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Adsense eCPM

reduction eCPM

     
10:16 pm on Feb 10, 2007 (gmt 0)

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Hi

Has anyone else noticed a steady decline in eCPM over the last week or so. No amendments have been made to the Adsense ads on my site, and the site itself has not been modified, but I have suffered a 35% drop in eCPM starting around 1st Feb

Thanks

4:56 am on Feb 11, 2007 (gmt 0)

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Yes... if it weren't for a increase in traffic, I would be earning 50% less....
8:10 am on Feb 11, 2007 (gmt 0)

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Thanks Andrew. Unfortunately (or fortunately depending on how you look at it :-) my traffic has been pretty stable, so with a lower eCPM (impressions and CTR have not changed) I have taken a big hit with Adsense revenue so far this month. Was wondering if it was just affecting me or if it is more widespread.
4:58 am on Feb 14, 2007 (gmt 0)

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Across a myriad of sites, my ecpm has gone down by about 70% from 2 months ago. Decline has been gradual. Tried to clear out my compeitive ad filter and start fresh and ecpm fell even further. I just love these 1 and 2 cent clicks when before it was at least 10-15 cents.

On the other side of things, prices of clicks from adwords has not gone down, so there's a nice chunk in the middle for somebody.

8:16 am on Feb 18, 2007 (gmt 0)

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hmmmmmm...
8:29 am on Feb 18, 2007 (gmt 0)

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For one week now (since last unannounce manitenance) all metrics in a nose dive:

Earnings down 50%
Targeting terrible
Some Channels even stopped serving ads

Bilingual site, no change in traffic.

3:28 pm on Feb 18, 2007 (gmt 0)

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Yes, I'm down significantly when I compare my stats form last year.
4:18 pm on Feb 18, 2007 (gmt 0)

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February has been somewhat sluggish for me, AdSense-wise, and a few days ago I had the lowest AdSense eCPM that I can remember seeing in more than 3-1/2 years with the network.

OTOH, display-ad sales have been a little sluggish, too (compared to 3Q and 4Q 2006), so maybe it's just taking a while for 2007 ad budgets to get approved and spent. Affiliate bookings are extremely strong, so consumer demand isn't lacking.

I do think the "dilution effect" of a growing network (and exponential growth in computer-generated, keyword-driven pages that run AdSense ads) may be putting pressure on average EPCs and eCPMs.

4:38 pm on Feb 18, 2007 (gmt 0)

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"over the last week or so?"

I would say over the last year or so. I have removed AdSense from our main website because the eCPM declined to about 20% from what it used to be. This website is a niche site where we have about 20 regular advertisers. The eCPM got low even though we have 90% same advertisers as a year ago. Yes, same advertisers, same ads, same CTR just the pay for click and eCPM about 20% from a year ago.

I would be OK with this if the price to advertise for our niche would got cheaper. The reality is that it will cost you more than double to advertise for this niche compare to last year.

The math is simple. Example: Letís say last year you paid $1 per click to advertise on AdWords for this niche. Letís say we earned on average $0.60 per click. Year later it will cost you 100% more per click on AdWords (lets say $2 per click) and our average earnings dropped to about 20% compare to last year (Lets say $0.12). So if it cost double to advertise why we do not earn double compare to last year? Based on the example numbers we should be earning $1.20 per click in stead we were earning $0.12 per click.

I wasnít naive and expected the payouts will go down over the time but I did not expect them to get this low this quickly. The bright site about this is that we are able to offer direct advertising to some of the advertisers. We doubled our earnings and they save more than 50% compare to AdWords. So no complains on my side. :-)

4:50 pm on Feb 18, 2007 (gmt 0)

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if it cost double to advertise why we do not earn double compare to last year?

You can only say that if you are the only web site in the niche, it could be that your niche got diluted with other web sites.

