Adsense Smart Pricing Explained

A few days ago I attempted to explain Adsense Ad Click Value Variations (or why sometimes clicks are worth a lot and other times they are not). A number of readers emailed or instant messaged to say that I'd announcing Smart Pricing to advertisers back in April 2004. We're introducing automatic price adjustments for certain clicks you get from the Google Network. Google's smart pricing model has always provided better placement for better performing ads, and reduced the cost of a click to the least amount possible to stay above your competitor's ad. And now, with no change in how you bid, Google may reduce the cost for a click if that better reflects the value it brings to advertisers like you. How smart pricing works We are constantly analyzing data across our network, and 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. 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. Google saves you time and hassle by estimating the value of clicks and adjusting prices on an ongoing basis. With improved smart pricing, you should automatically get greater value for clicks from ad impressions across our network, all with no change in how you bid. This statement indicates that site relevancy is definitely a factor which gives even more reason to develop ProBlogger.net, a blog about the many ways of adding an income stream to blogs.