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Wednesday, September 1, 2010

Adsense hidden secrets

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Adsense hidden secrets
ALGO
Algorithm
IP
Internet Protocol (address)
CAN
Google Certified Ad Networks
ISP
Internet Search Provider
CPC
Cost Per Click
KW
Key Word
CPM
Cost Per Thousand (Mil)
MFA
Made For Adsense
CTR
Click Thru Rate
PPA
Pay Per Action (now defunct)
DB
Data Base
PPC
Pay Per Click
EPC
Earnings Per Click
SERP
Search Engine Results Page
GSA
Google Search Algo
URL
Universal Resource Locator


Noise and Supposition
2 Separate Bots
Do not confuse Googlebot (search) with the Mediapartners bot (AdSense).
Googlebot is responsible for your SERP position.
Mediapartners bot is responsible for ads served to you.


Secret Sauce -Only Google knows what is going on in the 4 boxes labeled "algo". Each Google algorithm is highly proprietary, and is constantly being tuned for profitability - for Google, the advertisers, and the publishers. What you thought you knew yesterday, can be substantially altered today. What is required is an open mind, diligent reading of Google webmaster forums, and personal experimentation.

Google has multiple chefs, each of which favors different ingredients, based upon trends discovered from continuing operations feedback. The chefs may not agree to the solutions required to fix a given problem. New problems will always arise. The algos will continue to change frequently.

Don't be surprised by new spices and flavors.




AdWords Advertiser Cost
Free market - competition determined - higher bids for popular terms

Advertiser sets the budget - minimum $ amount per month.
Advertiser sets the maximum $ amount spent daily.

Some AdWords advertisers frequently run two or more campaigns simultaneously -
---> Higher bids for the Search Results (Google dollars), and
---> Lower bids for the Content Network (Publisher dollars).

Google AdWords customers usually bid far less per click on the content network than they bid for Google Searcher clicks, since the perception is that clicks from content pages are worth less than clicks from the Google Search page.

However, SOME AdWords advertisers have opted to leave the "content switch" on, because they have gotten excellent results - high traffic and high conversions.


Guess-o-matic
I sure don't have all the answers, and my assumptions are frequently waay off. But it sure is fun trying to figure it all out. It is an undefined puzzle, which the curious (perpetual student) simply cannot ignore. (Yaa, I know . . . I am curious in more ways than one.)

AdSense Publisher Payout
The "Payout algo" establishes "Traffic Acquisition Costs", and ultimately Adsense Program success.
If G pays out too much, they lose money.
If G pays out too little, publisher quality will decline, and publishers will seek other options.

The lowest acceptable AdWords bid is $0.05 -
The lowest AdSense payout reported is $0.01 -
Therefore, at the low end, the minimun AdSense payout is AT LEAST as low as 20%.

Premium Partners receive a much higher proportion of the ad money bid - 80%? Some have mentioned that Google even has "loss-leaders", which would suggest 100% payout.
Does Google reward higher Click-Through Rates (CTR), by paying out higher Earnings Per Click (EPC)? Shouldn't they? Wouldn't they? The ads would be sold off at a faster rate, perhaps eliciting more advertiser dollars.

If this is true, AdSense publishers would do well to remove AdSense ads that perform poorly, in order to be paid more per click.

I found this 
AdSense on Non-performing Pages at Webmaster World.

I found this 
Higher CTR = Higher EPC discussion at Webmaster World.

I found this 
Payout Based on Natural Rankings at DigitalPoint.

Or maybe it's just dollar volume, or click volume, period. After all, Premium partners (20 million views per month) are paid the highest %. And their CTR only has to be a minimum of 0.5%.


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TODAY'S
AdSense Payout Theory


1. Bid amount is most important - first, the money must be there.

2. The V factor - Google's perceived Value of the page -
     ---> Analyze SERP position for value to AdWords advertiser
     ---> Analyze Click-Thru-Rate for value to AdWords advertiser

3. Impressions - Raw volume - Increase traffic

4. High CTR = High Value to Google and the AdWords customer
     (Now you are ready for high-paying TOP AD delivery).

5. Premium (high-volume) AdWords customers get special deals.

High SERP + high volume + high CTR = Gravy.
The gravy goes to the top performers, in a merit-based system.
The way that it SHOULD work, right?
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Definitions

Formulas
CPM - Cost Per Thousand
An Ad system in which the advertiser pays a fixed amount for each 1000 Impressions.CPM = $xx
PPC - Pay Per Click
An Ad system in which the advertiser pays a fixed amount for each ad that is clicked on - Google AdWords Ad position is determined by customer bid.Relative AdWords CPM = 1000 x CTR x EPC
AU - Ad Unit
A block containing from 1 to 5 AdWords Ads.
IMPT - Impressions
Quality of Ad Units delivered by Google
IMPT = 
fPop x (1 ÷ SERP#) x Inventory(Month end, month beginning variations)
CT - Click Total for period
CT = IMPT x CTR = Total Valid Clicks
ET - Earnings Total for period
ET = EPC x CT = Total Earnings
CTR - Click-Through-Rate
CTR = IMPT ÷ CT
EPC - Earnings per Click
EPC = ET ÷ CT
EPM - Earnings Per Thousand IMP
EPM = 1000 x CTR x EPC
PP - Page Payout
PP = IMP x CTR x EPC
SERP# - Search Engine Result Position
What position in the SERPs is your page, for the target search term? NOW!
fPop = Popularity factor of Search Term
(This will determine competition.)
Determined by -
---> Inherent Demand
---> Cultural Trends
---> News Events
---> Geolocation
---> Branding
---> Season
---> Gender
---> Age
Disclaimer - This definition table needs some more work.All the above refer to ONE SPECIFIC WEBPAGE
and ONE SPECIFIC SEARCH TERM.
I made this Adwords-Adsense block diagram to save myself some time,
and help me to understand the relationship between the two Google advertising programs.

Although much of the above is speculation,
I believe that this page is helpful to the webmaster community,
by clarifying the complex relationships involved.

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