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I just read a really interesting series of posts from an advertiser's perspective at SPHINN (Internet Marketing News and Discussion Forums) that related to my previous articles on Traffic Quality. You guessed it, the articles got me thinking again about traffic quality....
My first port of call was Google analytics. It's a great program that allows websites to get all sorts of wonderful statistics and all for no cost. So why is Google giving this away?
Google analytics completes the last piece of information that Google requires to have a complete view of the value path. The value path is all traffic hitting a domain name, Google serves the advertisements, passes the click, sees it hit the advertisers website and now finally Google can count the sales conversions.
Being able to count the sales conversions and estimate the value of sales for each market vertical allows Google to be able to manipulate the traffic so that the advertiser's conversions are just above the quality floor mentioned in a previous article on Quality.
Since Google is able to monitor publisher traffic from a particular source until the conversion point then it is able to do the following:
1. Increase or decrease the traffic from a particular publisher/domain by altering the content of Google Adsense.
2. Determine a quality graph for each publisher/domain. This graph will be determined by the number of times that the same adsense is displayed and the intent of the users that click on it. A simple way of viewing this is determining the average quality of each domain and assigning a percentage.
3. Google can redirect the clicks to whichever advertiser they would prefer to receive them by only displaying particular advertisers at particular times. This will increase or decrease the number of clicks received by an individual advertiser.
4. Via Google Analytics they can determine the success or failure of particular clicks from a particular domain/publisher in converting.
This can be represented in the following manner. If traffic is coming from three different domains (domain1,2 & 3) then the quality scores and clicks for those domains can be mapped out and summed to create a final graph which encompasses the advertiser's quality floor. It's important to note that the average quality needs to be above the quality floor for the advertiser not the specific quality.
Google can now calculate out which domain should send which traffic at which time so that the AVERAGE quality floor is never breached. It's fine to send traffic that is below the quality floor as long as the average conversion rate is still above the AVERAGE quality floor for a particular advertiser.
Now think about it a bit further. Domain2-3.com may send traffic to 1,000 different advertisers and Google will need to track it all. This is just the sort of database number crunching problem that Google is famous for solving.
In the next article I'll tackle a little bit of mathematics and how this all benefits Google's profit.
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