The Highest Paying AdSense Ads May Not Always Be On Top

If there are multiple Google AdSense ad units on a web page, it is generally assumed that the top ad unit (the one which appears first in the HTML source code) will serve the highest paying CPC ads. Well, that may be true most of the times but not always. Let’s understand why.

The Google AdWords system assigns a "Quality Score" to every advertiser who is participating in the ad auction and this score is determined by the quality of the advertiser’s website, the historical CTR of his ads on Google and a couple of other factors.

For instance, the Google ad system is likely to assign higher Quality Scores to Sony.com or Amazon.com for the keyword "digital cameras" than an advertiser xyz.com who is trying to promote his eBay auction on the AdSense network.

Google than computes the final rank (or ad position) of each advertiser using their respective quality scores and the maximum amount they are willing to pay for a single click (CPC).

Ad Rank of an advertiser = Quality Score * Maximum CPC Bid

Coming back to our original example, let’s say four advertisers are bidding in an auction to show up on a web page that is about "digital camera".

The advertiser Sony.com has been assigned a score of 8 by Google and they are ready to spend a maximum of $16 per click. Amazon has an even quality score (9) but they have specified their maximum CPC as $14 and so on.

Now the ad position (column 5) of various advertiser in an AdSense unit is determined on the basis of Ad rank (column 4) but the actual cost (or CPC) that these advertiser have to pay per click to Google is not always in that order.

As Dr Varian explains (time 05:50), the price that an advertiser has to pay (his actual CPC) is equal to the Ad Rank of the advertiser just below him divided by his own CPC bid.

So in the case of Sony, they’ll have pay 126 (the Ad Rank of Amazon) / 16 (CPC Bid of Sony) and this is equal to 7.88.

The click cost for Amazon will therefore be 120/14 = 8.57 which is more than that of Sony but the Amazon ad will still show up below the Sony ad since the Ad Rank of Sony is higher.

Google will share a fixed portion of ad revenue (or click price) with the AdSense publisher (where these ads are shown) and therefore a click on a Sony ad will fetch him less revenues even though the ad occupies the top slot.

Comments

Email On Deck: A disposable email address that works

Today, Team Inforpioneer brings an interesting Email service for our reader which will definitely help our readers to improve their internet security and will benefit in some other ways. Here is a short description of this service. EmailOnDeck.com is the premier site for all things relating to temporary, disposable and throwaway email addresses. We want to help you avoid SPAM, protect your online privacy, and stop you from having to give away your personal email address to every company and person on the internet who insists on you giving it to them. We work hard and will continue to work hard to give you a disposable email address that works with any site or app. We hope to help give you back the control of deciding who you want to give your personal info to. Temporary emails are perfect for any transaction where you want to improve your online privacy. Use them when you buy or sell Bitcoins or trade cryptocurrency, at exchanges, or locally. They can be used for QA tes...

A Brief History of 9 Popular Blogging Platforms

E ven though Microsoft’s spell check insists that “blog” and “blogger” are not real words, they’ve been been in the dictionary since 2003 . Blogs and their platforms have a lengthy history. The beginnings of blogging was a time not unlike today: Plaid was in style, a beloved rock star had passed, and the Internet was just gaining momentum on college campuses. In 1994, then Swarthmore College student Justin Hall started an online diary called Justin’s Links from the Underground . The site, which first started as a guide to the web, soon became an account of Hall’s life, and earned him the surely coveted title of pioneer blogger. Three years later, Jorn Barger would coin the term “weblog,” and it’s short form, “blog,” was later coined by Peter Merholz. Today, the web is comprised of millions of blogs covering every topic imaginable. Here is short history of some of the medium’s most popular platforms. 1. Open Diary Founded in 1998 by Bruce Ableson, Open Diary was the first website that ...

SEO Optimizing A Website For Improved Value

SEO or search engine optimization is something that every web owner and creator should be aware of. Even if a website owner hires an expert to carry out the online marketing, understanding the very basics and how it really can improve a websites performance and popularity is important. Simply put, optimizing a website is important and is built around keywords that are valuable to a website and to the products or services it is trying to provide. By focusing on main keywords or key phrases for a business, and expanding on them over time, can improve the amount of visitors a website receives, in turn increasing profits or simply improving its popularity if it is an information website. SEO is valuable, and means a way of making a site appear at a higher ranking in search engines such as Google, Yahoo, AOL etc. Using this important type of online marketing can reap great benefits. It takes time to learn and time to complete, and is a constant job to keep a website performing well above co...

Info Pioneer

Search This Blog