Sunday, June 5, 2011

Did you Know Google Adsense Smart Pricing?

What is Google Adsense Smart Pricing? 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.
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, you should remove some of your ads insread of only displaying an ad because there’s a ‘blank space’, so that (hopefully) across your Google Adsense account your average CTR will increase, which should hopefully mean that you can get more higher priced ads because Google sees your site as a good place to serve better ads.
You need to monitor the results for a few months to see if the average eCPM for your better performing ad units increases as a result. Hopefully, this will offset the loss of earnings from removing the poorly performing units.

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