If you monetize a blog then you want the maximum blogging income possible. The one thing you don’t want is to waste the value of any clicks.
Let me clarify ‘smart pricing’. Whilst Google does not say much about it, they will cut your income by 90% if you don’t have a site that is performing to their standards. Their standards equate to CTR of around 3% or better. If your CTR is below then Google will only pay 10% of the standard click rate. Instead of a keyword click being worth $0.50, it will only be worth $0.05. This is a huge drop – but it gets worse.
If you run more than one site then your return is based on your lowest CTR site. If you have three sites, one with a CTR of 5%, a second with a CTR of 4% and the a third with a CTR of only 1%, they will all return the value of the third site – 1%. This is known as ‘smart pricing’. Is it fair, probably not. Whilst Google can tell you every thing about a user and about a blog, they cannot account for different web/blog sites.
How do you avoid ‘smart pricing’? First, make sure you have good analytics on each of your ad units. Secondly, if any ad unit is performing at less than 3%, either reposition it or remove it altogether.
You can reverse ‘smart pricing’. Simply remove the poorly performing ad units. Once you stats are showing a better than 3% CTR across the board your income level will return to full value. This can take from 3 to 10 days.
In brief. Your blogging income will fall across all ad units if just one of those ad units has a CTR of less than 3%. Keep good statistics on each ad unit. Remove any poor performing ad units. Another good tip provided to you by the best blog marketing journal around.