[edited by: Hobbs at 4:51 pm (utc) on Feb. 18, 2007]

4:56 pm on Feb 18, 2007 (gmt 0)

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What Hobbs said. Plus, smart pricing could be a factor. Your clicks could be sold to advertisers for less than the nominal bids on those keywords or keyphrases.
7:33 pm on Feb 18, 2007 (gmt 0)

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smart pricing could be a factor.

It is a smart pricing! Very smart pricing! What can be smarter than keeping 90% of the click price :-)

About the website: Out since 1999, PR6, No 1 on Google, Yahoo, MSN for the niche. About 120K uniques per month. 1.5M page views per month. It is a local real estate related website. Something like www.CityNameHomes.com. I personaly know most of the advertisers so I know what they pay to Google or to us.

10:59 pm on Feb 18, 2007 (gmt 0)

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I personaly know most of the advertisers

If know the advertisers why did you decide to give google a piece of the pie in the first place?

1:01 am on Feb 19, 2007 (gmt 0)

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If know the advertisers why did you decide to give google a piece of the pie in the first place?

Why? Because we did not have our own PPC system in place. There was no need for that. We decide it to make one after AdSense took a dive. Now we have our own tracking system for clicks and banners and we are able to offer Pay Per Click text ads and CPM banners directly to our advertisers.

1:07 am on Feb 19, 2007 (gmt 0)

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As per EFV, (I've also a travel-related site) affiliate sales doing extremely well, but Adsense has fallen through the floor. Both the 60 day eCPM and EPC moving averages are down to levels not seen since May 2005, while number of clicks and overall site traffic is at an all-time time (500% up from May 2005). Initially I thought it was the post Xmas drop, but the averages continue to head south...

Frustrating indeed.

We're doing alright shifting to direct leaderboard sales on a CPM basis which we're slowly replacing Adsense with, but it's a shame as the Adsense listings are generally well targetted and offer more options to our readers than a limited range of banners.

<begin ramble>
I understand why Google feels they need to be secretive to a degree, but it would really be useful to have some kind of generic "website-topic centric" regular report from Adsense suggesting why a publisher is seeing the ups and downs -- at least then we'd know if the rise/fall is due to issues within/outside our control.

For instance if I received a report from Google on 1Feb saying someting like the following, I'd feel a lot more comfortable about sitting tight and waiting things out.

"In general, travel websites are seeing a 15% drop in eCPM as Advertising budgets get over their Xmas madness. We expect to see this pick up over the next month or so. Meanwhile we continue to see blended adverts outperforming non-blended ones and travel remains one of the most popular niches for site-targetting."

But as it stands, I don't know if I'm seeing the fall because:
a) It's just an industry trend
b) I have too many adsense listings
c) I have too few adsense listings
d) My listings are too well blended
e) My listings are not well blended enough
f) I have too many affiliate links
g) I don't have enough copy
h) I have too much copy
i) My site was down for 12 hours two weeks ago
j) I own a cat and not a dog...

Webmasterworld is indeed a great resource to try and figure out what is behind some of the rises and falls, but a tad more info from Google would be grand.
<end ramble>

2:57 am on Feb 19, 2007 (gmt 0)

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EPC and eCPM have been steadily declining over the past week. Even before I started experimenting with channels and Analytics.
3:02 am on Feb 19, 2007 (gmt 0)

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Mines been dropping since January

Many others have been complaining about it as well.

Its not isolated. Looks like Google is scraping back its money somehow.

4:19 am on Feb 19, 2007 (gmt 0)

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It's probably simpler than that:

Too many people milking the same cow--and more doing it all the time.

4:33 am on Feb 19, 2007 (gmt 0)

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I don't have a travel related site. I am at record highs since the beginning of the month. Dec/Jan were terrible.

Maybe Google keeps some sort of a cyclical up and down for all sites ..so that no one gets complacent..

They may call it smart pricing/editorial review ..whatever..

