The Explanation of Smart Pricing from Google Adsense

In the second part of “Insight into your earning: How smart pricing fits in”, Google Adsense explains how smart pricing affects advertisers and publishers. I suppose most of us are more concerned about smart pricing towards publishers and guides on how to avoid being smart pricing. According to Google Adsense, smart pricing is a tool designed to help advertisers bid efficiently and effectively on many publishers’ ad auctions at once. You may check out the video presented by Google Chief Economist, Hal Varian explaining the purpose of smart pricing, how it plays a role in the ad auction and how it benefits the entire advertising ecosystem of publishers, advertisers and users.

You may find that there is only examples on how smart pricing affects advertisers and how the bids place by advertisers are adjusted. It does not explain or give examples of how the earning reduces from Publishers point of views. There are two advices given to avoid being smart pricing, which is to create high quality content and avoid accidental clicks. The article also stress that smart pricing is not intended to be a “punishment” for publishers.

Regardless of what explanation Google Adsense team gives, there are few things that publishers concern about. Those concerns are about the huge drop of earnings from Google Adsense, adjust of final earnings and clicks without earnings. I suppose publishers would like to know and understand the role of smart pricing in the above condition mention. Publishers like to know under what circumstances smart pricing will take place and how to detect and avoid them. At the end of the day, the only goal publishers wish to achieve is to maintain Google Adsense earning. If a detail and clear explanation is provided, publishers will be able to improve their Google Adsense earning without worrying about falling into smart pricing zone.

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One Response to “The Explanation of Smart Pricing from Google Adsense”

  1. George says:

    It really depends on the website and niche, for some it is working well if you blend ads with design, sometimes it is working better if you place text links which looks like navigation.