What is Smart Pricing?
Basically that is what Google introduced to help advertisers to pay less for a click (in case of potential click fraud, the pay will be near to zero).
How does that work?
Google introduced a parameter when calculating the CPC (cost per click). That parameter is a number <>
The exact equation is not opened to the public. However, below is some hints about it:
- if the same person clicks on an ad multiple of times or the clicks act like potential click fraud, the parameter will move to near zero.
- the higher the page rank of your page, the higher that parameter will be
- the higher the conversion rate the higher that parameter will be, however the conversion rate is calculated in per adsense a/c basis. So, if some of your ads is having low conversion rate, it will pull down the whole figure. You may want to spot them out and filter those ads (using the competitive filter on your adsense control panel).
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