How does Google compute adsense?

[daddy03]

Wondering how this works-

I optimize a site to bring in organic traffic for a keyword that adwords estimates cpc of $3.00.

I get a visitor, they click on a text link that is similar and I get .10

Example:

Adwords cpc for bogus xxx is $3.12
I get an organic visitor for xxx diet. Google renders the following links:

Diet Plan $2.15
Diet Food $1.37
xxx Diet $3.12
xxx(similar) Diet $0.74

My earnings are $0.17

Can anyone explain this?

Thanks

[thecableguy]

The CPC is for the "SEARCH network", not the "display network" that you're using. Use the Contextual Targeting Tool to get a closer CPC (68%). It's also just an estimation for the max bid amount.

You may be targeting a high paying keyword, but it's the term that your visitor enters at Google that determines the CPC, not you.

For instance if you're targeting "home security", but the visitor finds your page by searching for "left handed small green widgets" that's the CPC you'll get.

Did I get the question right? (it's late my head stopped making sense hours ago )

[Talen]

For instance if you're targeting "home security", but the visitor finds your page by searching for "left handed small green widgets" that's the CPC you'll get.

This is inherently untrue, unless you have interest based ads turned on. If so then yes what a person is searching for can and will follow them from site to site and your site on home security might show them an ad for green widgets which in turn would have a lower cpc.

If you have a site on home security and have interest based ads turned off they will only get home security and related ads if you have your adsense account set up correctly. Even if they find your home security page through a search for green widgets and click on an ad you will not get the cpc of a green widgets ad if they click on a home security ad...thats just not true..

[thecableguy]

Okay the green widgets was a bad example, but if you look in your log files you'll see all types of longtail keywords that visitors found your site with that you didn't optimize your site for that may have gotten the click. What I meant was it's not always the keyword you're targeting that determines what the CPC will be.

[daddy03]

Yes cableguy you got the question right thank you.

Over 95% of my traffic is for the exact keyword I am targeting so the discussion above is not really relevant. I am very confused about the payouts. If Google is paying 65% (as has been argued on the boards - not trying to rehash this), they are getting $0.26 per click and passing on $0.17 to me, vs a max cpc of $3.12.

It just doesnt seem to add up. Am I missing something? Any suggestions on a better way to monetize this traffic? I got 6 clicks today (an all-time high for me but a grand total of $.78 which of course I promptly deposited into my kids college fund, vs. what I hoped would be closer to $10 - $12. Kind of discouraging.

Thanks

[dp40oz]

Definitely make sure you have ads set to both text and image. Image ads usually pay more because they buy out the whole ad block, and you'll be getting the highest bidders possible.

I don't know exactly how Google determines these things but all i'll say is if you find the right niches the payouts should be great. I rarely get clicks less then $1 and most of the time for much more and I have sites in tons of different niches.

Just choose your niches wisely. Rule of thumb I always use. Shoot for high paying niches unless you see a niche with tremendous traffic potential. I have sites that make $25 a day off of 15 visitors and 4 clicks and a site that makes $25 a day off 5000 visitors and 100 clicks. All niche dependent.

[antony05]

They have there own logic ..... No specific reason... sometimes depends upon from which country the users clicks on your ads ...

[Barry Unruh]

Originally Posted by daddy03

Wondering how this works-

I optimize a site to bring in organic traffic for a keyword that adwords estimates cpc of $3.00.

I get a visitor, they click on a text link that is similar and I get .10

Example:

Adwords cpc for bogus xxx is $3.12
I get an organic visitor for xxx diet. Google renders the following links:

Diet Plan $2.15
Diet Food $1.37
xxx Diet $3.12
xxx(similar) Diet $0.74

My earnings are $0.17

Can anyone explain this?

Thanks

How many ad blocks are you showing? Let's say you are using a very common practice and using the maximum 3 ad blocks. That represents 12 individual ads on your page (four in each block).

Only one of those ads might reach that maximum click price. Each of the other 11 ads are going to be progressively lower in price, that is just the nature of adsense/adwords.

Also, the odds are very high it is only a percentage of your CPC number since people buying ads on the content network will pay less than on the search. So, even though your maximum CPC for the phrase is $3.12 on search, it might only be $1.00 on the content network. Which means your maximum CPC for those 12 ads is now $1.00 and gets progressively lower through the other 11.

