How to Make More Money from AdSense with Fewer Ad Units
July 9, 2007 by Gaman
You may have noticed that I’ve removed two AdSense ad units from Sabahan.com since 4 July 2007. These are the medium rectangle 300×250 which appeared on the main page, and the banner 468×60 shown below each post.
I did this to see if I could make more money from AdSense by showing fewer ad units.
The premise is that with less ad inventory available on your site, the competition among advertisers is fiercer. So if you only show 4 ads in an ad unit, the AdSense system will target the highest paying ads to the ad unit and shows them first, working down through the auction results to fill in the rest of you ad units in order.
On the other hand, showing more ad units allows lower-bidding advertisers to appear on your site. This will effectively reduce your CPC, (or CPM for a site targeted ad units).
I’ve been tracking my result for the past few days and noticed an obvious increased in my AdSense income after I made the changes.
However, this trick might not work especially if you have a low traffic site. In such case, placing more ad units may make more sense.
Sure, you will earn less per click and your effective CPM will drop, but your overall revenue could potentially be higher. This is because the more ad units you have the better chance for someone to click on any of those ads.
That said, the best thing for you to do is to experiment with the number of ad unit that make you the most money because more ad units don’t always translate to more money.
Keep in mind that no matter how many ad units are shown, the system will work out and only show the highest paying ads. So you pocket more money at the end of the day even with lower overall CPC or eCPM.
Showing fewer ad units in order to make more also work best if someone is targeting your site. Advertisers competing for less ad inventory should drive up the prices. You can find out if advertisers are targeting your site by following the steps here.
How to Determine Which Ad Unit to Turn Off?
Easy, if you are tracking your ad units using channels that is. Just remove those that do not perform well.
Instead of turning off certain ad units and giving up that inventory permanently, you could replace them with ads from other company. As you can see below this post, I’ve replaced the AdSense banner with another banner ad from AdBrite.
Regardless of whether you choose to display fewer or more ad units, I highly recommend you to optimize your AdSense placement.