Adsense, CTR & Smartpricing
Just keeping on the theme of adsense I have noticed something quite interesting recently with my adsense revenue. Perhaps someone can shed some light on what is going on.
Throughout recent times of visitng forums etc I have heard of smart pricing - this is where all of a sudden your value per click seems to go down - It didn’t really worry me as I was getting some decent values for clicks - sometimes $2 for a single click - and the average day left me with $5 or so in general. I always knew I was getting sometimes a minimal amount per click but this was balanced with occasional nicer valued click - I always assumed this was simply down to the keywords used on that page the ad was clicked + the ad the clicker chose to click on.
This particular site that earned a reasonable amount was pretty much the only site I had Adsense on. Around Christmas last year I had Adsense on one of my larger shopping sites - this gave a good amount of earnings though low CTR - but as it was Christmas there were a lot of visitors shopping so it didn’t matter - my best day was $60 across a couple of sites - averaging around $40 per day over the run up until Christmas.
After Christmas there was a huge drop which is what I anticipated - back down to $5 or so per day across the sites. I felt that Google Adsense was potentially jeopardising the integrity of my store - after all it doesn’t look too professional to have adverts on a store you intend to sell products from. With the benefits being so minimal I decided to remove the Adsense from the site all together and just leave it on the one site that seemed to do OK.
I didn’t give it much thought at the time but my advertising revenue actually increased - I put this down to me adding additional pages etc to the site with the Adsense still remaining.
Now bearing in mind I now have only Adsense on one site with visitors only reaching around 30 a day -
Now I have another two sites that have around 600 visitors each per day. I’m thinking well why not stick some Adsense onto these - could generate some revenue.
I added some additional ad units to the other sites and optimised them as I saw fit.
2 days later my ad revenue has dropped by 50% - yes I am still getting clicks from the newly added Adsense units but the CTR is much much lower. I am still getting the same number of clicks from the original site but they all now seem to be worth 10% the value they used to be worth.
Could this be smart pricing? The general theory of smart pricing is that if you have two identical adverts on two different sites one with high CTR and one with a very low CTR - the lower CTR could be payed less as it is considered lesser performing. Is this being applied to my whole account due to low CTR on the high traffic sites?
When learning about optimising Google Adsense, most say to use the full quantity of adverts allowed - this is 3 x content units and a link unit. but having these units will lower your overall CTR as each visitor will only have the potential of clicking one advert.
Google makes out on it’s blog that click through ratio (CTR) does not cause an effect to advertisers - does this mean publishers as well? but if so, how can this be the case.
Something very fishy is going on here and I feel it must be smart pricing.
So I am now considering removing all adverts from non performing site - Mainly the high traffic ones. Sites such as this very blog will naturally have low CTR as people are not looking to buy items they are looking for information - if my theory here is correct by having a site capable of decent CTR and putting Adsense on a site that has very low CTR I am making a substantial loss.
What do you think?






September 5th, 2008 at 11:40 am
[...] Go to the author’s original blog: Adsense, CTR & Smartpricing [...]
September 5th, 2008 at 10:15 pm
[...] Lukasz7669 wrote an interesting post today onHere’s a quick excerpt[#2: Edit Options>MightyAdsense>Adsense Code]. Just keeping on the theme of adsense I have noticed something quite interesting recently with my adsense revenue. Perhaps someone can shed some light on what is going on. … [...]
September 8th, 2008 at 1:58 am
Well, I’m not an expert but the best adsense guru I know is Griz. He makes mad money on Blogger blogs. Here’s his take on smart pricing
Now, since you’re not on Blogger, why don’t you use WP plugins to avoid smart pricing from social traffic and only reveal to search engine traffic?
I recommend either Who Sees Ads or a modified version of Shylock Adsense.
PRs last blog post..Card Magic Tricks
September 8th, 2008 at 10:34 am
It’s interesting as I wasn’t aware you may get smart priced from social media traffic - I do not partake in social media sites apart from digging the occasional post so I guess it doesn’t apply to me.
I don’t get how the social media sites really work if I am honest.
