visnum

As an adsense publisher, I am observing the effects of the financial crisis on my advertising revenue. It dropped by more than 50% in the last three weeks. While I was going to blog about only that, I have read Vered’s post on adsense ads.

Then I decided to take her opinion into consideration too. Let’s just start with what I am going to say. It’s not nice to see that adsense income decline but there are lessons from this. I think the most important lesson is that people click on adsense ads really for the reason of being interested in the offer. We understand that because when there is a financial crisis, the click through rate declines. Pay per click cost didn’t decline too much, at least in my personal experience. So, from this data in hand, we can clearly understand that encouraging clicks do not help on increasing adsense revenue.

Encouraging clicks is strictly prohibited by Google anyway but people always try to find a way to encourage people within the rules. This is not going to generate any further income. People still try it because they think adsense ads are there to trick visitors into clicking them. They don’t think adsense as a process. In fact, adsense is a process as I have written earlier about contextual advertising and it involves those steps:

1. You have a meaningful article on your page.
2. You can be found among search results and you are in a relatively decent position, let’s say your page comes up between #1 and #50.
3. The search terms are related with your topic of your article.
4. There are enough adwords clients that need to show their ads on such a page when it is found with such keywords.

Let’s come to where adsense needs more effort in total quality management.

Some advertisers are eager to pull visitors to their website and they design and prepare the copy of their ads to be very attractive. Those advertisers usually decrease the overall level of quality in adsense because they are after quantity, instead of quality. The type of advertising Vered talks about is this kind of advertising.

However, with this financial crisis and lessons from that in mind, push marketing doesn’t make sense. When a visitor has the incentive of buying a product that she is interested in, she is going to click that ad anyway.

Thus the most important part lies in advertising visibility, that is putting the ads on places where people are not affected by ad blindness.

I was going to write more on this but I must stop here because blogger.com is banned in Turkey and I want to follow those news. I’ll continue to discuss adsense total quality management later on.

At this point, we should talk about “smart pricing”. Smart pricing is a technique that Google Adsense program uses. They have written only once about smart pricing. There is not much detail on how this operates. Briefly, if your web site creates too much clicks without ending up with any conversion (which means a sale, a subscription or any other criteria which is set by the advertiser or google adsense, for instance having visited more than one page in the destination web site or spending a certain amount of time in that web site) your web site is then being smart priced for a period of time. This is when you see 20 clicks on an ad which only brings $0.20, for instance. Those numbers are not exact numbers and I am not an adsense professional, so don’t take them as the ultimate truth. I am just telling this to give you a rough idea. I even don’t know whether this smart pricing is still being used or not. This is personal experience and knowledge from my own readings over the web.

This notion of smart pricing should give us another clear idea what adsense is all about. It is designed with the intention of being profitable for every player in the game. Your visitors are part of that game too. According to this perspective, putting adsense ads on your web site is like an additional service that you offer to your visitors. So, it is also meaningless to use plugins to set advertising visibility such as “no ads for friends”, “ads only for visitors who come from search engines”, etc. Advertising may be evil on many levels but Google Adsense is less evil in comparison to other types of advertising. This is the essence of Adsense and other similar contextual advertising systems.

Now let’s come back to the view that advertising sucks. This is the point where I suggest a more thorough total quality management for adsense. Adwords clients must understand at least what I have understand so far. Only than they will design meaningful ads instead of sucking ads.

There is still more to say about that. For instance, about our economic system as a whole. Because you never see an ad that sucks when it is about an absolutely needed good or service. Ads suck mostly when they are about a good or service which is not really necessary. Of course this is also a subjective issue but anyway, sometimes you can decide that only by using your intuition.

Surprising, but true. He states that ads are the new online tip jar. He should be reminded of two facts: 1) Google Adsense is dominating the internet advertising market. As of March 2008, they have 70% share of the internet advertising market including DoubleClick. 2) It is strictly forbidden to encourage clicks according to Adsense TOS. Seth is free to fantasize though however these are the solid, hard facts of the situation. Here is his blog post:

“I never click on ads.”

It’s almost a badge of honor to say that. The subtext is, “I’m too smart/busy to waste my time doing that,” or perhaps, “I don’t want someone to sell my attention.”

But the real effect is that you’re starving great content.

I can say this because there are no ads here but,

If you like what you’re reading, click an ad to say thanks.

Pretty simple, but not an accepted online protocol, at least not yet.

If every time you read a blog post or bit of online content you enjoyed you clicked on an ad to say thanks, the economics of the web would change immediately. You don’t have to buy anything (though it’s fine if you do). You just have to honor the writer by giving them a click.

You still get what you pay for, even if you pay with attention.

