Shopzilla updates rate card using NEW “Single Rate Smart Pricing”
Shopzilla announced today that beginning on June 18, they will implement a change to their “Smart Pricing” rates that were put in place about a year ago. The “Smart Pricing” model put in place last year was developed to make the CPC rates vary based on the success of each product. While “Smart Pricing” decreased some stores’ average CPC, and improved quality of the products and merchants being displayed, there has been one drawback for the larger retailers and agencies that run the feeds. A simple way to control the bidding. The issue at hand according to Shopzilla, is the range of rates across so many categories, made it very difficult to make bidding changes because all of the rates were so varied.
Shopzilla’s solution, make all the rates the same! The question and fear most people will initially see is the $4.00 rate. Just like the “Smart Pricing” that has been put in place, the new “Single Rate Smart Pricing” will continue to look at the number of conversions, clicks and traffic and create a CPC rate based on that data.
Simply put, if a product was shown 10 times and converted 10 times you would be paying $4.00 per click. If a product was shown 10 times and only converted once, that you should be seeing a CPC closer to $0.40 (This is a very basic example to convey how Smart Pricing works.)
The announcement focuses on the fact that the actual CPCs will be a fraction of the $4.00 minimum bid. Shopzilla states that CPCs will stay in line with average rates as presented in this table from April -May of this year.
If you need more information or have questions about “Single Rate Smart Pricing” and how it may affect your Shopzilla account, please call us at 1-888-277-5429 or fill out our contact form.
We would love to hear what you think about this new pricing model put in place by Shopzilla. Please leave your comments below.