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contextual versus interest-based versus placement targeting

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contextual versus interest-based versus placement targeting luman 12/8/11 1:29 AM
Hi,

i've been monitoring these 3 types from the begining of 2011 (milions of ads views and the results are quite disturbing)

Can someone tell why how is it possible that

contextual has the highest RPM ?

I thought that interest-based and especially placement targeting ads should have much higher rpm-s. (so the email to opt or provide such spaces from google team encouraged ...)

How is it possible that plc targeting has lower rpm that context one's? Shouldn't the algo optimize and not put such ads on my site because they have very low ctr and even much higher cpc results in low RPM

The same with interest-based, the also tend to be less revenueing than context.

So can i assume that if i'd turned them off i'd get beeter rpm (essentially not loose money)?

My data is based on +100 milion ad requests...

p.s. sorry for my english (not native language)

Regards
Jakub
Re: contextual versus interest-based versus placement targeting splatcat 12/8/11 5:07 AM
I can only give you my personal thoughts I'm afraid, you may get more statistical answers from others.

Don't like and have never liked interest based advertising. For the majority of time it is running  it is reacting to a situation which is finished. I search for a buy item "a"... its done with... I've bought it... but for the next month I will be bombarded with ads for item "a" even when I'm on a site looking at item "b" which is what I'm interested in now. The real interested based adverts are the one which are contexual to the content I am looking at now!
Re: contextual versus interest-based versus placement targeting horeco 2/24/12 4:50 AM
If an user choose interest based ads, he will see the same ad thousands of times and will get up fed up of it. If yesterday I looked for shoes, and today I look for photography, I don't want see today shoes advertisments.
Re: contextual versus interest-based versus placement targeting Engineer Guillaume 2/24/12 6:11 PM
Hi,

Some key facts to take into account:

1) AdSense algorithms are optimized to get you the highest earnings. Specifically, they aim at maximizing RPM, so considerations about CTR or CPC are somewhat irrelevant. Also, there is no infinite supply of high-RPM ads: if a category of ad requests has a lower RPM, it's because AdSense didn't find anything better.

2) Targeting type is a per-individual ad impression criteria, not per-ad request. When a single ad unit shows several ads at once, the corresponding ad request is attributed to the targeting type of the first ad to show. The targeting types of the other ads are ignored. This may have an effect on the statistics. In your case, switching to the "Individual ad impressions" metric family completely changes the numbers; in particular, interest based ads have an Ad RPM much higher than contextual ads.

3) Due to how the auction works, disabling a category of ads can only but reduce your earnings. I would suggest not blocking anything unless you don't like a category of ads and are ready to suffer a decrease of earnings. Even in the situation where interest based ads have a lower RPM than contextual ads, disabling the former will reduce the number of ads competing for your inventory, therefore decrease your earnings. Indeed, ads even cheaper than the interest based ads would be served instead of them. See [1] for details (the article is about ad networks, but the principle is the same for targeting type).