Tuesday, December 06, 2005

Smart

I sometimes get the feeling, when pondering Google's inner workings, that the people there are so smart, their service sometimes seems like magic to us peasants.

They clearly seem to have the notion of "simple yet functional" down to a science. And functional is a tremendous understatement. They are the Ghooda.

I did some upgrades to my lyrics website last week, including 10,000 new song titles. Also, since my visitor volume has been up (about 150,000 page views in November), I decided to re-evaluate my advertising.

I looked at Google's AdSense optimization tips which suggested that my ad clickthrough rate might go up if I put my Google text ads across the top of my content (aka Leaderboard ad) rather than down the right side (aka Skyscraper ad). I figure they must have done plenty of research, so why not take their advice.

After a week using the new configuration, I noticed an unexpected trend. My clickthrough rate actually went down a tiny bit, but my earnings per impression went up by about 50%. What this means is that fewer people actually click through the ad links on the website. But the ads they click on tend to have a higher pay rate.

My conclusion from this is, although it is a bit early to conclude anything, is that Google actually rewards me for taking their placement advice by sending me more lucrative ad links. More likely is that they are ensuring they get the best possible clickthrough rates (due to placement) on the highest paying ad inventory, thus making more money for themselves.

Google tends to be very mysterious about their logic and policies on these matters, but at every turn, they always seem to be doing the smartest possible thing.

My advice: Always do what Google tells you to do.

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