The New Google Adsense Smart Pricing Explained

This may be new to you, but this is what Google applies exclusively for the advertisers to gain trust and confidence to the Google advertising network.
Smart pricing is a method for advertisers to achieve the best experience for their AdWords campaign. It is a way to regulate the advertising bids to return the value they give on Adsense sites.

Without it, or if no control and adjustments are made, the maximum amount for advertisers’ bids might be decreased. When this happens, advertisers will lose confidence in the Google Adsense network. In short, low revenues and leads for the advertisers and Adsense publishers. With Smart Pricing, it can let them bid self-assuredly the maximum amount they are willing to pay.

What does this have to do with your blog as an Adsense publisher?

Well, a lot. First is the reputation of your blog. Google assures the advertisers that their winning ads appearing on different sites should lead to business sales. If there is none or only little, again, the maximum amount will decrease.

For example, we have four websites where advertisers bidding for their ads to appear. So, one advertiser wants to assure business results. He set bids how important the clicks on their ads will be appearing on these four sites.

We have Site A, B, C and D. Let us say site A has the highest quality content, B has satisfactory content value, C the average, and D the lowest. Or let us say these sites are rated according to how often a site leads to business results for advertisers. So one advertiser set bid $4 as the maximum bid for all websites. Smart Pricing adjusts the bid amount based on how valuable a site is or how often a site has more business results from the ad click. Say, $4 for site A, $3 for B, $2 for C, and $1 for D.

This is reasonable enough for both the advertiser and Adsense publisher because, logically, if you’re an advertiser you don’t want to bid on a high amount with a low business results.

As what I’ve said on my previous post on how a publisher’s Adsense earnings work through SEO and Social Media Marketing, it does relate a lot to smart pricing. Although this can’t be concluded as a fact, it is proven based on my experience how my Adsense earnings reduced. This is probably the results of too much SMM. If too many users click on your ads from social network sites, it can lead to poor business results for advertisers. This doesn’t mean there are no customers from social media sites. It’s just that those who click ads coming from Google are real customers.

How can you gain blog site (blog) reputation for publishers?

The most important thing that Adsense publishers needs to do is to write a high quality content; content that is valuable for readers, one that is unique or coming from your own understanding of the topic and not just a rewrite of a past content from other sites. Second is, make sure you are getting clicks from potential customers and not just out of user’s curiosity. Also, implement the placements of your ads well to avoid accidental clicks or click frauds.

Smart Pricing is made to make Internet business much more reasonable for advertisers. If advertisers continue to increase their maximum bids for commercial keywords on their Adwords campaign, the advertisers’ cake continues to grow more for the whole publishers’ network, and the publishers can have the right shares of that big cake.

This article is based on words by Google’s Chief Economist Hal Varian from a video Adsense Smart Pricing. View it below:


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