Tuesday, March 9, 2010

Adsense smart pricing

How much Adsense pays you in smart pricing

Adsense account holders have ever noticed of regular fluctuation about the earnings they made when someone click on the ads on the page. The results often vary from as high as few dollar or more to as low as $0.001 . This is very depressive to those who doesn't know the reason and smart pricing technique used behind this.
There is very much possibility that both you and your friend have a website or blog and a certain page is about a certain topic displaying same ads on both page and a click on same ad on your friends' page can earn him/ her $5 whereas you can earn as low as $0.001 which will definitely left you with nothing but depression.

So, its better to gather a deep sense about this before letting your moral down and developing a mis conception about Adsense. Even this knowledge will help you to have a better handling capability

What is Adsense smart pricing?

Adsense Smart pricing is a topic of great speculation among regular publishers who are trying to make smart money from Adsense. There are lots of factors taken into consideration in adsense smart pricing and its always remains a key development area within Google to implement some better strategies in much better way so as to save the interest of the advertisers and the publishers as well.

Actually smart pricing has been introduced by adsense to prevent money loss of advertisers occured due to fraud click that has been malpracticed by large group of publishers to earn money from Adsense.

There are many publishers who tries to sets up temporary smart but non authorative pages to make money in short period. The pages are often being designed such aso as to attract the high paying ads on their page. But the clicks on such pages are often made adopting various tricks with the sole intention of making money and these clicks have nothing to do with business with the advertisers resulting in incurring huge loss to the advertisers.

Hence to prevent such malpractice smart pricing plays an effective role in saving the money of the advertisers but it also has taken care of not letting down the interest of the publishers as well.

Though there is a bit complexity regarding the factors that are taken into consideration but you can easily understand some of the significant factors that are included therein and dramatically effects your earning each time someone clicks on the ads of your web page. Few of these are stated below.
  • The relevancy of your web page (This takes care about whether your web page is fully dedicated about a single niche or the website or blog is about general type and the ads that has been clicked is present on the page with a content that has its existence as a single page or two in your web page (website/ blog).
    Adsense quotes to its advertisers about introduction of smart pricing in its news April2004
    We take into account many factors such as what keywords or concepts triggered the ad, as well as the type of site on which the ad was served. For example, 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.
    The above quote clearly pinpointing about the content of your web page. As I have already written in my old post "Adsense is all about selecting a niche". The content focussing on a single niche always have better advantage from the point of view of both your expertise and adsense earning as well. A general website or blog always earns less for the same click on the niche based website. So, start with a niche today if you have not one till now.
  • The traffic on your website/ blog is also being considered as a significant factor while adsense pays you after calculation through smart pricing. I have also written about why "Webpage promotion is necessary". The website/blog having already huge traffic on their page earns more from the point of view of number of potential clicks on their site and the CPC (Cost per click). This decision by smart pricing also makes sense because every advertiser wants value for every penny they pays in advertising. It has been noted that most of the visitors over new website has low conversion rate for the advertisers because they mostly get to those advertise while searching for some related informations, so they have no mind makeup to get converted to business on click whereas the visitors landing on the well trafficed website or blogs are often found to land on that page either because they have been reffered by others while showing interest on such products whose informations are present on the website/blog. These visitor's clicks are more likely to get converted into business giving better ROI (return on investment) to the advertisers. So, clicks on those pages pays comparatively more than on a low traffic pages for the same ad click.
    Google quotes to its advertisers -
    We are constantly analysing data across our network against a variety of factors. If our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.
  • The age of your blog or website is another significant factor that is also taken into account before adsense pays you for every click. This is being taken into consideration as many publishers try to cheat adsense and advertisers by setting up a temporary web pages that are so well designed to attract the high paying ads on their page. The sole intention of making those pages is to make money by fraud click within short time period. This incurr great loss to the advertisers. This is also being one of the reason that Adsense has setup a rule for having the age of new websites or blogs should atleast be 6 months or more for new adsense account application. You will find in more details about this in my post " Know why Adsense is rejecting new account". The overall thing is that Adsense wants you to take time to make your website or blog popular enough to attract huge traffic so that it would provide value to the investment of advertisers and you too should have start smart earning from the day you have got your new account and put your ads on the pages.
  • Page rank is also one among such factors taken into consideration in smart pricing. The page rank is the way of authenticating a website/ blog by Google search engine itself. The page rank provided by google is between 1 to 20. The higher the page rank the higher the authentication provided by Google. So, is the case with adsense earning. The higher the page rank, the higher the cost per click earned. I would explain in details about what is google page rank? how it is achieved? how it affects adsense earning in my another post for those who don't have any idea about google's page rank. See the picture below to know how the page rank looks like.
  • Inbound link is one more factor that smart price counts. The more you have, the better it earns you.
  • Ofcourse the CTR or click through rate is worth mentioning here to have direct effect on your adsense earning.
So, the takehome advice for website owners and bloggers who are working hard for generating decent income from adsense is to
  1. concentrate on quality content.
  2. Its better to start with a niche rather than making it general.
  3. Applying better SEO technique.
  4. Promotion of webpage should be done consistently.

Hope this post would have help you to understand your adsense earning better and also the ways to increase your adsense earning. Please share this post with your friends if you liked it.
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