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01 November 2005

Adsense Smart Pricing

Some useful facts from Inside Adsense about smart pricing and how to maximise your revenue:
1. Many factors determine the price of an ad.
More than conversion rate goes into determining the price of an ad: the advertiser's bid, the quality of the ad, the other ads competing for the space, the start or end of an ad campaign, and other advertiser fluctuations.
2. Clickthrough rate doesn't affect advertiser return on investment (ROI)
The percentage of clicks that convert for an advertiser is the most important factor in an advertiser's ROI, so it's not only possible, but common, to have a low CTR and a high advertiser conversion rate. It's also possible to have a high CTR and a low conversion rate. Don't remove the AdSense code from your site just because it has a lower CTR - it may be one of your best converting sites.
3. Remember the old chestnut: "Content is King"
The best way to ensure you benefit from AdSense is to create compelling content for interested users. This also means driving targeted traffic to your site -- advertisers don't gain as much ROI when paying for generic clicks as they do for quality clicks that come from interest in your content. Good content usually equals a good experience for user plus advertiser, which can be much more valuable than CTR. Keep in mind that like most Google technology, our system for calculating advertiser pricing gets updated regularly. We're constantly improving our ad products to benefit both the publisher and advertiser communities; what benefits one side ultimately benefits the other.


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