Adsense Smart Pricing is Bad but How to Avoid It?


The first thing you should know before blogging for money is the Adsense smart-pricing. It's a technique to improve value to advertisers by reducing the price they pay per adclick, ultimately reducing the pay publishers get per adclick. If you are in the categories whose blogs are smart-priced, then you'll be earning much less than what you were supposed to if you're not smart-priced. This article explains what smart-pricing is, what factors affect blogs to be smart-priced, and how to avoid being smart-priced. This guide is a summary based on Google facts and best tips on smart-pricing from top blogs.

Image credit: josef.stuefer.

What is Smart Pricing from Google standpoint?
Smart pricing was intoduced in April 2004 to improve advertisers Return On Investment (ROI) by adjusting the price of certain clicks. Here are some facts and implications on smart pricing based on the Goggle AdWords announcement:
  • Prices per click for advertisers are adjusted based on Google network's data of click conversion to advertisers' business actions (e.g. sales, registration, etc).
  • Cost-per-click (CPC) is reduced if that action improves value to advertisers.
  • Ad price estimation is affected by many factors such as keywords and types of blogs. For example, an adclick on videocam placed on a general photography tips blog may cost less than a click on the same ad placed next to specs and reviews on videocam.
  • The estimation of click values is done continuously and on an ongoing basis that ultimately saves advertisers time and money.
  • Advertisers get greater value and performance as the ad costs are appropriately set based on the quality and relevancy of information provided by sites/blogs to their customers.
Google explained further in its official Adsense blog about the facts on smart pricing as there are some misconceptions to how it's being implemented:
  • Ad prices are determined based on many factors: advertisers bid, quality of ad, other competing ads, ad campaign time period, and advertisers' conversion rate.
  • Click-through-rate (CTR) doesn't affect advertisers' ROI. Smart pricing is introduced to benefit advertisers, and the only thing that matters is the percentage of click conversion to ROI. Publishers' CTR has nothing to do with advertisers' ROI. What matters is clicks that bring in highly relevant customers that result in business actions.
  • Advertisers gain more from sites that bring in quality clicks (due to readers interest in their quality and relevant content). Generic clicks do not convert much to value for the advertisers. To gain most from Adsense, publishers should improve content quality, bring in targeted traffic, and improves the relevancy of content to ads.
  • The system of determining ad prices is updated regularly to improve the value to advertisers.
How Smart Pricing Affects Bloggers/Publishers?
Many bloggers have had some experiences on Adsense smart-pricing that affect the type of niche they choose and how they blog. Some of these experiences weren't highlighted by Google's guides. In essence, bloggers need to be aware of smart pricing and careful when first finding a niche to blog about if they want to gain the most from Adsense. I have compiled the most important 'facts' about Adsense smart-pricing based on these experiences around the blogosphere:
  • Reduced earning - Smart price means that the earning per click is reduced if your blog is being smart-priced. For example, you might earn $0.05 per click on an ad that could actually bring you $0.50 if you're not smart-priced. It also means that the advertisers pay less per click on ads these ads than the actual bidding price.
  • Affects entire account - Smart-pricing affects the entire Adsense account. If you have multiple blogs and only one of them is actually being smart-priced because it brings in low conversion rate to advertisers, then all the other blogs under the same Adsense account will be affected also eventhough these other ones converts well.
  • Won't know if you're being smart priced - You won't know which sites are being smart-priced and which are not, and you don't have any data to make any correct guess. What you can do to know whether your blog is being smart priced is by observing its performance or make educated guesses based on your earning per click or CTR.
  • Smart-pricing can be reversed - If your account is affected, remove Adsense ads from sites that you think are actually being smart-priced to avoid being smart-priced on sites that convert well.
  • Updated on weekly basis - Smart pricing is evaluated on a weekly basis. Changes are likely to occur the week after you've made any changes that affect smart-pricing.
  • Setup additional account - Some bloggers have set up additional Adsense account to serve different sites so that well-converting sites are not affected by smart pricing. But this requires approval from Google and actually difficult to get. Publishers need to provide additional company details or have different names for different accounts.
Does CTR Affect Smart Pricing?
Some bloggers say that blogs with low CTR will be smart-priced. This is contradictory to Google's statement. But many have experienced that the earnings per click is less when they have lower CTR, which then forced them to delete Adsense from these accounts so that it won't affects other blogs that do well on CTR. Courtney gave a tip that blogs with CTR less than 3% should not put Adsense to avoid getting smart-priced on the entire accounts.

