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Reduction in CPC revenue
CPC reduction adsense

 1:39 pm on Sep 3, 2003 (gmt 0)

My mean daily CPC rates had been falling in a good range for 25 days, then dropped suddenly on Friday (29.08.03) last week, and have been underperforming (less than 1/4 of the previous average daily CPC) since then.

Has anyone else seen this?

Does anyone else know how to deal with this? Should I exclude sites which I think have a high CTR but low CPC?

Wish we could get a little more stats (which pages clicks are originating in) and control minimum CPC



 2:04 pm on Sep 3, 2003 (gmt 0)

You're probably just seeing the "calendar effect." As the end of the month approaches, some advertisers will have exhausted their monthly budgets, so bids will drop until the new month arrives and the missing advertisers are bidding again.

I noticed this effect on my site in both July and August. (I had a record day on August 22; my daily revenues then dropped precipitously but shot back up on September 1.)


 5:13 pm on Sep 3, 2003 (gmt 0)

Interestingly, I have the feeling I may have inadvertently affected the CPC (on Adsense) by increasing my budget of small (low) CPC campaigns Adwords program. I am a scrooge when it comes to adwords, relying on high CTR targetted at obscure but relevant searches.

I don't know what others are doing, but I like to take a big (upto 25.0%) portion of the "cake" I earn from Adsense and plough it straight into Adwords - a little like a voluntary GoogleTax. We could call this the "GoogleTax" strategy...

However, I am beginning to feel a little 'dependent' upon this single company as a source of revenue and advertising opportunities. It doesn't make for a good business plan. And as they say, "Never put all your eggs in one basket", although I "never look a gift horse in the mouth", but its important to question "Which comes first, chicken or egg?"

[edited by: jonnyr9 at 6:34 pm (utc) on Sep. 3, 2003]


 5:25 pm on Sep 3, 2003 (gmt 0)

More like 'never put all your eggs in one basket'.


 5:53 pm on Sep 3, 2003 (gmt 0)

But... there are more baskets?

Or even... there are more eggs?


 6:31 pm on Sep 3, 2003 (gmt 0)

I don't know what others are doing, but I like to take a big (upto 25.0%) portion of the "cake" I earn from Adsense and plough it straight into Adwords - a little like a voluntary GoogleTax. We could call this the "GoogleTax" strategy...

I can see how that might work for an e-commerce site, but I doubt if it's a viable approach for most content sites (except possibly to generate traffic on a handful of high-revenue affiliate pages).


 6:59 pm on Sep 3, 2003 (gmt 0)

I noticed this effect on my site in both July and August. (I had a record day on August 22; my daily revenues then dropped precipitously but shot back up on September 1.)

EFV, didn't you comment previously that 8/22 was the day you experimented with leaderboards? If so, I think that may account for your record day rather than advertisers' budgets.

I switched over to leaderboards from banners late at night on 8/20, as soon as they became available, and 8/22 was my second best day. I've seen a steady decline in EPC starting a few days later and so far in September, it's lower than it ever was in August.


 3:59 am on Sep 4, 2003 (gmt 0)

EFV, didn't you comment previously that 8/22 was the day you experimented with leaderboards? If so, I think that may account for your record day rather than advertisers' budgets.

I don't think that was the day. If it had been, I wouldn't have switched back to skyscrapers. :-)

In any case, my daily earnings were quite strong until the last week or so of August, and they shot up again on September 1, so it isn't unreasonable to hypothesize that advertisers' budgets may have had something to do with the pattern. (Actually, my numbers started climbing late on August 31, because I get a lot of traffic from Europe, which is 8 or 9 hours ahead of Google time in California).


 9:56 am on Sep 4, 2003 (gmt 0)

I'm sure the advertisers budget has got a lot to do with the end of month slump, but what what about the buyers too... lots of people just dont spend (or even look to spend) money in the week before payday! The when they get their pay cheques in they go all click happy again :)

<added> oops just realised that this would affect the click numbers and not the CPC - doh!</added>


 1:08 am on Sep 5, 2003 (gmt 0)

on a side note (probably irrelevant to this thread but i don't care) my CTR is steadily dropping. anyone else experiencing this?


 8:23 am on Sep 6, 2003 (gmt 0)

I'm experiencing exactly the same.....revenue on the way down while number of impressions have considerably increased (i've considerably increased the amount of pages the code is on).
Also, ads do not show up all the time......approx 8-10 hours per day. The system does not deliver ads most of the day...

Anyone else experiencing blank ads most of the day?


 8:42 am on Sep 6, 2003 (gmt 0)

Hi Max-M... No, I have not experienced what you describe. I 'live' on my site all my waking hours.... I can only recall one instance where the google ads failed to display. I am finding that my revenue is 'slowly' ticking upwards, although I certainly face a problem with weekend slowdowns. After nearly 30 days with adsence I can say that my CTR vs. EPC is consistant.... BUT I wish everday was like Tuesday, September 2, 2003! (When adsense smiled upon me with glorious delight!)


 12:37 am on Sep 7, 2003 (gmt 0)

I have seen an 85% drop in CPC since september 2nd, and everyday after was still about an 85% drop then any day in august. I have been seeing most of the same ads though, so I have no idea what is happening. Hopefully this isent for good.... 85% is alot.


 1:55 pm on Sep 9, 2003 (gmt 0)

I've seen a serious drop in CPC since joining on July 10th.

Since the TOS forbids revealing actuals, I'll refer to my July CPC as 100%. August CPC was 75%. Eight days of September are running 45%. On a daily basis, my site gets thousands of Adsense impressions and dozens of Clicks, so these results are not blips based on just a few clicks.

Others experiences over the past few months?


