Adsense smart pricing and Low paying ads

High paying AdSense ads on every webpage of a site is the prime target of every bloggers or website owners. Even people are mostly found to pay high prices for getting a list of high paying AdSense ads. But results are often found frustrating when the earnings are shown in your account. The reason is Smart pricing of Ads.

What is AdSense smart pricing?

AdSense smart pricing is a smart effort from Google AdWord to value the advertiser’s money which automatically reduces the maximum cost per click (CPC) for a certain page. Though the mechanism behind this calculation being complex but the logic is very simple. There are certain factors being considered while analyzing the data for a page on Google Network. If it appears that a high paying ads being served on a certain page is less like to turn into actionable business or conversion into phone call, sign-up, registration etc., the bid price of the ad on that page will get automatically reduced so as to value advertiser’s money with AdSense Smart Pricing.

Smart pricing factors

Smart pricing may depend upon few of the below mentioned factors

- Blog/ Site relevance (Whether the whole site concentrates on single niche or have a single page post on the topic). The single niche topic sites often perform better in this case.

- Site popularity or high traffic increases the conversion ratio, hence they earn high from ads.

- Page rank is an authority indicator, the more the page rank, the higher would be the rate of ads.

- Inbound link relevancy where lots of other sites links to your site through keyword relevant to content of your site would high paying ads.

- CTR or higher click through ratio obvious pays you better revenue from ads being displayed on your site as advertisers are getting more benefitted from click ratio on your site.

- Age of your blog or site also plays role in determining the rates of ads as some people are always in search of making quick money by creating pages for a short span, which affects the authority of the site to their readers and consequently the ads being served through those pages. So, once Google determines that your site is for long term then the price of the ads on your site gradually start increasing.

Facts about Smart Pricing works?

There are many factors taken into consideration to introduce Smart Pricing for certain web page. But there prevails many mis-concept among publishers regarding smart pricing. Here are some of the fact explained that may help you doing better to increase your AdSense revenue.

- Several factors for deciding price of an ad – Keeping apart the conversion possibility of an advertisement for determining the price of an ad, the advertiser’s bid, competition for the space,quality of the ad, start and end date of the ad campaign and many other factors are also responsible for deciding the price of an AdSense advertisement.

- Click through rate – It is a bad idea to remove the ad code from your particular web page as it has lower CTR, because the click through rate does not affect the advertiser’s return on investment (ROI). Some time it is seen to have ads with higher CTR has low conversion ratio and vice versa. So, don’t remove ad code from those pages bothering about CTR factors, may be it turn into the best revenue earning page of your site.

- Google doesn’t earn from smart pricing – There is a general misconception among the publishers that Google charges the advertisers the right amount of money and keeps most of it with themselves while smart pricing a website. In-fact Google itself makes less money as due to smart pricing, the cost of the advertising gets reduces to provide the advertisers a better ROI, but there are still higher payouts for the publishers with high quality sites.

- Content is still the king of the whole game – To get ensure that your blog or site would not get smart prices, the best strategy is to create compelling contents that would interest the readers. This unique quality content not only rank higher but also attract visitors. Advertisers are found to get better ROI from the visitors coming from most relevant ads from the contents they are interested about. Hence the sites with quality content are not being in the state of smart priced.

So, the above all indications by Google shows that both Google and publishers and advertisers are getting benefitted when the sites are created with quality content that drives quality traffic and hence better conversion ratio. So, the advertisers are also willing to pay more for the high quality sites. Hence creating high quality information rich site is the best way to get insure that your site will not suffer smart pricing.