Wednesday, 13 August 2008

Google Adsense Smart Pricing

There are hundreds of bloggers who blog for earning everyday through ad programs like Google Adsense. They keep on looking for new topics and work round the clock with new blogs. However, what they may not be aware of a factor called "Google Adsense Smart Pricing". In this article, I'll attempt to explain What is Google Adsense Smart Pricing, How Google Adsense Smart Pricing works, what should a webmaster or blogger keep in mind while designing the site for Google Adsense Smart Pricing, How Google Adsense Smart Pricing affect the websites revenue?
Google Adsense Smart Pricing
What is Google Adsense Smart Pricing?
Google Adsense Smart Pricing is a conceptintroduced by Google Adsense program for averaging out the earnings when the ad code belonging to the same account is used across multiple sites having different rankings in Google Page Rank.

Confused? Let's take an example. Suppose I have a very good site ABC.com which ranks pretty high in Google Search results, say Rank No. 2. I am having a Google Adsense ads being displayed on my site. Now, I start any additional site, say XYZ.com, which has a lower rank say Rank No. 6. I use the same Google Adsense account for displaying ads on my second site, XYZ.com, which has a lower rank. I will be hit by the Google Adsense Smart Pricing as I am using the same Google Adsense Account code on 2 sites which are having differnt page ranks.

How does Google Adsense Smart Pricing work?
The Google Adsense Smart Pricing works on averaging the ad revenues from the two sites. This is a hypothetical example and the actual working of smar pricing may be different. Say I have 2 sites with page ranks 2 and 12. So I was making 50 cents per click from the first site, since its page rank was better. Now when I put up the same adsense code on site no. 2 with rank 12, the revenue per click may not be that high. I may make only 5 cents per click from ads on site no. 2. However, since I am using the same adsense account on both the sites, Google is smart enough to detect that, and may average out my earnings and bring it down considerably. Say, I may make only 10 cents per click even on the ads on my first site, which was previously generating 50 cents per click, when I was using adsense only on first site.

How to prevent being penalized by Google Adsense Smart Pricing?
That's a tricky thing to do and Google does not recommend tricks. :-)
The simplest thing to do is to maintain a single site and single adsense account for that. However, if you still want to have multiple sites, you may think of using different adsense accounts, one each for each site (Though not recommended).

Can an individual sign up for multiple adsense account?
As far as I know, an individual is NOT allowed to sign up for multiple adsense account.
Google Adsense does not even allow 2 individuals to have accounts mentioning the same address. So let's say you have an adsense account at your home address, then your spouse may not be allowed to sign up for another adsense account at the same address. He/She will be required to signup for a new account at a new address (say office address).

How have I tackled the Google Adsense Smart Pricing averaging?
Keep it simple.
As a novice blogger, I also started multiple blogs and used the same adsense account across all the blogs. However, I later learnt about the Google Adsense Smart Pricing concept. So the simplest thing I did was to maintain only my primary blog (this one) and removed adsense code from all the other low ranked blogs and sites.
The thing worked and today the CPC rate for my top ranked blog is much better. Though the other blogs are still there, I am not serving any adsense code on those low raked blogs.
May be this is one of the ways of Google to prevent unnecessary creation of new blogs/sites which are not upto the mark. They probably want bloggers and webmasters to concentrate only on 1 single site and maintain its quality.

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