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On my own site, I've found that CPM ads normally appear only on pages that (according to my channel reports) have extremely low eCPMs--e.g., photo-gallery pages. And on the rare occasions that they've been run on my higher-eCPM pages, they've paid extremely well.
Here's another thought: Google gets a share of your ad revenues, so it wouldn't make sense for Google to display lower-paying CPM ads if it could display higher-paying CPC ads. After all, when you earn less, so does Google.
I have reservation on that. Google would earn the best at large instead of optimizing earning for individual site/ page. The best paid ads on your site will keep swap out by Google, that is the current practice given by Google.
After my first post, I changed my best positioned ads to TEXT only and left my other ads in the default TEXT_IMAGE option. Lets see how it works.
I don't know if "image ads" are available as site-targeted ads, but site-targeted CPM text ads have been available ever since site-targeted ads were announced.
out of how much total traffic? if you are putting up half a million page views a day, 2-3k of adsense cpm is pretty trivial.
the next question would be, how many mfa's are you getting?
the rumor is that you can email google and tell 'em to turn off site-targeted ads, but you may want to keep 'em to use as an indicator of when your page value is really low... because it means that you are probably getting mfa's.
Are CPM ads are the cause of low AdSense EPC?
That hasn't been my experience. If anything the more CPM ads running on my site the higher the CPC/EPC seems to be for the regular ads.
I think that's because the two kinds of ads need to compete to get on the page.
But I only have a single adblock on most pages, (plus a single Adlinks block).
so it would be over 10% cpm? i'd be looking hard to see how many mfa's you are getting along with that.
as ken indicated, how many ad blocks per page? cpm with only one ad block on the page is the worst-case scenario, because mfa's come with cpm ads, and it's difficult to fix the problem when there aren't any ad blocks to cut back on.
one thing you could do is put all the mfa's into the filter, and see if that raises the value of the page(aka ad block) enuf to keep the cpm from showing up.
if you have already filled up the filter with mfa's, and you are still getting 10% cpm, start cutting back on ad blocks, or even eliminate all ads on the worst pages... be sure and use channels and urls to monitor the epc on those specific pages, as well as the entire account overall... you need to know what the trigger point is that brings in the low-rent trash.
if it wasn't for mfa's, i'd like to believe that adsense cpm is a good thing, because it should be better than nothing... unless you have an alternate ad program that pays better than adsense cpm, of course.