 2:07 pm on Sep 9, 2003 (gmt 0)

I have tracked my stats by month since I joined Adsense on July 20th. What I am seeing is that CPC is down by 30%, impressions are up by 20%, but CTR has increased just under 1% a month. Bottom line is earnings have increased overall. Hope this continues :)


 2:14 pm on Sep 9, 2003 (gmt 0)

My CPC dtrippled after addign another, more focused site.



 3:41 pm on Sep 10, 2003 (gmt 0)

My CPC has been on a trend downward since the beginning, while my CTR, impressions, etc have all gone up.

Yesterday and today, my CPC has dropped to less than half of what it was the day before. Ouch.

I wonder if Google is slowly decreasing the percentages it offers us?

I wish they'd at least give us stats by domain. :-)

[edit to say "My CPC" instead of "CPC" so as not to imply that I was speaking for anyone other than myself. :-)]


 4:59 pm on Sep 10, 2003 (gmt 0)

someone at the amazon board e-mailed google about possible revenue reduction....google replied that they hadn't touched the percentage we get. so that is that theory bashed on the head...


 5:17 pm on Sep 10, 2003 (gmt 0)

I've been reading some of the posts on the adwords board and I'm thinking that the lower cpc is from adword advertisers bailing out of the adsense program. Remember that the default option is to have your advertisement show on adwords and adsense and you have to specifically choose not to participate in adsense. I have to think that since the moment this went live the number of adsense advertisers has been steadily decreasing as adword advertisers disable the adsense option. This would then bring down the adsense cpc as the competition decreases.


 5:18 pm on Sep 10, 2003 (gmt 0)

Maybe adwords advertisers who have gained more experience over time with the adwords/adsense programs are simply becoming more discriminating in their keyword selection/bids etc in an effort to raise ROI.

Maybe some advertisers have not gotten the results they hoped and simply dropped out, reducing bid competition.

This could explain why many adsensers are complaining of reduced CPC. Those who have not seen lower CPC may be in more profitable areas, more competitive areas, or the advertisers simply have not yet wised up.

I think we have to take Google at its word that it has not changed payout policies, and look at the advertisers side of the equation and how widepread changes/refinements to advertising strategies can effect websites in a measurable way.


 5:20 pm on Sep 10, 2003 (gmt 0)

JustaGeek, great minds think alike. I think you posted while i was writing mine!


 5:21 pm on Sep 10, 2003 (gmt 0)

Right back at ya kittykat :-)


 6:06 pm on Sep 10, 2003 (gmt 0)


1) More and more sites are showing Adsense.

2) Advertisers come and go depending on their maximum spend (among other things).

These factors will work together to give more exposure to lower bidders. Ergo, downward pressure on average CPC.

That's my theory, anyhow!

West of Willamette

 6:15 pm on Sep 10, 2003 (gmt 0)

Last 2 days...

Impressions up about 15-20%.

Click-thru % down about 15-20%.

Revenue--close to normal.

Seems to be much ado about nothing (knock on wood). I could almost think that Google might have slightly altered how they calculate their stats instead of inferring a broad trend as some of y'all are.

Silver Surfer

 6:27 pm on Sep 10, 2003 (gmt 0)

Fluctuations and drops in CPC is normal. Most of us will experience this as certain advertisers come and go. I don't think Google is adjusting the revenue share on an ongoing basis.



 8:36 pm on Sep 10, 2003 (gmt 0)

My click-thru rate has dropped substantially... about 35%. Impressions are up considerably. CPC down about 10-20% ...

What does this mean? Perhaps a lot of new pages are being hit these days and they have the public announcemnt ads instead of money-makers.

God! I wish google would give us the option to enter a default ad to display. It is to give donations to these companies, but I'd rather have the money come to me (I can go donate it myself).


 4:40 pm on Sep 12, 2003 (gmt 0)

Over the last 2 days, my impressions and total clicks are about the same, but revenue is down by 70% compared to my previous lowest day for the month.

Maybe Sept 11 was a bad-ad day, but the reduction seems awfully high to be just due to a few advertisers changing their bids.

On the other hand, my site gets a fair number of impressions. I suppose it's possible that one or more advertisers who were getting clicks on my site decided to block Adsense ads from their campaigns, but if others are seeing big dips in revenue too, it makes me wonder what's really happening.

It's times like this when better reporting from Google would be especially helpful. It's going to be difficult for me to stay with a program that doesn't have a more stable revenue stream (or at least reasonable explanations for big variations).

Of course I'm hoping that the dip is temporary, but when the change is so large and so sudden, it's certainly unsettling.


 4:55 pm on Sep 12, 2003 (gmt 0)

FWIW, saw the same huge drop in EPC yesterday (9/11) and so far this morning. Looks like one of the major advertisers in my space has dropped out of content targeting though... hopefully not permanently...



 10:20 pm on Sep 12, 2003 (gmt 0)

I know eBay used to be a big advertiser for my keywords, and I haven't seen any ads from them lately.

Has anyone else seen a disappearance of eBay ads?


 4:34 am on Sep 13, 2003 (gmt 0)

My theory,

Looks to me like google are keeping for themselves the high paying advertisers. They are distributing them to adsense publishers only when search volumes on the google network are low (I read somewhere that search volumes DO fluctuate considerably). So I think that the drop in CPC and click revenue to publishers coincides with search volumes on the google network. This might also explain the reason for ads not displaying most of the day or a sudden few hours of only unpaid ads.

I donít think we are seeing adsense advertisers bailing out. Exactly the opposite, much more advertisers are getting in. Donít forget that much more publishers are coming in as well.

All in all my average daily revenue is decreasing slowly with the odd 10% spike on some days. Viewers volumes unchanged.

This 33 message thread spans 2 pages: 33 ( [1] 2 > >
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