Then factor in you only get 68% of that value (not speculation, Google's reported amount). That means your maximum earnings for a click might be starting off at $.68 on that $3.12 CPC you saw. Then when you start flowing down through those other 11 ads it could get extremely low by the time it reaches the last ad.

Getting a $.17 click on a keyword which shows a $3.12 CPC in Adwords is not uncommon, it is actually very common.

[timpears]

There is a bidding war for The Content Network, and you are referencing the Search Network cost average APPROXIMATION. The Content Network cost is usually much less than Search Network.

There is no debate on what Google pays. They have admitted that they pay 68% of WHAT THEY GET for the ad. And that could be anything. You have to realize that the inventory they have to deliver changes by the second. When your page is downloaded, there may only be lower bids available for rotation. There really is no way to tell. So we are all guessing.

There really is very little relationship with the Search Network CPC you see on the key word tool and what bidders are paying when they bid for The Content Network. Using search numbers to determine what you should get from Google is the wrong thing to do.

[thecableguy]

Over 95% of my traffic is for the exact keyword I am targeting so the discussion above is not really relevant. I am very confused about the payouts. If Google is paying 65% (as has been argued on the boards - not trying to rehash this), they are getting $0.26 per click and passing on $0.17 to me, vs a max cpc of $3.12.

Could it be you were "smart priced"

Adsense Smart Pricing Explained


Not really into the Adsense thing anymore since I got my account closed a while back

[Backtrack Linkback]

Originally Posted by daddy03

Wondering how this works-

I optimize a site to bring in organic traffic for a keyword that adwords estimates cpc of $3.00.

I get a visitor, they click on a text link that is similar and I get .10

Example:

Adwords cpc for bogus xxx is $3.12
I get an organic visitor for xxx diet. Google renders the following links:

Diet Plan $2.15
Diet Food $1.37
xxx Diet $3.12
xxx(similar) Diet $0.74

My earnings are $0.17

Can anyone explain this?

Thanks

Idk what keyword you are getting traffic for to your website, but I do know that I always use a safe estimation formula that always works for me

Estimated Traffic * .2 (20 percent of traffic if you rank within top 5) * CTR of 5% * CPC * .2 (little bit less than 1/4 of what CPC is estimated by GAKT to be)

I averaged the 4 estimated CPCs that you displayed, and found the average to be $1.85

you should expect to receive somewhere close to this


1.85 * .2 = $0.369

^^^I would say that you are pretty darn close there

All of my sites seem to follow this formula.

Obviously you can raise the CTR and if you rank #1 you will get more of the estimated traffic, but I like to play it safe.

My 20% of estimated CPC is playing it safe, and its a number than you can always rely on.

As you can see from the calculations

Hope that helps buddy!

- Sam

[Backtrack Linkback]

Originally Posted by thecableguy

Could it be you were "smart priced"

Adsense Smart Pricing Explained


Not really into the Adsense thing anymore since I got my account closed a while back

that was a cool share, I would have never guessed that even PR can go into the equation.

Anyway, I still always use 20% of estimated CPC and it seems to be spot on for me.

[housewarrior]

For the guys who are smarter about Adsense than me... Is it possible that the dime payout might be as a consequence of a foreign click which might pay less? I have seen lots of penny clicks over time and I read somewhere that this is the reason.

Norm

[Backtrack Linkback]

Originally Posted by housewarrior

For the guys who are smarter about Adsense than me... Is it possible that the dime payout might be as a consequence of a foreign click which might pay less? I have seen lots of penny clicks over time and I read somewhere that this is the reason.

Norm

It certainly could.

You should read the link that was shared 3 posts above yours. It explains it all.

It also has a lot to do with the keyword that the person searching used to get to your site.

For example,

If they searched

"lawyers" that are well rated and located in california

vs.

lawyers in california


even if you site is all about the keyword phrase, lawyers in california

odds are your CPC is going to be wayyyy lower

if they were searching that same phrase, but from a hotel in the UK, then your CPC is probably going to be even lower than that.

[housewarrior]

That's exactly what I thought. Thanks for the reply back on this. And I went back up to re-read the reply three above.

Lots of things to take into consideration whenever you build a project. That's for sure!

Norm

[QUOTE=Backtrack Linkback;5384389]It certainly could.

You should read the link that was shared 3 posts above yours. It explains it all.