A short bit about smart pricing

Smart priving is the new term for the evaluation process that google has implimented to gauge the value of a click to the eyes of the vendor who paid for the ad. In essence it not only takes into account the value of the keyword and what the purchaser bid to get the ad placed, but also the account that is responsible for displaying that ad. This smart pricing model uses an account wide estimate of a publishers conversion efficiency and uses this to determine what that publisher gets paid for that click, and what the ad owner pays. The system is in place to help ad purchasers not be overcharged for what would be perceived as a high cost but low value ad location.

You can read quite a nice article by Jensense here that shows how one poor converting site can lower your entire account value for every non related click.
http://www.jensense.com/archives/2005/10/one_poorly_conv.html

This entry was posted on Wednesday, July 5th, 2006 at 8:35 pm and is filed under Marketing, Online Marketing, Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.