Google Adsense Algorithm Determines Payout

Google Adsense Algorithm Determines Payout

Does the Google Adsense Algorithm Exist?

Google has many, many algorithms.  They are mind-bogglingly complex, however to maximize revenue, we need to understand them, especially Google’s Adsense algorithm. Let’s avoid the complexity and stay focused because the cash payoff will be substantial for your publication.

Everything Google does is dictated by algorithms, and more recently artificial intelligence driven algorithms.  There are no humans deciding how much you’ll get paid.  Other ad networks you could use aren’t as sophisticated therefore their pricing/payouts will be less volatile.

The idea behind these algorithms is to optimize user experience, prevent fraud and manipulation, and in the case of Google Adsense, to maximize Google’s revenue.  Some experts don’t believe there is an Adsense algorithm, however there almost certainly is.

Yes, an Adsense Algorithm Does Exist

The algorithm has to exist, otherwise they wouldn’t know how much to charge advertisers and how much should be paid to you. The algorithm assesses quality.

Adsense algorithm: a mathematical formula that weights a variety of criteria to arrive at a “smart price” to charge advertisers, of which about 40% will be paid to publishers

There are AdSense algorithms for:

  • assessing the correct price advertisers should pay
  • assessing how much to pay Adsense publishers for active views, engagement, or clicks
  • which types of ads to show based on visitor interests (visitor profiling)
  • determining the quality of the visit to your site
  • content matching, and which ads to show based on your site’s content and your site’s keyword reputation
  • display versus text ad placement selection on your site
  • ad engagements on your site
  • click fraud detection
  • which types and quality of ads to show based on quality/relevance of visitor

When Does Revenue Jump?

Sometimes revenue spikes up because of the algorithm, while other times it’s because visitors are interested and clicking. The Adsense account reporting tool will help discover clues about what might be working.

This graphic from the Adsense account reports shows a period of time when active ad views spiked resulting in more clicks and more revenue for the publisher.   For a short time time, more ads were getting seen and revenue rose.

There may be many more factors in the Adsense algorithm. In fact, we’re not even mentioning programmatic advertising, also driven by algorithms which determine how the “high paying advertisers” inventory gets distributed to the pool of available publishers.

Google does not divulge anything regarding what they call their “secret sauce.”  They simply advise publishers to improve their content.

The Organic Search Database is used to Help with Adsense Calculations

You’re likely familiar with Google’s organic search algorithm. Google says there may be almost 200 factors weighed within it. Those websites that have the right factors rank higher.  In order to finely determine your eCPM or CPC rates, Google needs detailed information about your content quality and whether visitors are finding it useful.

You don’t just get money with Adsense, you have to earn it and you must be an intelligent publisher.

The organic search algorithm not only determines how much Google traffic you’ll get, it’s also used to help Google establish how relevant your content is to the ads they might display.

Just because your page is about ” New York lawyers” which is a very high CPC keyword, does not mean you’ll get a high value click on your page.  Google decides on the price based on a lot of factors, such as keywords they typed,  how long they’ve been immersed in your content, what they did before they arrived on your site, which country they reside in, or which website they came from.

The Adsense Algorithm Can be Frustrating

There are publishers who believe Adsense pays the same on any website, irrespective of user engagement, content quality, visitor histories, and whether that visitor converts to a sale for the advertiser.

You might feel too that your income can only rise with more traffic.  If Google gives you a $1 per click on average, for every 100 visitors, then some believe that’s all you’ll ever earn.

In truth, Adsense pays higher on content that meets their criteria. It’s my job to help you master the Adsense algorithm and raise your CPC, and grow your high quality traffic too.  Be forewarned that Google’s algorithm does routinely change your CPC and overall earnings. It goes up and down like a yo yo without you having done anything.

For instance, when your traffic spikes, your CPC will often plummet, because Google either doesn’t trust the quality of the new visitors, or they believe that overall quality diminishes when traffic rises. Even if your content is good, you might see your CPC fall, even if you get more clicks. After the algorithm sees that your new traffic is good traffic, it will start to raise your CPC rates.

The point of studying the algorithm and website performance is to learn which factors you can manipulate and optimize, and therefore grow your revenue.  While changing ads and layouts helps, there are other factors that will agree with the Adsense algorithm and generate more revenue.

This graphic shows the cost per click or CPC during a period of time. This volatility happens is often beyond your control.

In Adwords advertising campaign management interface, where advertisers bid on keywords, an algorithm determines which ads are placed at the top of the page. You can’t always buy the top position with a top bid for that phrase. Google checks your ad text, and your landing page to determine whether it’s a “good experience” for searchers.

The Algorithm Assesses the User’s Activity

When the visitor is well qualified based on their past surfing behavior and engagement with your content, you may get a high price paid. The highest per click price I ever achieved was $44 for one click. That’s rare.

If visitors click an ad and then bounce back right away, you might not get as high a price. If this happens regularly, then your typical CPC may drop.  If you’re not delivering proven, high converting, motivated customers to the advertiser, why should you get a big payout?

Your content needs to make an impact, built interest, motivate action and create follow through (accelerate them through the conversion funnel). If it does, Google will see the quality of your traffic to the advertiser and you’ll likely see your CPC rates rise. The quality of your content does affect revenue.

Excellent Content + Expert SEO for Maximum Revenue Potential

There’s a lot of things that grow CPC rates and it’s my job to help you build a cohesive website strategy that fulfills as many of Google’s algorithm needs as possible. This isn’t an easy job. The payoff down the road is an independent lifestyle for individual publishers or big revenue gains for larger publishers.

Many publishers don’t optimize their content or Adsense strategy well. That’s when they try to hard with aggressive tactics that annoy visitors. Don’t try harder in this way. If your revenue is suffering, you need to analyze what the issues are and then re-optimize your publication with Adsense (and other ad networks) in mind.

Own a publication/blog that’s got a chance at top notch revenue? Then it’s time to ramp up up your quality, layout, design, SEO, and visitor value proposition, to generate more traffic, visitor engagement, and clickthrough behavior.

That’s why you need me.

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