13.1 What Google Has Said About Smart Pricing
This is what Google has officially told us about Smart Pricing:
The price of an ad is influenced by a number of differentfactors.
Those factors can include: the bid price; the quality of the ad; competition from other ads in the same field; the location of the ad as part of a marketing campaign; “and other advertiser fluctuations.”
The ad price is not affected by the clickthrough rate.
Sending advertisers large numbers of clicks will not increase the bid price. (That doesn’t mean that CTR isn’t important at all for your revenues; it’s just not important in determining the amount you receive for the click.)
“Content Is King.”
Google makes it pretty clear that sites that will benefit most from AdSense are those that “create compelling content for interested users.” They also emphasize the importance of bringing targeted traffic to look at that content. Those are two different factors which together create a site with loyal, appreciative users. Just the sort of thing that every serious webmaster wants.
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