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• ---- My google adsense earnings are down the drain.

LifeinAsia - 11:57 pm on May 10, 2007 (gmt 0)

 I am not not clear why, if you have more advertisers, you don't stand a chance of more clicks. Am I missing something here?

Yes- the logic behind it. Let's look at an example.

Keep the same numbers as before- 20 advertisers paying an average of \$.50/click. Let's say you have a page that display 5 ads. From that page, you generate an average of 100 clicks/day. So you make \$50/day.

Fast forward- now there are 40 advertisers paying an average of \$.40/click. You still have 1 page that displays 5 ads. So chances are you are still going to generate 100 clicks/day. But now you are averaging \$40/day.

Why? Because you're still showing 5 ads/page. Instead of 20 advertisers competing for those 5 ads, you have 40 advertisers competing for the same 5 ads. But still, only 5 ads are showing on that page. The number of ads doesn't change even if there are 50 advertisers, or 500, or 5,000.

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