Although Google says that CTR doesn't affect smart pricing, it can affect smart pricing indirectly. Blogs that have low CTR most likely are serving ads poorly targeted to the content. Some readers that do click on these ads tend to not be interested by the services/products offered on the advertiser sites as they're not targeted to the readers interest. So, in a way, low CTR blogs do seem to be smart-priced because of their poorly targeted ads. Accidental clicks on poorly targeted ads also convert to low CTR.

Traffic from social networks are well known to convert to low CTR compared to traffic from search engines. Visitors from social networks come across blogs/posts because of their reputation or popularity, not entirely because they are searching for them. They are not likely to click on ads. On the other hand, visitors from search engines come across blogs/posts because they are searching for those targeted contents and are likely to click on targeted ads to know more about those products/services that interest them.

Blogs about blogging (e.g. making money using blogs, blog tips) typically also convert to low CTR as bloggers are more familiar with the concept of contextual advertising and aren't likely to click on ads (hint: think about your tendency of clicking ads on blogs about blogging). This is not to say that these blogs will automatically be smart-priced, but many bloggers blogging on these topics do experience a huge drop on CTR and earnings per click compared to blogs on other niche topics. The key is about bringing quality customers that convert to advertisers business. If your blogs do provide high quality content and do bring in quality customers that improve advertisers' ROI, then there's no good reason for your blog to be smart-priced.

Tips To Avoid Being Smart-Priced
These are tips that have been compiled from many top blogs on the topics of smart pricing:
  • Create highly targeted content to search engine traffic.
  • Improves blog with highly targeted content and high quality articles that draw more interest to visitors on products/services being discussed or reviewed.
  • Improves Adsense design and placement to improves CTR.
  • Avoid blogging about blogs to avoid audience that don't tend to click ads (i.e. don't target us!).
  • Avoid building contents with the intention of targeting only social networks.
  • Delete Adsense on blogs that are being smart-priced, have low CTR (less than 3%), or generate low earnings per click (around $0.10 or less).
  • If possible (but extremely difficult), ask permission to create multiple Adsense accounts - one for blogs that convert well, and another for blogs that you suspect are being smart-priced.
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This post is a summary based on Google announcement and tips on smart pricing from top blogs. The post length is 1342 words.

Best Tips to Generate Money from Adsense

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Sharon Housley gave out top Adsense tips to help webmasters or bloggers profit from Google Adsense to generate money online using websites. The main ideas of these tips are summarized here.
  • Sites rank better on search engines if they have specific niche and clear theme and therefore will get the best revenue out of Adsense if the topics targeted have sufficient number of ads available.
  • Target decent or moderate paying keywords as your specific niche. Sites targeting highest paying keywords will find it difficult to rank well because of the high competition from established sites.
  • Older websites generate better ads revenue simply because it will rank better in search engines and the ads will become more relevant (relevant ads have better click-throughs).
  • Use Tracking Channels in Google Adsense program to study the ads that make the most money, best performing sites (if you have more than one), and ads placement. Make sure to let those ads run for a week and compare results on a weekly basis to see what ads work best.
  • Blend ads with site content (e.g. create ads without borders close to content). It's best that ads links should be different from the content colors to increase click-throughs. Randomizing ads link colors frequently is also a good practice so that frequent readers don't filter the ads.
  • To serve the most expensive ads on your site, compromise with the number of ads displayed. This is because the value per ads decreases as you increase the number of ads displayed (up to a max of three ads units).
  • Ads placed on hot spots and without scrolling will generate higher click-throughs (according to Google). Based on this hot spots map, the best place is near the beginning of the content. Experiment with the type of ads (text or image) to see which works best.
  • According to Google, the best ads sizes with highest click-throughs are the 336 x 280, the 300 x 250, and the 160 x 600, but these may be different for different web layout. Again experiment with these yourself to see which works best.

My Comments
These tips look very compact and may not seem to contain much detailed explanation, but these tips cover everything possible in general for you to know to get the best out of Adsense. It’s easier for you to study all of these in more detail later on than not having a compact and complete list like this to give you an overview. I’m sure some of the tips above are easy enough for you to experiment with right away on your blogs without having to study them in more detail.

