Wednesday, 9 August 2006

Colors that make cents (and dollars)

Scene 1: You walk into an elegant formal dining room done up in silk ivory at every turn. Guests attired in tuxedos and evening gowns mill about in the dim, romantic lighting. As you gaze around the room, your eyes are immediately drawn to a guest wearing a bright orange tuxedo and magenta top hat.

Scene 2: You stroll down the trendiest street in a cosmopolitan city, surrounded by flashy billboards and vibrant window displays. Gleaming Italian sports cars roar past you as you head to a nearby 4-star restaurant. Next to this fine dining establishment, you gawk at the small one-story cement building next to it, on top of which looms a 50-foot-tall inflated gorilla, advertising an upcoming used car sale.

Tip: Don't let your ads be the orange tuxedo or the giant inflated gorilla. Their design should be determined with respect to their surroundings (your site) and their viewers -- your site's users.

Blending your ads in with the color scheme of your site decreases ad blindness and in most cases can increase revenue. However, you should always keep in mind how your users will respond, and test what colors your users will respond to. (Sometimes it's okay to stand out a little.)

Take Neopets, for example -- a website for kids to adopt, nurture, and play games with their virtual pets. Chris Davis, the VP of sales for Neopets, used channels and A/B testing to discover that bolder colors which made his ads stand out worked better than blended colors. After making changes to his ads, Chris was able to double both his clickthrough rate and his revenue.

Before:


After:


During this Optimization Month, follow Chris' example and test whether your ad colors are the best ones for your site by using channels and A/B testing. Being smart about your site and your users can yield great results.

Set your site on fire!

On the AdSense team we're always talking about "hot" (good) and "cold" (bad) ad placement. I love this approach and I find myself analyzing my everyday life in the same way.

Just the other day, I had some friends over for dinner and placed the appetizer in a very "cold" place, in particular, a coffee table that my puppy Tori could reach. Needless to say, she wasted no time teaching me a lesson by eating the salmon in one gigantic bite. She was satisfied, and I was down about $20.

The lesson for AdSense is that "cold" ad placement on your pages can cost you, so if you're looking to maximize your earnings, try to place your ads in "hot" places on your site. (This can be hard to figure out because often you're juggling your users' experience and the existing layout of your site.)

The most general tip I can give is that an ad placed above the fold is "hot," and one placed below the fold is "cold." I'm not sure if that rhyme at the end will help you remember this, but I sure hope that it does. Beyond that, you need to start thinking about your site design in order to create the "hottest" ad placement. The first thing you should consider is whether your site is vertically or horizontally organized. If your site is vertically based, you might consider trying to integrate a "blazing" skyscraper on the left hand side of your pages. On the other hand, for more horizontally laid out sites I love seeing a "smoking" leaderboard placed right below the title or the first section of content. Both of these placements fit within our traditional heatmap and should work well on your sites.

The next thing you should consider is placing your ad in the "hottest" spot of them all -- the middle of the page above the fold. Let me qualify this by saying that placing a one of our button or half-banner ad formats in this location just for the sake of having an ad in this middle of the page is not a good idea. In keeping with the vertical vs. horizontal theme, you should look to see if leaderboard, banner or rectangle will fit for you and your users in this location. Other considerations are whether or not the ad itself can be wrapped by your content or if it will function as a divider between two sections of content or navigation.

I hope that the story about Tori the puppy and these examples help you create the hottest site possible. One last note: you'll never know what type of results you can get without experimenting. So start seeing what hot spots your site holds for you.

P.S. No animals were harmed in the writing of this post!

Tuesday, 8 August 2006

For every optimization action, there is a user reaction

You build a site to attract visitors, but the more visitors you get, the more expensive it becomes to maintain the site. So, like many other publishers, you turn to online advertisements for revenue. But if your visitors don't find the ads useful (or worse, find them obtrusive), you could potentially end up losing both users and your revenue stream.

So for this week’s post on placement optimization, we’ll focus on the behavior, and the reaction, of users.

User Behavior

AdSense’s content-matching technology is designed to provide useful links and resources for your site’s visitors -- but they won’t find the links useful if they can’t find them at all!
  1. Take a look at each page on your site and imagine yourself as one of your site's visitors. Would he or she rarely scroll down? If so, be sure to place an ad unit above the fold. If there is plenty of engaging content below the fold, feel free to monetize the space with more ad units.

