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Stable CPC Earnings reduced 50% over night -Why?

CPC Earnings reduced 50% over night -Why?

         

dba2003

12:17 am on May 20, 2006 (gmt 0)

10+ Year Member



Would any one know why the earnings (CPC commission) of stable approx 5,000 adsense clicks per day have been suddenly reduced to 50% over night?

Any light on this subject is highly appreciated, thanks.

cornwall

11:45 am on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Smart Pricing?

drall

1:08 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Either you had a couple large advertisers decide to pull out of your keywords or block your site or it was smartpricing.

OptiRex

1:14 pm on May 20, 2006 (gmt 0)



have been suddenly reduced to 50% over night?

My niche has nearly always done this anywhere between a 25-50% reduction.

The only explanation we've ever come up with is advertisers' daily budgets expiring.

Our general rule of thumb in that for the last 33% of the day we have 20-25% of the day's earnings.

I hope that helps and you realise you are not alone.

Green_Grass

1:16 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



So what is new...

Green_Grass

1:17 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Stable earnings?

This is impossible with adsense..

This is a roller coaster..

Sweet Cognac

1:20 pm on May 20, 2006 (gmt 0)

10+ Year Member



We had a couple of large advertisiers decide to turn the "content" network off.

ann

1:30 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My clicks started downhill around Dec and finally landed at half or less.

I am wondering, if for some reason, Google is filtering clicks from certain areas.

I am hanging on hoping this is a seasonal thing and will correct itself around June or July. Tweaking, moving ads around, etc didn't help at all. I do some little something and it starts back up then whoops! Oh well...Patience is virtue.

Ann

ronburk

1:41 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Would any one know why

Why on earth do people expect advertisers to pay exactly the same day in and day out?

In the paper magazine business, advertisers only get to make a decision about whether to advertise once per month (actually, the more common minimum contract is 3 months). It's not the least uncommon for a magazine to see a 50% drop in advertising revenue from one month to the next.

With AdSense, advertisers can decide about whether to advertise from one minute to the next. And yet, publishers often seem to expect to see more revenue stability than paper magazines have ever seen.

This is a feature of what I call AdSense Blinders. Google insulates publishers from advertisers, so publishers start to believe that they are just getting a royalty from Google for having wonderful content. They actually get upset at Google(!) when their revenue declines, and give not one whit of thought to the people who actually supply that money (advertisers).

Do you disagree that you suffer from a bad case of AdSense Blinders? Quick -- list your top 5 advertisers in terms of revenue, and what month each of them started advertising on your site. That's information no self-respecting paper magazine would be without, but I bet every "my revenue went down" OP can't even name their top advertiser, let alone their top 5.

The CPC model makes volatility even worse. It's entirely possible to have a single advertiser paying 10 times more per click than your average advertiser. That means just a little variability in the behavior of that advertiser (or the behavior of visitors towards their ads, such as when the advertiser tests new ad copy -- or Google tests new ad copy for them) can drastically affect your overall revenue.

Even large sites with lots of advertisers and visitors tend to underestimate how much volatility is still entirely normal. The AdWords API lets savvy advertisers shift dollars in real time, programmatically. Ever wonder why, when the stock market starts acting crazy they turn off the folks who have computers making trades for them? The AdWords API makes possible even more volatility for AdSense publishers, not less.

I anxiously await the day when we start seeing threads like "my revenue has been 85% stable every day this week -- this is incredibly weird!"

dba2003

1:54 pm on May 20, 2006 (gmt 0)

10+ Year Member



I am grateful for your constructive feedback. Even if I am involved with an operation with many adsense clicks my personal experience from Adsense is somewhat limited. I gather so much as to appreciate that it is normal that earnings will vary due to a number of reasons, some times as much as up to ... 50% as in our case. The smart pricing does not make it easier either.

Hobbs

3:00 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



so publishers start to believe that they are just getting a royalty from Google for having wonderful content

are you sure you are not euoropeforvisitors?
where has he disappeared to btw?

Ok, agree on the blinders, instability, unreasonable expectations ..

But the most common misconception I found here is that people after a while treat Google as the advertiser, publisher, marketer .. and forget that they (themselves) are the owners of content and that Google is a commissioned agent - A large one at that - for a small percentage rumored to be 25%. You own the goods, they sell it not the other way around, let me repeat, you own it, they are the best sales man in town that works for you or on your behalf.

OptiRex

3:17 pm on May 20, 2006 (gmt 0)



You own the goods, they sell it not the other way around, let me repeat, you own it, they are the best sales man in town that works for you or on your behalf.

Well said, this is very true however there is one undeniable down side, if they don't like one's goods then one had better find another route to market a.s.a.p. since, as sure as anything possibly can be, they won't be promoting you!

hyperkik

3:20 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It isn't really the case that Google is a commissioned agent - they're a broker. If it were my agent, I would expect it to find the most valuable advertisers for my site, and to maximize my earnings. Instead it tries to find the most valuable advertisers for its entire network, and to maximize its own earnings across the entire network.

Hobbs

3:48 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



if it were my agent, I would expect it to find the most valuable advertisers for my site

Haven't you heard it repeatedly that Google selects the best performing ads to display on your pages..

I may agree it is not always happening, but this is their exact claim.

Anyway, agent or broker does not matter much a long as people remember who's boss.
Google of course ;-)

OptiRex

4:06 pm on May 20, 2006 (gmt 0)



Anyway, agent or broker does not matter much

A broker tries to obtain a specific product at the maximum discount...minimmal effort, minimal service, usually lacking in-depth product knowledge.

An agent ought to, whether direct or independent, try to sell it at the highest possible price with the minimum discount...most effort, maximum personal service and should be proficient in product knowledge etc:-)

It's all in the art of selling, of course Google is going to try and sell at the highest possible price since their commission received will be proportionately higher, lower value clicks are as unsatisfactory to them as they are to we publishers or any other producer/manufacturer.

hyperkik

4:51 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Haven't you heard it repeatedly that Google selects the best performing ads to display on your pages.

You say Google makes that claim? Where? If you mean in their algorithmic effort to choose between contextual ads and targeted ads, sure, they indicate that their goal is to serve the best performing ads. That's something entirely different than promising to favor one publisher's website over the rest of the network.

Play_Bach

4:57 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



> This is a roller coaster..

and apparently one without seatbelts too

Hobbs

5:18 pm on May 20, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



..algorithmic effort to choose between contextual ads and targeted ads, sure..

not only that but within contextual space ads compete for each location and the most likely to generate more revenue wins the spot.

..favor one publisher's website over the rest of the network

now that's the claim that needs proof.