Photo by ul Marga.

Note: A more detailed guide on Adsense optimization has been posted based on an article by Darren Rowse at Problogger.net.

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This post is a summary of an original post by Sharon Housley, a guest author at About.com (Alexa rank: 138). The original length of 876 words has been cut down to 355 (60% less).

Optimizing Adsense for Higher Money Returns

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Having Adsense setup in your blog doesn't guarantee great success generating money with it. It needs to be optimized and tweaked accordingly to ensure that you get the best outcomes from it. There are many factors determining Adsense success, or its failure. In this post, you'll learn what all these factors are and what to focus on when optimizing Adsense. All the materials are presented in a very compact form to help you learn the most important points fast, quickly, and easily found if you want to come have a look at it again.

Before reading through them, it's best if you have already understood what Adsense is and what its policies are. Also, be sure that your blog is acceptable by Adsense.

Photo by alexdecarvalho.

Factors for Success
There are 4 major factors to make Adsense more successful to bring money in:
  • Traffic Levels - As the number of visitors increases, so does the total number of clicks.
  • High Paying Ads - Ads that cost the advertisers $3 per click will add more to your revenue than ads that cost $0.01 per click. Finding the right keywords to be the niche of your blog that targets these high (or at least moderate) paying ads are very crucial before you start a blog. Targeting niche keywords that pay very little is not worth your effort.
  • Relevant Ads - Ads that are more closely related to your blog are more likely to interest your visitors to click upon. 'Public Service Announcement' or ads that are not related to your content are less likely to be clicked upon because generally, they don't spark any interest in your visitors.
  • Optimal Ads Position and Design - Ads position, colors, sizes, number of units, and borders do affect visitors' behavior in looking or clicking at them. Finding the optimal design and position is crucial to maximize your Adsense income.
Each one of these factors are as important as the other. Do not only focus on one or two of them and leaving the other parts weak. Your Adsense success is as good as the weakest part. This is a fact adviced by many probloggers. For example, having high paying ads served on your blog but with only a small number of visitors won't result in good amount of conversion. More details on these factors are explained below.

How to Increase Traffic
These are some practical tips to increase traffic levels that have worked well for many experienced bloggers.
  • Build useful, quality, interesting and original content - Reflect on the blogs that you read often and think again why you read them.
  • Good blog design - Do you tend to think that a blog has quality content if the design is terrible?
  • Link to others - You'll only have others linking to you if you have shown your generosity in linking to others first. Linking helps in two ways: (1) Bring more visitors. (2) Increase your ranking.
  • Comment on other blogs - Interact with others genuinely (not spamming) by giving thoughtful comments in other blogs. People will grow their interest in your blog as you interact more with them.
  • Update frequently - a significant part of large traffic comes from frequent readers, who wants to see fresh contents all the time.
  • Interact with readers - Interact with your readers actively. Answer comments, questions, create memes, games, etc.
  • Optimize for search engines - Visitors that tend to click on the ads the most come from search engines. Doing SEO will increase your revenues and your rank as well.
  • Add your blog add in your email signature - This can help increase visitor numbers to your blog too.
  • Create RSS feed - Let your readers have the option to subscribe easily to your blog's content. Visit Feedburner.com for more details. This method eases their connectivity to your blog.
  • List your URL in directories - This increases the chance for people of relevant interest finding your blog easier through many mediums and portals.
  • Submit to search engines - Send your blog URL to search engines too and similar sites such as Technorati. Use the right and relevant keywords to describe your blog as this is the most crucial information that connects your blog to your visitors.
  • Create a newsletter - This is another option to update your readers of new postings.
  • Get involve in other blog projects - Make yourself visible in the blogosphere by actively participating in other projects or memes. The more visibility you have the better.
  • Participate in forums - This are the places to find other with similar interest. You can draw visitors to your blog by making yourself visible through helping others in the forums.
  • Promote your posts - Send your great posts to others or submit them in social media if you think they have a chance to get votted up. Be selective of which posts to promote to avoid being too annoying.
  • Add an 'Email a Friend' button - Add this button below each of your posts to let your readers have the option to email their friends.
High Paying Ads
It's pretty obvious that you should target high paying keywords to get a higher money return from Adsense. There are some sites on the internet listing out a limited number of keywords that are high paying ones. The downside of targeting these keywords are that they are highly competitive too: others are doing it as well. It's now becoming more difficult to rank well in search engines on these keywords. But that this does not mean that you shouldn't do it if you're confident to write excellent and quality content on those keywords.

