Recently I discovered a new technique which eliminates the impact of the smart pricing algorithm which have recently introduced by Google. As you may not know what smart pricing is, I will start with the basics :

Some time ago, the adwords added a new module for conversion tracking. That way advertisers can know which campaigns and keywords are converting better for their products.

In conjunction to this Google created the “smart pricing” algorithm which affects publishers. When the traffic you send to Google’s advertisers is not converting well, you get less earnings per click, while the advertiser gets discount to their campaign. The bad part of this is that smart pricing affects your whole account, so even well converting pages/sections of your site can have lower earnings.

As I’ve posted here I started an experiment which is actually very simple. I’ve removed all the low converting advertisements from my site, and got the same earnings with about 40% less impressions. This looks like a very good result as now I have a bigger advertising inventory to use with other programs, and maximize earnings.

If you want to join me in this experiment, just follow those easy steps :

• First create custom channels for every section of your site
• Wait a few days and see which channels have the best earnings per click
• Remove all the ads from the low CPC channels
• Don’t change anything for a few days or for about 10.000 impressions. This last part is because you need to have real results from your experiment

If you have any results please feel free to share them with us