6:50 am on Feb 19, 2007 (gmt 0)

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Each time I experience a major drop I notice new fleas displaying via the preview tool and various proxies. And each time I act on it I ecpm is back up within three days or so. This last drop is no exception. It seems though that within the last tree months or so mfa's (biggest players aside) have been cycling more frequently in my niche.
3:54 pm on Feb 19, 2007 (gmt 0)

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Too many people milking the same cow--and more doing it all the time.

Moo-hoo-hoo...Ouch...ouch...ouch... I feel for the cow! Can you guys like, get your hands out from under the cow... the cow's mine.... alllll mine!

Bwah-ha-ha-ha (evil laughter)

;)

8:18 pm on Feb 19, 2007 (gmt 0)

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My ctr/epcm down like 70% since last week also.
8:41 pm on Feb 19, 2007 (gmt 0)

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CRT/eCPM went down by 60% since last week. The same ads, same traffic, but earning went down.... What is wrong with Google?
1:58 am on Feb 20, 2007 (gmt 0)

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sigh...eCPM got cut again yesterday... the cow must surely be hurting.

You know, I wonder if it has anything to do with their change in TOS (allowing other contextual ads like Kontera on the same page with Adsense).

Maybe they were offering their publishers a lifeline by allowing this because they knew they were going to cut eCPM?

2:50 am on Feb 20, 2007 (gmt 0)

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My ecpm has steadily declined over the past year by 50%.
3:17 am on Feb 20, 2007 (gmt 0)

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Maybe they were offering their publishers a lifeline by allowing this because they knew they were going to cut eCPM?

They can't "cut eCPM," because eCPM is the result of two factors: EPC (earnings per click) and CTR (clickthrough rate).

Also, ePCM (or EPC, for that matter) goes up and down from day to day for most publishers, so if you assume that Google cuts your EPC/eCPM on a bad day, logic would suggest that you also credit Google with increasing EPC/eCPM on a good day. To make that scenario even more farfetched, some publishers are reporting increases, so logic would suggest that Google likes those publishers better than it likes you. To me, it makes far more sense to accept the obvious: that AdSense is an auction-based system that responds to supply and demand. (Not just across-the-board supply and demand, but supply and demand for specific keywords in specific geotargeted locations, with smart pricing tossed in as an additional complicating factor.)

People always prefer simple explanations, which is why we're always seeing claims of "Google has cut the payout" in this forum or, in the Google News Forum: "Google is penalizing sites that [use AdSense] [don't use AdSense] [have affiliate links] [have reciprocal links] [use content management systeme] [use HTML flat files] [use CSS] [don't use CSS] [have coding errors] [were created in Microsoft FrontPage] [etc.]"

4:14 am on Feb 20, 2007 (gmt 0)

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People always prefer simple explanations

yeah. I'm a simple guy... I like things simple! Understanding the complexities of Adsense makes my brain hurt.

I keep thinking eCPM stands for extra Cash Plenty Money!

Excuse me while I go play with my (cash) cow...

;)

11:44 am on Feb 20, 2007 (gmt 0)

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Started seeing a downward trend since Nov, Now I'm down about 60%, will give it another month before looking into alternatives. Hey great idea from previous post, if you know the advertiser why give google a cut? So why not contact the advertisers directly it no secret who they are...
12:43 pm on Feb 20, 2007 (gmt 0)

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EFV:
People always prefer simple explanations

Here's a simple explanation, I can directly and without doubt attribute the continued drop in my earnings and clicks and loss of targeting and even no ads suddenly appearing in one of my channels after years of being the best performer.. tie it all to the last unannounced Friday maintenance.

A change in code is what did my earnings in, flat simple and has nothing to do with Google liking my site or hating it, the quality of my content or traffic going up or down, not even smartpricing, Google simply forgot what my site is about and is suddenly serving ads not related, Google's new code ruined of my major channels and lost themselves clicks and earnings too.

1:07 pm on Feb 20, 2007 (gmt 0)

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Yep, down for me. Affiliate sales are up across my network. I have started to remove Adsense from some sites.

You pay peanuts... you get monkeys.

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