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Google fined 185.5 million dollars (130 million pounds)...

Discussion in 'Black Hat SEO' started by Jack Torrance, Jan 24, 2016.

  1. Jack Torrance

    Jack Torrance Power Member

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    http://news.sky.com/story/1628088/googles-130m-deal-with-taxman-derisory

    Can we expect a backlash?

    AdSense CPC has dropped off the charts. I think Google uses "smart pricing" as an excuse to scam its publishers. I'm pretty positive they know what your RPM is going to be before the day happens... When my CTR increases a little my CPC mysteriously drops a little to compensate. I've used AdSense as my #1 income for over 2 years now and it's an almost unmistakable correlation. Had a great RPM today? Expect a low earning day tomorrow to compensate for your good fortune on that day. All the time almost without fail over the years I have used it. I do think this is an unscrupulous company that hides behind a facade of supposed morals, as do almost all of the employees and not just the company as a whole. When employees discuss their algos etc. they're almost always trying to make out like its some saintly entity that "punishes the spammers", but then wipes the f*ck out of random white hat sites too as collateral damage.
     
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  2. Enryu

    Enryu Junior Member

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    You may be absolutely right. But we can't discount the fact that perhaps you've gone right out of your mind, Jack.
     
  3. asap1

    asap1 BANNED BANNED

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    This will never stop, EVERY network that pays someone fixes the numbers, from clickbank to every CPA network you can think of. Why? Because its so easy. They have complete control of what they show you. You never know if the person converted only the network. And if this case with google you never know how many clicks you really get or how much someone paid for that click.

    And with a company like Google a slight increase of any percent will be huge with the amount of money they make.

    It wouldn't make sense to NOT fix the numbers from a business standpoint, and at the end of the day everything is about business.
     
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  4. Bionaire

    Bionaire Junior Member

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    That wasn't a fine, it was a 'deal.' Perhaps they should have paid their taxes to begin with. They've still been let of lightly, too. If you're concerned about this, you should be more concerned about how much mainland European countries are demanding from Google for tax evasion.

    Somehow, I don't think this is going to affect CPC pricing. It strikes me as being a little irrational to think otherwise.
     
  5. Ricky.Montana

    Ricky.Montana Regular Member

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    How about No transaction for January... For me, the january is No Transaction, but I real made some bucks there. Is anybody in this situation?
     
  6. Jack Torrance

    Jack Torrance Power Member

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    Yeah... Personally I feel like they wouldn't lie about the number of clicks like many CPA companies do. But I think their introduction of Smart Pricing was to give them an excuse to basically accomplish the same goal of clipping your earnings in a "moral" way. Maybe they rationalize it as CTR rises being "unnatural" and therefore worthy of "smart pricing".

    Blue is CPC, purple is CTR. Notice the correlation.

    4731692d8cc0a13e141cec1094e1843b.jpg

    (Re-organized by Weekly view to make it clearer). CPC tends to peak while CTR valleys and vice versa.
     

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    Last edited: Jan 24, 2016
  7. ChanzGrande

    ChanzGrande Elite Member

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    I don't think you've drawn reasonable conclusion based on the data in evidence.

    Were it a widgets based business and happening in an open market the laws of economics dictate that as your CPC rises your CTR(a very direct measure of CLICKS/PURCHASES/REVENUEMETRIC) would decline. Price rises and sales go down in a purely economic environment. You think it's the smart pricing doing this, which is likely possibly true but it likely leads to direct revenue increases to your bottom line, and you should be glad they do it to cut down on the real spammers. Sure the algo may hit you from time to time when your metrics appear "unusual." In real business - competitors crop up and hit you with the same thing if your profits appear "large," so I don't think you can draw the conclusions you have. These metrics tend to be inverse quite often in my opinion.
     
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  8. Jack Torrance

    Jack Torrance Power Member

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    Well I really hadn't thought of that... Though firstly some of the rises in CTR are due to experimenting with new ad placement positions. Also from what I can see in the review center none of the ads have the price on them so people would have to click on the ad to even know what the price is.
     
  9. ThinkAndGrowRich

    ThinkAndGrowRich Junior Member

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    This is because of quality score. Google charges advertisers higher cost per click if their CTR is lower than the competitors. Conversely, if your CTR is great, Google Adwords rewards advertisers with a higher ad position, more impressions and lower cpc.

    quality score is one of the most revolutionary innovations in ppc advertising.
     
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  10. Jack Torrance

    Jack Torrance Power Member

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    You mean the CTR of the advertisers rather than the publishers? Well I guess that could explain things.
     
  11. SejtanovRatnik

    SejtanovRatnik Regular Member

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    We can't do anything about it. They can do what ever they want, because we don't have any REAL alternative for Adsense!
     
  12. tony_d

    tony_d Elite Member

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    I don't buy into the 'Google is scamming me' story.

    Don't forget they run a three way market place - or, in the case of AdSense, a FOUR way market place.

    They are clever enough to know that they need to strike the right balance between the interests of;
    1) the advertiser
    2) the user
    3) Google
    4) the publisher, in case of AdSense.

    If I recall correctly, they get a pretty large chunk of their revenue from the AdSense program.

    It's just nonsensical to suggest that they're out there screwing people.

    I accept that RPM fluctuates wildly - but that's a representation of value shifting in that 4-way market. You can expect to get paid only in proportion to the value that you bring to the table.
     
  13. hudsonhicks

    hudsonhicks Junior Member

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    No surprise there..

    This country is a joke when it comes to big corporations robbing us blind from tax revenue..

    Im sure i read Starbucks pays next to fck all in tax
     
  14. KevinRB

    KevinRB Junior Member

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    simple logic would dictate that ANY company that illegally avoids paying tax would not be adverse to a little light "skimming"....don't be evil!

     
  15. ThopHayt

    ThopHayt Jr. VIP Jr. VIP Premium Member

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    Regardless of if they mess with smart bidding methods, letting Google dictate your bids is NOT how I was taught to make money in PPC.
     
  16. manking

    manking Regular Member

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    Doubt anything will happen, it's like pocketmoney to google
     
  17. ThinkAndGrowRich

    ThinkAndGrowRich Junior Member

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    yes CTR of the advertisers. (which in fact equals the ctr of the publishers as well)

    This video gives a great explanation of quality score.

    Essentially, Google has created a system where advertisers are compelled to create high quality, creative ads to grab attention and generate high click through rate. These advertisers are rewarded with a lower cpc. At the same time consumers see relevant and useful ads so they are not turned off by ads. And off course Google is happy because a higher percentage of ad impressions get clicks and earn revenue. It is an amazing innovation from Google's standpoint and one reason why future of SEO is bleak.

    Ads will continue to get better over time because there is a very high incentive for advertisers to improve CTR and therefore paid ads get more clicks than organic listings for searches with commercial intent. Consumers dont mind clicking on these ads because they are relevant and useful to their search query.
     
  18. V

    V Elite Member

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    We can do nothing about it even if they are scamming. They will do anything to maximize their revenue without letting you know about it, they do it because they can. Every network shaves. I don't know if Google shaves or not, but even if I knew I couldn't do anything about it. :p