers Using Google AdWords

One of the hottest ways to sell affiliate products is... Read More

Seven Tips To Getting The Nost From Your Google Ad Word Investment

With Google Ad Words . . .When a person searches... Read More