With all due respect, I should say that his post is meaningless. Far from the imagination of an ordinary Seth Godin post.

Edit: Seth Godin felt the need to explain himself further on the subject.

21st century started with contextual advertising and since, many people are trying to gain an income from that. Sometimes it looks like snake oil business, sometimes it looks like treasure hunting. Some people / companies made great money from it while the majority of people could not pass a certain level of income.

If you dream about having some extra dollars or finally go solo with the help of your website / blog then you have to know and understand a couple of things and you have to be patient. So what are those key points?

When it comes to programs like Google Adsense, blogs look like very successful and people usually think that they should have a blog to achieve the material success from such programs. That’s irrelevant. The success of blogs come from sustainability. Successful blogs keep themselves updated several times in a day and this brings search engine visibility. Why? Is it because they update regularly? Not only that. If you update any website regularly and add meaningful articles to it that doesn’t only mean that you are updated but also means that you are growing in quantity of articles. The more pages you have, the more search engine visibility you will gain. This is simple to understand. If I have one page on a certain topic and it is usually found from search engines with certain keywords than this means I can have a decent traffic. If I have a couple of good pages than I would have several decent traffic. If I have thousands of pages in my website, than it is near sure if not hundred percent, that I will have at least tens of pages which would get quite well amount of visitors from search engines.

However, I am not talking about a random success. I am just telling that you don’t know exactly what will attract your visitors and you have to be willing to track your successful pages about why they have attracted so many people. Is it the topic? Is it the advantage of low search engine competition in that area? Is it because you have used good keywords in an optimum level of quantity? You have to look and think about those factors.

And what about page rank? I have a blog post that is #1 in the search results among 4.810.000 results. The page rank of the blog is 3 and this single page’s page rank is 1. What about that? The moral of the story is, don’t get obsessed with page ranks. This is not the only example that I can give you. I have many single pages that rank within the top ten results on Google and most of them have a page rank of 1 and others do not have any page rank assigned at all.

Moreover, what do you imagine when you hear the word page-rank? There are tens of Google search pages in tens of different countries with domains accordingly. This is one factor, a variable. Another variable is that any web page can be found in search results via very different keywords. Example: you reach this page on Google while looking for successful blogging and you are in France, using Google.fr and somebody else is searching for page rank effect on contextual advertising income and finds this page and she is in China. Another reader does a search for “success” and don’t come up with this page because it will be the 18th million result.

So, can you get that? Imagine a web page with a page rank of ten and that doesn’t mean it will show up in search results in every search related with that page. Therefore, don’t get obsessed by page-rank.

Let’s go back to income / search results relation. The page that comes first among 4.810.000 results do not have any effect on my adsense income (I didn’t create a channel for this single page, maybe I should create and check but I know this because said blog is not very profitable either. This is because of the low traffic). Because there aren’t any related adwords client to evaluate this page. Thus, people come and go to the web page and they don’t really see a hundred percent related ad on the page. If they would see, they would most probably click on them.

So, success comes when:

1. You have a meaningful article on your page.
2. You can be found among search results and you are in a relatively decent position, let’s say your page comes up between #1 and #50.
3. The search terms are related with your topic of your article.
4. There are enough adwords clients that need to show their ads on such a page when it is found with such keywords.

The above scenario is the most profitable scenario for keyword advertising, in my humble opinion. Of course, you would also make money when a user comes to your page via some different way (that is not with the help of a search engine) and clicks on your ads. The more ads and the page are relevant in context the more you will earn.

Other scenarios would include that there are several web sites linking you properly on the subject of your page and people come from those links. At this time, it is also important how they link and what the linking page is about. If your page is about flowers and it is linked from a web page which is about bees then this would not be as profitable as a related search engine result.

Then how do I go about creating profitable pages on the web? Find something that would help people doing their job in hand. You can write how-to articles about anything you can be sure of yourself. If this helps people than you will gain visibility.

So, keep in mind that what I tell you here is not about being a famous blogger or web author or content creator. This is about being found via search engines and thus getting clicks on your ads because everything is in harmony: search terms, the subject of your article and the advertisers subject. So, being Robert Scoble is something else, it would create a benefit, an added value when somebody reads Scoble writing about a web conference and while reading he or she finds an advertising about what she needs and clicks on it. Because in this scenario, there is fame included. The advertiser know that quite a few people with a need and want to buy a geeky product would read Scoble. See that this is also something contextual but in that case, Scoble does not need search engine visibility. He can also gain page impressions via direct traffic (that is somebody opens her browser and types in his blog’s address). Also, be sure that Scoble made this fame by working hard about blogging. His blog is full of useful information if not knowledge.

These are some key factors that you have to understand if you feel like trying problogging.