Maybe we are the publisher have no much care about how price from ads was build and became very fluctuations day to day. But a little knowledge about this could useful to choose a niche to our site. Google Smart Pricing is a system designed to help AdWords advertisers to improve their return on investment (ROI). Google smart pricing system is basically a system that will adjust contextual click costs for Adwords advertisers automatically based on a set of values. Google does not disclose much about the values it uses for its smart pricing system. The mechanism of smart pricing system remains largely undisclosed.
But Google has been revealed some factors that affect the price of it ads. These factors are as follows :
But Google has been revealed some factors that affect the price of it ads. These factors are as follows :
- The advertiser bid
- The quality of ads
- Another ads that compete for the space in web.
- The start or end of an ad campaign
- Another advertisers fluctuations
Google also considering these factors to calculate the price of an ad :
- The concepts or keywords that affect an ad
- The type of site/blog on which ad was placed
- Conversion rate of advertiser AdWords advertising campaign
Google understand that clicked ads from its content network have different values. Its consistently analyze where the click come from. More relevan from the site which the ad was served and clicked to the AdSense ad, the more value added to ad type that clicked.
Google provided a tool that can track a conversion of a contextual click. Every time an AdSense ad is clicked, Google will place a conversion tracking cookie on a user's computer. The conversion tracking cookie will be stored in the user’s computer about 30 days. The purpose is to track a conversion for Advertisers.
Google Smart pricing system will use the incoming information in period to make price adjustment for an ad. When the click generated from its contextual network is less likely to turn into business for advertisers, the smart pricing system will reduce the price advertiser pays for that click.
That is a bit information about Google Smart Pricing, the system provided by google adsense to balance performance between publisher and advertiser. So, we or they, publisher-advertiser can feel comfort to do their own business.
Google provided a tool that can track a conversion of a contextual click. Every time an AdSense ad is clicked, Google will place a conversion tracking cookie on a user's computer. The conversion tracking cookie will be stored in the user’s computer about 30 days. The purpose is to track a conversion for Advertisers.
Google Smart pricing system will use the incoming information in period to make price adjustment for an ad. When the click generated from its contextual network is less likely to turn into business for advertisers, the smart pricing system will reduce the price advertiser pays for that click.
That is a bit information about Google Smart Pricing, the system provided by google adsense to balance performance between publisher and advertiser. So, we or they, publisher-advertiser can feel comfort to do their own business.
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