  2. The typical newbie mistake is to place a leaderboard at the very top of the page. In our tests, however, we’ve found that users’ line of vision typically goes straight to the area below the header. You might find that moving the top leaderboard or banner below your site’s header would most likely result in an increase in CTR.

  3. On that same note, there is a significant difference in having an ad unit directly after your content versus after the footer, the “contact us” link, or a chunk of white space (remember: white spaces don’t make you money!). One publisher who had a border around his articles saw a 300% increase in CTR when he simply moved his ad unit within the border. Similarly with forums, moving a leaderboard from under the footer to directly after the last post typically results in a 200% increase.

  4. And the best tip we have in this category is (you’ve guessed it): an embedded rectangle unit. An ad within an article can serve as a “commercial break” for users who are tired of reading. Not only are CTRs usually in the range of .5%-2%, but they’re also a popular unit for site-targeting campaigns.
Of course, different tips work best for different layouts. For more information, you can refer to our standard heat map, or our heat maps for forums and blogs.

User Reaction

As emphasized previously, you know your visitors best, so we encourage you to be sensitive to their needs and interests.
  1. If the content is generated by your users, e.g. via forums and profile pages, they most likely won't want their content to be interrupted by an ad. Some publishers have established a premium membership plan that removes all ads for paying members, but monetizes all non-premium member pages with ads.

  2. For any dramatic changes in ad placement, you can certainly try making the change to a small percentage of the site to see how your users respond. If your CTR is substantially higher with the new placement, that may be an indication that people are finding the ads useful rather than obtrusive.

  3. Review your page content to see if visitors would prefer to have related links after reading the content. One publisher said, “Text-based ads work especially well in placements where the user expects and wants links that are related to the main content. However, we don’t trick the user and instead experiment rather conservatively – and we concentrate on the things that matter in the end: quality of content, usability and service. If you find the right balance, you will be able to successfully monetize your website with ads while providing a positive user experience to your visitors.”

Monday, 7 August 2006

Optimization Month, Week 2: Designing Your Ads

What if I told you that by making some simple changes to your ads, you could increase your revenue tenfold? And what if I said that by making some small adjustments to where you place the ads, to your colour schemes, and to the type of ads you use, you could even increase your revenue by a factor of 100?

Before you say anything, imagine you're a website owner in the mid-1990s. You own a large web property, and you've decided to increase your revenue stream through online advertising. Advertisers pay you each time their ads show, on a per-thousand basis. You need to place the ads somewhere people will see them. Looking at your site, you think, where? How about along the top, and down the right-hand side? Yes, that's where you've seen them on other sites, so they must be the best places.

Now, let's try that scenario today. You own a large web property, and you've decided to increase your revenue stream through Google AdSense. Advertisers pay you each time their ads show through site targeting, and also on a per-click basis. You need to place the ads somewhere people will see and interact with them. But where?

That's what we'll help you with this week. Did you know placing a traditional banner at the top of your site can be less than ideal for AdSense cost-per-click ads, but great for site-targeted CPM ads? Or that colour schemes designed to make your ads stand out will often make your users ignore those ads. What's more, by having AdSense integrated with quality content, users will stop seeing AdSense ads as advertising, and instead see them as relevant links to something they're interested in.

After having worked on optimisation in AdSense for a long time, we've amassed much learning through test after test. Even more important, we've learned from our failures at least as much as our successes. And now all of this is available to you, our publishers.

So go on. Spend 15 minutes reading this week's posts. Then with the recommendations in mind, spend another 15 minutes making the changes you and your users feel most comfortable with. Here's hoping it'll be the best (and most profitable) 30 minutes you'll have ever spent!

UPDATED with picture

We want to meet YOU!

What better way to start Optimization Month off on the right foot than by having an in-person consultation? We'd like to remind you that the AdSense optimization team will be at SES San Jose on Tuesday, Aug. 8th and Wednesday, Aug. 9th, ready to offer you tips and suggestions on optimizing your site. Got a great success story based on how you've optimized your site? We'd love for you to share it with our video crew, who'll be on hand both days. Whether you're looking to learn more about optimization strategies or tell us your own, be sure to come by the Google booth at SES!

Friday, 4 August 2006

Bryan's Tips for Testing and Tracking Optimization

As mentioned on Tuesday by Mike Gutner, we'll be finishing off this week with the top 3 tips for testing and tracking. This'll be a recurring theme for Optimization Month -- the end of each week will feature top 3 tips from the Optimization team. With that, I'm honored to be able to share 3 tips that I commonly suggest to publishers. It's always rewarding to hear reactions from publishers about how helpful these suggestions are -- it's almost as if I can see a lightbulb go on in their heads..."Ah-HA!"