A more common high paying keywords are the ones related to technology products as those are expensive products and businesses are willing to pay more to get advertised. Examples of successful blogs running these types of contents are Engadget, Gizmodo, and PVRblog just to name a few.

Targeting these high paying keywords alone doesn't guarantee success. The rules of getting high traffic still applies - and you have to be able to build high quality content for that. If you're more comfortable writing on moderately paying content and get more traffic on these niches, then this is a better strategy to do.

There are some strategies and tools to use to find and research more on these high paying keywords:
  • Do these keywords serve ads? - The first thing you want to check is whether the keywords you want to target serve ads. Simply type those keywords in Google and see if ads are served. If not, then your content related to those keywords are unlikely to serve ads too. By searching this way, you can also see other sites and blogs focusing on those keywords.
  • Buy them - There are many professional tools available at a cost that gives you hundreds of thousands of these keywords.
  • Use WordTracker - They have the best tool available related to finding and researching on keywords. They also tell you the number of other competing sites/blogs on any specific keywords.
  • Use Adwords - If you are ready to invest some cash, try becoming the advertisers yourself and see how much people are bidding for any keywords and get a better feel how to optimize the keywords you use.
Remember again that you have to focus on building high traffic levels too. If you're not able to do this using the extremely high paying keywords, then they're not worth it. Try the more moderate paying ones, as long as you can build quality content on it. But at the other extreme, targeting those low paying ads is not worthwhile.

Relevant Ads
Imagine a blog that wants to target 'making money online' as keywords but have the word 'blog' or 'blogging' too many times throughout the content, even the title and URL. The keyword 'money' or its related keywords are not frequently used. As a result, the ads served are more related to 'creating blogs' and not entirely relevant to the whole content of making money online. This is one example scenario of irrelevant ads.

There are a few things that you can do to get more relevant ads served on your blog:
  • Are there ads available? - Make sure the keywords you're targeting have ads available to be served on your blog. If not, look for other keywords or different keywords with similar meaning that serve more ads.
  • Increase keyword density - Words that are used more frequently bound to be recognized as the main keywords of your blog. Try to increase the number of keywords in your content, title, header, URL, sidebars, footer, menus, outward links, bold text, etc. But don't repeat too much to the point that it becomes to obvious and annoying to the readers. Keyword Density at SEOChat.com is a good tool to use for this purpose.
  • Reduce irrelevant keywords - Check for words that are not your keywords but have quite a high density in your URL, header, menus, content, sidebars, footer, etc. They may be recognized as important keywords by Adsense bots. Make sure that the ads served are not related to them. Otherwise, you have to change them a bit to reduce their density.
  • One topic per page - Do not focus on too many keywords per page. This confuses Adsense bots to decide which keywords are the most relevant. If this happen to you, it's better to split the text into a few series in different pages.
  • Block irrelevant ads - Adsense gives you the option to block ads unrelated to your blog content that may appear without you wanting it to be there.
Optimal Ads Position and Design
Adsense allows a number of different ads design and position to choose from. Depending on your blog design and content, some of these ads position and design work better than the others. Which ones the best for you?

One thing for sure, it work differently for different people and different blog. The best way is to test them all. But there are some pointers to follow to cut your work short:
  • Blend content and ads - Most Adsense users found success when ads and content are blended together as if the ad blocks are not advertisements at all. A few tricks to do this is making the ads background and borders the same color as the content background, ads titles and links to be just like the content links. Many guides mention that blue is the best color for ads titles because they are the most common link color.
  • Place ads in content - Ads will blend better with content if they are placed together with the content. For example, see this page where you have the ads wrapped with the content just below the Post Title. But too much ads wrapped with the contents can annoy your reader. So try to do this moderately. You can look for examples in well-established blogs and see how the pros do it and adapt those strategies into your own blog.
  • Above the fold - Above the fold means that you put the ads where readers can see it without needing to scroll down the page. A substantial amount of visitors just check out sites for a few seconds only. Any ads that need scrolling would have missed their eyes.
  • Follow the heat map - The heat map below has been produced by Google based on the statistics of visits to Adsense ads. Clearly, based on this map, the best place to put ads is just at the beginning of the post, blended with the content itself. The other good section is on the left and above/below the post.
  • Not too much ads - The main purpose of a blog or site is to serve information to its readers. Crowding it with too much ads defeat the purpose, and people are not blind to see what you're trying to do. Avoid over-crowding yours with ads. Find a balance. There are other types of sites that are more commercial in nature - serving quick infos with lots of outward links. This maybe a place for you to place more ads to provide your visitors the option of finding the best products (i.e. ads) to go to.
  • Keep changing ads position and design - Regular visitors and frequent readers to your blog are more 'blind' to your ads, meaning that they've seen it too often that they know where NOT to look at. Avoid this 'Ad-blindness' by frequently moving around the ads position and changing their designs. Many bloggers found that this technique improved their click-through-rates after the changes, until the next ads-blindness kicks in again.
Bringing All Together
The key to Adsense success is to work on all these 4 different areas. Working on only 3 and leaving 1 factor behind will mean that your return is as good as the weakest one that you leave behind.

