Site targeting ads was introduced by Google to acquire the more traditional CMP advertisers user base. Advertisers can select sites (sites under the adsense network) to display their ads on CMP basis (i.e. on page impression basis). Advertisers still need to place their bids which compete with other CPC ads. According to Google, there is algorithm to select which ad to display on publisher's page which in theory should yield the best revenue to the publisher. However, the exact mechanism is unknown to the public.
Recently, Google has added a new option on the adsense report to allow publisher to check the site targeting ads performance apart from the contextual (CPC) one. Some publishers reported that the site targeting ads performance is as bad as only 10% (or even lower) of the contextual one. e.g.
with 1000 page impressions, the contextual ads yield $10,
but the site targeting one give less than $1.
Comparing the performances, there seems no good reason to waste the ad space for site targeting ads. However, according to google:
"... Through site targeting, pay-per-impression ads compete with pay-per-click ads to be displayed on any page. Site targeting will work to your benefit, as more competition among ads will lead to higher potential earnings for you... "
If you trust google's algorithm (about when to display site targeting ads verses contextual ones), you should just keep the site targeting ads running. Otherwise, you should opt-out from the program. However, you cannot control site targeting from your adsense control panel. You need to send an email to adsense support to opt-out.
From our experience, getting rid of site targeting ads does not have much impact on the revenue. Click rate on contextual ads remain more or less the same as before and the total click rate dropped a bit since all site targeting ad clicks are gone. This suggest that google is doing well in the ads selecting algorithm?
If you want to run an experiment on this, please share to us your result afterwards.
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