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Is Your AdSense Earning Dropping?

July 1, 2006 by  

Threadwatch.org’s Andy Hagans points us to an interesting post over at The Affiliate Marketing Blog about a trend he noticed across the blogosphere and forum posts talking about their declining AdSense income. The clicks are still coming in at a good pace but the price earned per click has dropped considerably.

However, some publishers may not feel the pinch as much as others, because the decreasing payout is more or less offset by the increase in traffic most publishers are experiencing over time.

For those who have not been fortunate enough to experience an increase in traffic, the only way you can maintain your income level is to build more pages. As your Earning per Click (EPC) continues to decrease, you build more pages to maintain your income level.

Contrary to what the writer may has noticed, I personally experience an increase in my AdSense income over the past few months as I’ve written here.

The reasons are simple; I’ve been creating more pages and been receiving more traffic as a result.

From the article:

I see the adsense game becoming one big circle jerk. The money earned decreases, so you build more pages to maintain your income level. Money decreases, build more. Money decreases, build more until it’s all one continuous flow and you see webmasters at their keyboards 16 hrs a day trying to maintain that ‘easy money’.

I’m exhausted just thinking about it :lol:.

There’s a truth in that statement. Is making money centering around publishing pages and monetizing them with AdSense are becoming less profitable or less attractive than it used to be? Do we need to work harder and harder in order to maintain that ‘easy money’?

Looking from both a publisher and an advertiser point of view, I think it all depends on the niche that you are in. Some niches are growing, some stay flat and some are declining. The market is dynamic and to become successful, one needs to continuously look for new pastures and diversify.

I know some of my websites have consistently maintained a high EPC while some others have been experiencing a decrease in EPC. Once in a while, new advertisers joined in the party and those lower EPC suddenly shot through the roof.

Perhaps this is merely a sign that the market is maturing as more AdWords advertisers are now bidding closer to the real market value of a click.

Or perhaps, it’s because it’s summer in the US when everything moves a little slower over there as everyone spends more time outside the house away from their computer.

Come to think of it, this could be one of reasons for my upsetting experience during the first week of June recently when no single order was received for any of my products. My traffic level stayed the same and AdWords campaigns ran normally but nobody was buying.

After checking everything was running as it should, I waited patiently for a turn around and sure enough, things started to pick up and then returned to normal after that. If there’s a reason why I should reduce my AdWords CPC, that should be it, and this reduction is passed to the AdSense publishers.

The good news is, I don’t think the day of reckoning, the doomsday for AdSense, is around the corner, at least not now.

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6 Comments »

Comment by Paul Tan
2006-07-01 17:30:40

Mine’s dropped about 30% since April, even though clicks have gone up abit.

 
Comment by Sreejith
2006-07-01 18:09:53

Mine has increased. Usually, if you run a blog then it depends a lot on what you have posted lately and the keywords in it. As Google shows keyword relevant ads and pays accordingly.

So, what you post is what you get ;) .

 
Comment by e-tech
2006-07-01 22:05:44

Suprisingly mine is also on the increase,of course i own more than one blog tho :)

 
Comment by Gaman
2006-07-02 00:50:35

Sreejith: That’s a possibility but keep in mind that the one who controls the game is not us, the publishers, but AdWords advertisers. Without them, it does not matter what we post.

Of course the niche you are in will dictate how much your average EPC too so the per post basis will have less influence on your EPC in the long run.

 
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