Thanks
September 11th, 2008 at 5:26 pm
I recently took Adsense off a poorly converting website and also implemented Griz’s suggestion on another site to only show adds to search users. It does seem to have helped.
September 12th, 2008 at 6:30 am
Griz seem to be very popular. I’ve heard of smart pricing but have no idea exactly what it means and what it does. I guess I will find out one day.
September 21st, 2008 at 7:13 pm
The problem is that in order to test the hypothesis, one needs a lot of clicks.
But I guess that when the CTR is low on blog, one should take the ads off anyway, or am I wrong?
October 11th, 2008 at 3:54 pm
I find that ad clicks on adsense are all over the place. I have gotten .01-1 in value and its so random. It gets annoying when you get the low ones.
October 15th, 2008 at 2:34 pm
I know how you feel, clicks in a niche site I am am working hard on dropped to a few pennies, sadly there are almost no affiliate offers to cover that specific niche other than amazon, maybe I will substitute with Adbrite to see what happens. Great post by the way, great points discussed.
Archie Penniess last blog post..Are You Promoting Your Blog on Spicy Page?
November 2nd, 2008 at 4:56 am
It’s long been believed that low clickthrough rates lead to lower adsense revenue. Would be great if you could post a followup sometime.
November 6th, 2008 at 6:00 am
Personally I feel that adsense is not performing to its potential in a lot of sites.
Miras last blog post..Finasteride for Male Pattern Baldness
November 19th, 2008 at 11:23 am
Due to recent recession problem around the world created this problem with Google Ads as well. I am also getting less income through clicks.
December 15th, 2008 at 6:50 pm
Great point about social sites. Since most social bookmark sites deliver poor quality traffic it seems correct that click thru rates would be low. I have seen many people say ctr is one of the main reasons you get smart priced so to correct the problem would make more money.
I actualy removed adsense from some sites they paid so little and took sales away from products on that site.
Kevins last blog post..Hsbc online banking.
December 23rd, 2008 at 1:52 am
I think Search Engine Optimization has it right - because of the global recession we are being paid less per click. I have been noticing that recently.
January 11th, 2009 at 11:17 am
please help me…
am have’be approved with adsense..
but first time i fill the form…..
am not check any content….
just search engine…
and now i don’t know how to put other conten adsense to my blog…
that’s just search engine..
somebody please help me….
this my blog url : allblog123.blogspot.com
thanks”… for alll…….
ardis last blog post..google adsense review
January 14th, 2009 at 12:29 pm
I’d say it is smart pricing kicking in - as an advertiser would you really want to pay full price for ads that aren’t converting?
January 17th, 2009 at 9:23 pm
Alot of people tell you it is easy to make money with adsense. Most people never make enough to get paid every month. Your better off with a product of your own or affiliate of some site.
February 18th, 2009 at 3:30 pm
I would be happy if i made 40 to $50 a day but if it went down to $5 like you said that would hurt. Good post some nice info. I see alot of people finding out about smart pricing and how it effects adsense earnings.
amys last blog post..Mold removal.
February 23rd, 2009 at 12:38 am
I think the less ads the more you make per click. Not sure but sounds like you seen same thing happen. I also seen some sites only show ads to search traffic. This also happens with social sites they do not get clicks so prices and earnings go down.
Chriss last blog post..los angeles cheap dsl.
February 27th, 2009 at 11:10 am
If you have a site that has alot of traffic and low click thru make sure to take ads of that site so other sites earn more. This could also be a certain page so you might want to run ads on each page and be able to take them off any page that does not do well.
April 2nd, 2009 at 4:19 pm
I guess that will not be an excuse for dropping your online spend.Due to recent recession problem around the world created this problem with Google Ads as well. I am also getting less income through clicks.
April 22nd, 2009 at 1:11 pm
I admit, I have not been on this webpage in a long time… however it was another joy to see It is such an important topic and ignored by so many, even
professionals. I thank you to help making people more aware of possible issues.
Great stuff as usual….
May 2nd, 2009 at 12:43 pm
I have seen people use code to only show adsense on certain traffic. they do not show it from image search or bookmakr or social sites traffic. This way most is all search engine traffic and they get better click thru.
marks last blog post..Broadband phone voip service.