There are other small things that you'll want to consider in addition to the core tips above:
  • Not too much outgoing links - The less outgoing links you have, the less 'exit doors' your visitors have to leave. But not having any links at all would mean that you're not focusing on building quality informative site which is suppose to provide options for additional details. So, provide your readers with these outbound links but don't have them too excessively.
  • Using frames - if you're using frames, place your ads and contents within the same frame. Otherwise, Adsense bots will not recognize the connection between the two.
  • Don’t click your own ads - This is obvious. Google knows well. They'll even know if somebody else is doing this dirty 'deeds' for you. It's all in the IPs and correlating the click patterns. Don't even encourage your readers to do it by giving some incentives as this violates the rule and will get you banned from the program. Basic rule - don't do it.
  • Monitor your statistics - One good tool to use is Adsense Tracker. This isn't a freeware. But, it does provide many options for you track your Adsense performance. It logs the performance of individual ad units, every pages, and basically answers the where, when and what ads are clicked. With this information, you'll be able to develop strategies to optimize your blog content and ads design and position.
  • Use alternative ads - There may comes a time when Public Service Announcement (PSA) ads, that doesn't add to your revenue, are served on your blog. Get something more profitable to appear instead. In Adsense page, you can select alternative ads to be served, such as Amazon or other affiliate ads program.
Note: Here's a more compact tips on Adsense optimization based on an article by Sharon Housley at About.com. There are some additional infos not covered in this article.

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This post was written based on some of the major facts of Adsense optimization presented by Darren Rowse at Problogger.net (Alexa ranking: 3321). I've summarized his post, with some additional infos, into a more compact form to let you grasp all the important points within a quick read. The original post by Darren is 6922 words, cut 65% less down to 2425 words, with all the important facts remain intact.

Adsense vs. BidVertiser - Which is the Best?

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Rafael Enriquez wrote the pros and cons about using BidVertiser and compares it with Adsense to see which one is the best money-making contextual advertisement program online. Because BidVertiser ads are similar to Adsense ads, both of them cannot be run at the same time on the same page.

Using BidVertiser: Pros
  • Adsense pays using check but BidVertiser pays through Paypal, which is faster.
  • Adsense’s minimum payout is $100 but BidVertiser’s minimum payout is $10, which is quicker.
  • BidVertiser allows you to choose the ads to open in a new window, which lets your web/blog stays open and hopefully to have visitors come back easily to your site.
  • You can approve ads manually with BidVertiser, not with Adsense.
  • You can test to see the final ads template with BidVertiser, not with Adsense.
  • You can choose to display eBay auction ads with BidVertiser, but not with Adsense.
  • With BidVertiser, you can see the amount of money advertisers are bidding on the ads that will be displayed on your site. With Adsense, you have to use other system (e.g. AdWords) which is not as easy.

Using BidVertiser: Cons

  • There are complaints of slow page loads using BidVertiser, not with Adsense. This creates major problems for users.
  • Adsense ads are more relevant and thus get higher click-throughs. This is because Adsense has more advertisers in their pool to offer the right ads for any keywords.
  • Because there are more advertisers competing in Adsense, chances are ads in Adsense pays more per click.
  • There complaints that BidVertiser doesn’t pay on time after reaching the min payout of $10. Adsense reputation in payment is better.

The decision which is better to use is left for individuals to take.


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