Smart pricing?!

[cruocitae]

I've read an article about smart pricing, but unfortunately still don't understand what's it about.. :/ It's seems f***in horsesh*t to me, mainly cause it somehow reduces my earnings.. I didn't catch the idea, help me out please.brHere's the site: brhttp://vitalads.blogspot.com/2006/04...t-pricing.htmlbr

[adsensepro]

Smart pricing introduce a variable in your earnings equation. You have to multiple the CPC by that variable to get your earning forthe click. The exact value of the variable is unknow to public, but it obviously is smaller than 1 and depends on the conversion rate (the rate that a click leads to a dealasacton).

[cruocitae]

Still unclear (

[mondine]

It just means that Google uses a formula to determine how likely it is that a click on an ad on your site will result in a 'conversion' (sale, call, or other follow-up) for the advertiser, when determining the price of a 'click' for an advertiser (and the money you'll get for it).

The sites that talk about this say that pages on your site that produce poorly for this formula may drag down your price-per-click on your entire site, or number of sites in an AdSense account.

[mertero]

Is smart pricing done for each publisher (i.e. This web site with adsense is usually achieving only 70% conversion rate...) or for each ad (this adword campaign usually achieves only 70% conversion)?

Or both?

[cruocitae]

ah.. okay. Thanks everybody.