Google AdSense's New Update: "Better Ad Relevance" & "Smarter Pricing"

Apr 1, 2004 • 6:14 pm | comments (1) by | Filed Under Google AdSense

Did you get your Google AdSense Update today? The one that talked about the new changes to the pricing structure paid out to the publishers? Well, if you didn't, I included the message in the extended part of this entry, just click on the "Continue reading ..." below, to read it.

The thread is already 4 pages long at WebmasterWorld, so check it out.Hello,

We're pleased to introduce two changes to our advertising services that will enhance the quality of the ads served on your site and help grow our base of advertisers.

Better and Better Ad Relevance

First, we're enhancing our targeting technology to deliver ads that are even more relevant to the content on your site. Over the past year we've been refining the technology we use to deliver ads to content pages by leveraging data from across the Google Network, monitoring results, and feeding this information back into the system in other words, our technology is becoming smarter all the time. Now, in addition to understanding the overall meaning of a page, our technology determines the relevance of concepts found on a page to pick better performing ads. With this change we expect to deliver ads that better complement the content on your site and provide even more value for your users. The bottom line: increased relevance, and higher clickthrough rates.

Smarter and Smarter Pricing

Second, we're introducing enhancements to our pricing model for advertisers. Google's smart pricing has always provided better placement for better performing ads, and reduced the cost of a click to the least amount possible for an advertiser to stay above their competitor's ad. Now, with the new AdWords pricing model, well also automatically adjust the price of clicks across the Google Network based on their expected value to the advertiser. A number of factors will be taken into account when calculating the expected value, including the keywords or concepts that triggered the ad. For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.

For advertisers, each and every click will deliver the strong return on investment they have come to expect from Google AdWords driving even higher advertiser participation on Google and across the Google Network.

What to Expect

While these changes will impact different publishers in different ways, we expect that the combination of these changes will result in most publishers seeing more relevant ads, and a slight increase in the number of clicks from ads on their site. A few publishers will see a decline in revenues. The amount of revenue that a publisher earns through Google AdSense depends on the content of each web page, the availability of AdWords ads, and now, the value of the leads provided to advertisers. Enhancing our ad targeting and pricing models is an ongoing effort. With these changes we hope to drive more rapid growth in our advertiser base and deliver improved relevance resulting in an increase in your long-term revenue, higher clickthrough rates, and higher user satisfaction.

We look forward to providing you with the most effective advertising available.

We welcome your comments and questions about these improvements to Google AdWords and Google AdSense by email at


The Google Team

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