Many Google AdSense publishers are quite concerned about AdSense Smart Pricing. According to Google, smart pricing automatically changes the cost of a keyword-targeted content click. The change in cost is based on Google’s data that determines whether a click will result in a sale or a registration for the advertiser. If the data determines that the click won’t convert, the cost of the click is lowered – which means the publishers revenue for that click is lowered.

What concerns publishers the most is not the reduction in the cost of the click, but the fact that Google has very little to say about Smart Pricing. If you visit the Google AdSense site, the only mention of Smart Pricing that you are likely to find is Google’s very short claim that Smart Pricing is good for both publishers and advertisers. What Google has not said, but publishers have found to be true, is that Smart Pricing does not just affect one page or one site – it affects the entire account.

What this means to you, as a publisher, is that if one site in that is in your AdSense account converts poorly for Google’s advertisers, every site that you have the AdSense code on is affected. This means that the cost of the clicks will be reduced every single time for each of your sites! The only good news is that Smart pricing is updated each week. Therefore, if you remove ads from the site or sites that you suspect are not converting well, you may see the cost of the clicks from your other sites go up.

Smart pricing is also tracked with a 30 day cookie. Therefore, if one of your sites starts performing poorly, or if you place the ad code on a new site that hasn’t really taken off yet, you will still see the higher cost revenue for clicks that you received within the last thirty days, even though you have that poorly converting site in your network. At the end of those thirty days, however, if the site is still converting poorly, you will see a decrease in the cost-per-click for all of your sites. This affects all of your Google ads, including image ads.

Publishers are removing the ad code from sites that aren’t performing as well as others at an alarming rate, and many publishers are leaving the AdSense program altogether, and moving over to Yahoo Publishers Network – taking their high performance websites with them as well. Google is obviously feeling the pinch because they have started calling publishers who have left AdSense to try to get them to return to the program. One thing is certain – the less Google has to say about Smart Pricing, the more suspicious publishers are becoming!

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