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I'm convinced there IS an earnings cap

         

andrewshim

3:08 am on Mar 4, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



In August 2006, I moved up the serps to page #1 for a main key phrase. Traffic went up and eCPM rose to a high $3x.xx, then it was cut down to mid $1x.xx the following month.

January, I moved to page #1 for the most competitive key phrase in my category. Traffic up again and eCPM fell to $x.xx the next month.

Once may be a co-incidence. Twice, I'm convinced Google has decided I am to earn $$$.xx per month for this site and nothing more.

Just my personal observation. Care to add your view to my stew?

andrewshim

1:57 pm on Mar 6, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



fearlessrick, you've put it more eloquently than me. What you said is what I mean. I am now climbing up the serps for my main key phrase which is the most competitive in my niche and it scares the heck out of me. It took 2 years to get where I am and yet, each time I saw a breakthrough and climbed the serps, it has only triggered a lowering of eCPM.

I really respect all you guys here even if you don't subsribe to the glass ceiling theory... but to me... my glass ceiling is REAL.

Fuzzyfish1000

10:58 pm on Mar 6, 2007 (gmt 0)

10+ Year Member



I tabled this idea a month or so back, and was similarly boo'ed down. I usually earn over $250 / day, but it doesn't follow my traffic anything like as much as I'd expect. My site has been established over 10 years, and I've been running adsense on it for about 3.

It makes perfect sense that there is a glass ceiling, or earnings cap. AdWords budgets are frequently meted out over a month, or a set period, with even distribution of ads - ie, the same amount of ads are served per day, for the same amount of money. If for some reason, a site spikes in traffic, above it's average daily traffic, it wouldn't necessarily be in Google's or the advertiser's interest just to pump extra ad traffic at it, as it would mess up daily adwords budgets etc... Didn't explain that very well, but hopefully you get the idea.

If I was designing the system, I'd probably make it run off an average figure, with breakout levels based on certain number of standard deviations away from the normal traffic distribution. Bit like share trading signals... That's what it feels like anyway, so I guess the trick is to consistently raise traffic levels, and hopefully, "POP!".

europeforvisitors

11:51 pm on Mar 6, 2007 (gmt 0)



It makes perfect sense that there is a glass ceiling, or earnings cap. AdWords budgets are frequently meted out over a month, or a set period, with even distribution of ads - ie, the same amount of ads are served per day, for the same amount of money. If for some reason, a site spikes in traffic, above it's average daily traffic, it wouldn't necessarily be in Google's or the advertiser's interest just to pump extra ad traffic at it, as it would mess up daily adwords budgets etc... Didn't explain that very well, but hopefully you get the idea.

Some of us have often suggested that Google may have limits on how many times a given ad can be displayed on a given site. If that's what you're talking about, we wouldn't disagree with you; it stands to reason that Google wouldn't let a site act as a black hole for the money spent on any given ad. AdSense is a network, not a rep firm, so why would Google not want to spread the wealth and--more important--protect advertisers from sudden increases in poorly converting traffic and/or fraud?

However, if such a protective measure is in place, it shouldn't be described as an "earnings cap," because it's a symptom, not the cause.

Also, even if there isn't the kind of protective measure that you and I have just discussed, the fact remains that advertisers' budgets are finite, and an increase in overall impressions is likely to change the mix of good-paying, okay-paying, and badly-paying ads. Common sense suggests that more impressions = more clicks that don't pay as well = lower overall EPC and eCPM.

BigDave

12:01 am on Mar 7, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The only way I would buy an "earnings cap" is if you are talking capacitor, and not a lid. In other words, some sort of protection in the case of traffic spikes. You would still get paid eventually, but the clicks would be more suspect and spend more time in the fraud detection software.

For those of you that do believe in a cap, do you believe it is by site (however you define "site") or by account?

andrewshim

12:57 am on Mar 7, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



EFV :
However, if such a protective measure is in place, it shouldn't be described as an "earnings cap," because it's a symptom, not the cause.

Perhaps you're right EFV... I'll be totally honest and admit that you "ol' hands" have a much better, deeper and more insightful grasp of Adsense than I do. I'm a simple guy running a home catering biz. I like things simple (like frying chicken everyday). I paste code into my webpages, people click the ads, I get money. But it seems that Adsense is a much harder chicken to deep fry...

Maybe I've been calling it an "earnings cap" because I don't know what else to call it!

BigDave:

The only way I would buy an "earnings cap" is if you are talking capacitor, and not a lid.

No not a permanent lid. If it were, I would still be making $1 a day just like when I first started. It seems like the "earnings cap" does move upward... but dependent on too many things I cannot even begin to comprehend.

Dang! I wish Adsense were as simple as fried chicken... I wonder why I'm hungry all of a sudden!

darkmage

12:57 am on Mar 7, 2007 (gmt 0)

10+ Year Member



When it comes to earnings caps, I never hear much about channel data. On a properly designed site with correctly implemented channels, evidence for a cap will stand out a lot more easily.
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