What is the smart pricing of the ad system?

Source: Internet
Author: User

The word smart pricing comes from Google's AdWords system, which refers to the system's ability to discount traffic revenue based on traffic quality in order to give advertisers a higher ROI (ROI). The use of smart pricing abstraction, any advertising system, as long as it has a variety of different traffic, and the effect of these traffic is good and bad, then smart pricing has its place.

    • If the system finds a traffic (a site, app, website, or app's ad bit) to work well, we don't discount its revenue.
    • If the system finds a poor effect (compared to the market average), we will discount its revenue. For example, suppose that a click should be revenue of 0.2 yuan, after discounting the flow side may only get 0.1 yuan, the specific discount coefficient is how much, rely on the smart pricing algorithm calculation results.

In summary, the result is a bad flow, and it will be partially deducted from the income it deserves. This will improve ROI, improve CVR, and make advertisers ' reports look better.

As for the "effect" is not good how to measure? You should try to choose the data that advertisers are more interested in, such as order volume, page registrations, app activations, and so on. For app ads, if you don't get the final conversion data, you can also use app installs, app downloads, app downloads, and more.

There have been several statements about Smart Pricing,google:

1. Many factors determine the price of an advertisement, not just the smart pricing.

In addition to conversion rates, there are many factors that can affect the price of an ad: The Advertiser's bid, the quality of the ad, the bid for the other ad, the start or end of the plan.

2. CTR does not respond to advertiser ROI

It is possible to experience low clickthrough rates (CTR), high conversions, or a high rate of CTR and low conversion rates. So if you have a low rate of traffic, do not worry, because it may have a high conversion rate.

3.Google does not earn money through smart pricing

In fact, smart pricing will be a reduction in the amount of money Google earns because advertising is less expensive to protect advertisers ' ROI. Finally, it rewards those who create high-quality traffic.

What is the smart pricing of the ad system?

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