May 11th, 2009 at 10:59 pm
I tried taking most of the ads off a site that paid very little per click. Once i just set it up with search and my other sites earned more so i agree with you take ads off do not use alot and if site has lousy ctr just put search box on that site.
cathys last blog post..Hotels in key west.
May 15th, 2009 at 3:37 pm
I have not had great success with ad sense myself. It does not seem worth the time and money in my opinion.
May 16th, 2009 at 4:01 pm
I also heard that image search lowers amount your paid. It seem the ctr drops and so does payments.
May 28th, 2009 at 9:27 am
Hello guyz,
It is a very informative post and very well said. I am new to this and it has made me understand even more.
Good luck for next
June 11th, 2009 at 10:18 am
Oh mine, it’s totally unbelievable! Thanks for sharing.
June 11th, 2009 at 2:21 pm
Anyone tried google’s AdPlanner yet?
Matt SEO - Webshoptimizers last blog post..Canonical URL links - osCommerce Contribution
June 12th, 2009 at 2:00 pm
Would appreciate some explanation on how page impressions, ctr (Click through rate) & smartpricing are related. I think I understand impressions and ctr but I don’t see how smartpricing is related. Heres my understanding… 640-460 exam
June 22nd, 2009 at 11:14 pm
Interesting that your revenue fluctuated so greatly. Sounds like you’re definitely onto something with the smart pricing. I can’t hink of any other explanation. Sounds like it would be worth further investigation and experimentation. I would be very interested to hear more.
June 27th, 2009 at 9:50 pm
I’ve never experienced ’smart pricing’ and I have a wide variety of sites that pay between $0.30 and $3.00. I always wonder if this is urban myth or truth.
July 3rd, 2009 at 6:16 pm
Ya know, this kinda makes sense. I have a few sites I put adsense on a few months back, and since it seems as though the main site I had it on’s cpc has tanked. I’ll have to try removing the bad performers and see what happens.
September 17th, 2009 at 11:08 am
One way of avoiding smart-pricing is to make use of adsense section targeting codes which will display only laser-targeted ads and in-trun cause a better CTR and also avoid smart-pricing because the user will be more interested to click on relevant ads than the untargeted ads!
Thanks
September 25th, 2009 at 12:45 pm
This is a really great post, Adsense is one of the best publisher which helps webmasters to earn some additional bucks.
October 9th, 2009 at 8:31 pm
because of recent recession problem around the world created this problem with Google Ads as well. I am also earning less money through clicks.
October 23rd, 2009 at 8:44 am
My ctr is only 1%…
October 31st, 2009 at 3:04 pm
Absence is a magical thing for those who are self employed and earning money through home based business. I like your post very much. anyways keep sharing and keep it up.
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November 5th, 2009 at 3:34 pm
yes i think adsense can be the great way to generate revenue and increase income as well in this tough economy.
November 8th, 2009 at 9:17 pm
yes its pretty interesting that your revenue fluctuated so greatly. Sounds like you’re definitely onto something with the smart pricing.
November 12th, 2009 at 2:26 pm
i have not earned so much from adsense well i think it takes time and i will definitely get some money from it .
November 21st, 2009 at 8:43 pm
Due to recent recession problem around the world created this problem with Google Ads as well. I am also getting less income through clicks.
November 24th, 2009 at 10:48 am
I think due to recent recession problem around the world created this problem with Google Ads as well. I am also getting less income through clicks.
December 1st, 2009 at 4:14 am
Remove ad blocks with ctr of 3% or less and wait 2 weeks.
December 16th, 2009 at 7:54 am
I think due to recent recession problem around the world created this problem with Google Ads as well. I am also getting less income through clicks.
December 16th, 2009 at 9:36 am
People are now really into making money online. They are now using this as an additional income generating source. And that is why I do agree with your post
December 16th, 2009 at 2:45 pm
Well i think adsense generally takes time to make money and you can not make so much money by adsense.
December 18th, 2009 at 1:22 pm
Because of recent recession problem i think people are going to make money online and trying to get an extra income.thanks!
