Shopzilla announced today its updated Smart Pricing cost per click (CPC) rates. The new Smart Pricing, which will affect 11 subcategories, is aimed towards adding more value by aligning CPC charges with traffic quality.

According to Bob Caputo, Shopzilla’s Senior Director of Account Management, the announcement is an expansion of existing Smart Pricing:”You may have seen instances where your average CPC Is less than youtr bid. That’s Smart Pricing in action and this rate restructuring is an expansion of that program.”

Although this is a CPC change which ultimately increases costs for many online merchants, Jamie Ridgley and Bob Caputo from Shopzilla insisted in the email announcement: “By restructuring rates to be more in line with traffic quality your ROI should remain consistent and ultimately improve.”

Here is a look at the subcategory Smart Pricing CPC changes which will which will take affect for the affected subcategories May 15th:

 

Shopzilla Smart Pricing CPC bid increase

Shopzilla's Smart Pricing CPC rates for 11 subcategories

Shopzilla’s Smart Pricing largely resembles Shopping.com’s Value Based Pricing, which was released last year.

Here is a look at the email Shopzilla released to announce the new Smart Pricing:

All CPC traffic is not created equal and your charges shouldn’t be either.  Shopzilla is expanding Smart Pricing to 11 new subcategories to better account for these variations.  Our goal is to improve overall performance by aligning CPC charges with conversion and cost of sale.  Minimum CPC bids will be increasing but this does not mean your average CPC will increase.  Leads will be billed at a rate equivalent to the quality of traffic which means your average CPC should remain comparable to the current level.  Only our best quality traffic will be billed at full rate card.  You should only see an increase in average CPC if your conversion improves.

By restructuring rates to be more in line with traffic quality your ROI should remain consistent and ultimately improve.  This allows you to increase bids with confidence that you will only be charged your max bid for the highest quality traffic.  Here is a list of the Smart Pricing rate changes that can also be viewed by downloading our rate table and a comparison of the new pricing: [see table above]…

All products with active bids in these subcategories will automatically be adjusted to the new minimum rates on May 15, 2012. Should you wish to bid above the new minimum rates you will need to manually adjust your bids. If your current bid is above the new minimum rate it will not be changed.

Shopzilla is committed to work with each account very closely to ensure performance is in line with your expectations and goals.”

If you have any questions or concerns Shopzilla’s newest pricing update, feel free to ask questions in the comments below or contact us. You can also contact Shopzilla’s merchant support or Bob Caputo: [email protected], (310)903.4215.

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