Over the last few months, we've doubled the number of channels and added several new reporting features. Here are my tips on how to use these channels and features to the fullest:

1. Search, don't scroll: I always encourage publishers to do a lot of testing and to use a lot of channels. At times, though, it can be tedious to scroll through a list of channels (up to 200!) to select the few you want to look at. I recommend using a standardized naming convention that puts as much information as possible into your custom channel names so you can group them by searching. For example, by using longer names like HomeRightWideSkyOpenAir, you can easily search and group the channels by page (in this case, Home), location on the page (Right), ad format (Wide Skyscraper), or color scheme (Open Air).

2. Save time with custom reports: With the advent of custom reports, publishers should rarely need to use the Advanced Reports tab. Instead of taking time to specify the channel(s), date range, and data type every time you want to get a stats update, you can use custom reports to preconfigure those views. This enables you to quickly click through reports directly from the Overview page. The faster you can see your data, the easier it is to test and find patterns that increase performance.

3. Stay in sync with emailable reports: Many publishers have more than one person working on various aspects of their AdSense implementation. But it's common for only one person to have the login information for the AdSense account (and therefore the ability to see stats and performance). With emailable reports you can add everyone to a mailing list and keep the whole team up to date with a daily, weekly, or monthly email about your AdSense earnings.

Stay tuned for Week 2 of Optimization Month-- Designing Your Ads!

Thursday, 3 August 2006

The ABCs of A/B Testing

If you’ve ever wondered how your earnings would change if you swapped a banner ad for a leaderboard or if you changed your color palette to Open Air, now you can find out by using A/B testing. In this brief tutorial, we'll review the fundamentals of completing an A/B test.

Tutorial

Let's say you’ve got a gut feeling that a leaderboard ad would double your revenue compared to a banner. To prove it, you'll need some evidence, so you decide to perform an A/B Test.

First, you'll need to create two custom channels, one for each ad unit you're going to be testing. Then, create a leaderboard ad unit and a banner ad unit with identical settings, except for the ad format. Be sure to assign each ad unit the appropriate channel created above.

You can decide how you want to run your A/B test; for example, you can choose to run the test on only 5% of your traffic or only on your home page. No matter what you choose, you'll need to run both of your ad units at the same time. But how can you easily alternate between your two ad formats? The simplest way to do this is to use the JavaScript template below - it will rotate between the two ad units, showing each 50% of the time.

<script type="text/javascript">
    var random_number = Math.random();
    if (random_number < .5){
        //your first ad unit code goes here
    } else {
        //your second ad unit code goes here
    }
</script>
<script type="text/javascript"     src="http://pagead2.googlesyndication.com/pagead/show_ads.js"></script>

When using this template, remember to replace “//your first ad unit goes here” with your ad code inside the first set of <script></script> tags.

Keep in mind that generally, modifying your ad code is against AdSense program policies. However, we've checked with our policy folks and they've given our publishers permission to modify the code for use with this specific script for the purposes of A/B testing. Please be aware that the AdSense team isn't able to provide any support or troubleshooting help for this script or this sort of testing.

Once you’ve implemented the A/B testing code on your page, you'll be able to view the experiment results in your channel reports and compare the figures from the custom channels you created.

If you notice that one ad configuration clearly performs better over time, you can replace the testing script with the ad code for that ad unit to display it on a permanent basis. Or, update the script to test the performance of that ad unit against another ad configuration.

A few important things to remember when designing and running an A/B test:

1. One of the ad configurations in your test should be the configuration you're currently displaying. In order to understand the effects of each ad configuration, you need to compare the experimental results to a baseline. This baseline, also called the control, should be the ad configuration you are currently using.

2. You should only make one change to the ad configuration in each A/B experiment. The goal of A/B testing is to isolate the revenue impact or CTR change of one particular modification, so that you know exactly which change affected your revenue. By modifying the baseline ad code in only one way, you can be assured of this.

3. For one A/B test, all configurations must be running simultaneously. Since we need to ensure that all ad configurations are subject to the same conditions such as the same traffic patterns, all configurations must be running at the same time. The JavaScript template above is one way of implementing this.

If you’d like to read more about A/B testing, please visit our Help Center .

UPDATED template for accuracy