Smart Pricing?

[PSU4Life]

Adwords Keyword tool shows $5 as the est. cpc but I just got a click for .45. I only use 1 Adsense add for the site and it shows the same add that corresponds to the #1 spot on Google search paid results. I know companies pay less for Adsense than for Adwords. But I figured I'd get at least $1 a click, especially since it's showing the #1 Adwords ad. There's a lot of competetion in this industry and multiple companys are bidding around $5 a click.

Is this an example of smart pricing?

 

[mason]

estimated keywords from the tool is WRONG btw. $.45 sounds about right. If you were smart priced you would get like .01 payouts.

 

[micfire]

I'm too lazy to check myself, but doesn't Adwords Keyword Tool only show the search part? I mean the advertiser can bid different prices to content ads than search ads. And that's why arbi doesn't pay as good as it did 1,5 years ago. Personally I don't even advertise in content ads, and I know I'm not alone in this. Also, you need to realize that CPC you see is only 1st position advertiser's max bid. If advertiser is getting 25% CTR, he is not paying his max bid, not even close and still he's number one. When he's not paying max bid, you are getting less money.