December 22nd, 2009 at 3:05 pm
Well I have not had great success with ad sense myself. It does not seem worth the time and money in my opinion.
December 23rd, 2009 at 7:33 am
Because of recent recession problem i think people are going to make money online and trying to get an extra income.thanks!
January 2nd, 2010 at 7:26 am
this is wonderful to read and i am going to make an adsense account ,and i will get some money from it for sure.thanks!
January 7th, 2010 at 10:29 am
adsense is a wonderful program from Google and due to recent recession problem ,its a beneficial way to increase income.thanks
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January 16th, 2010 at 9:23 am
I think due to recent time of recession, i am not getting much money.but i think ad sense is a great way to increase income.
January 19th, 2010 at 11:40 am
ad sense is really a great for making money online and to generate revenue as well.
January 20th, 2010 at 5:50 am
That’s wonderfully written and this will help me to get into adsense.its a great way to earn money and increase income as well.
January 20th, 2010 at 8:43 am
well. thanks for your information. AD is something really helpful to your sales.
January 27th, 2010 at 6:37 am
This is wonderful to read the post about ad sense but In my opinion it takes time to generate money.
January 27th, 2010 at 9:36 am
Thanks for the post!!
January 30th, 2010 at 6:53 am
Wonderful to read this and i think ad sense is a great way to earn money and generate revenue as well.
February 1st, 2010 at 3:59 am
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February 1st, 2010 at 11:04 am
Your thought process is wonderful.The way you tell about things is awesome. i always wait for your posts. They are inspiring and helpful.Thanks for sharing your information and stories.
February 3rd, 2010 at 4:44 am
what i feel is that ad sense takes time to make money but its a great source to increase income.
February 5th, 2010 at 3:16 pm
Thanks for the article, it was a good read indeed
Thanks for sharing
February 6th, 2010 at 6:49 am
This is really a great post about the particular topic and i am really impressed to know about it. I have read your full article and truly speaking that it was really very knowledgeable and very interesting. I think you are really very close on your points. Anyways keep it up and keep continue with your valuable thoughts. In the near upcoming future.
February 7th, 2010 at 7:34 pm
That’s a really great post, Adsense is one of the best publisher which helps webmasters to earn some additional bucks.
February 10th, 2010 at 12:44 pm
That’s a fantastic post and i think ad sense is a great way to earn money and to generate revenue as well.
February 19th, 2010 at 9:55 am
Adsense is a great way to earn money and to generate revenue as well and you can increase your income too.
February 20th, 2010 at 10:12 am
Adsense is really good to make money online and its a great source to increase your income and to generate revenue as well.
February 22nd, 2010 at 5:36 am
Adsense is really a great source to generate revenue and to increase income ,Glad to read this post.
February 22nd, 2010 at 8:51 am
I think adsense generally takes time to make money but its a great source to increase income.
February 23rd, 2010 at 6:29 am
great article for all especially for beginner lot of information i learned here on ad sense.thanks.
February 23rd, 2010 at 10:26 am
that’s fantastic post and i appreciate it that you shared so useful and handy post,thanks
February 25th, 2010 at 1:40 am
I think this is really an interesting thing because I have seen so many people are associated with that. I think this is one of the best thing to discuss. Anyways keep it up and keep continue with your valuable thoughts.
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March 2nd, 2010 at 10:44 am
I must say,adsense is a great source to earn money and its really wonderful to increase your income as well.
March 2nd, 2010 at 8:49 pm
well actually i didn’t have sufficient knowledge of CTR and smart pricing before the read of this post but when we talk about adsinse i think its a great way to earn extra money. keep it up
March 3rd, 2010 at 6:51 am
Great to read this and i think its wonderful to earn money online and to generate revenue as well.
March 3rd, 2010 at 6:40 pm
I have not had great success with ad sense myself. It does not seem worth the time and money in my opinion.it takes time to make money.
March 6th, 2010 at 6:10 am
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March 10th, 2010 at 7:09 pm
well its really a great post which gives the idea about Adsense,CTR and smartpricing. since i have some knowledge about Adsense but CTR and smartpricing are pretty new to me. thanks for sharing such valuable post. keep it up