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I do see them on some pages, but only on second Adsense slots. Which I use very rarely anyway.
Performance is much lower than the primary slot. But you can expect that. If you're running only one Ad/page I would consider disabling them (you need to contact G for that).
Site-targeted CPM ads can be a great way to earn more revenue from pages that don't perform well with contextual ads.
Yes, but I am currently having a problem with a large company that has site-targeted me using a high impact Flash banner of an upcoming horror movie.
The banner is great and the ad is great, but it is only relevant for one area (entertainment) of my site. My health and food pages don't need that ad.
Of course, it would be nicer if the advertiser learned to site-target using the available channels I've set up.
When you get paid by pageview it doesn't really matter it's an ad for 'Big company X'. They are branding and if it's not of any interest for the user, they'll ignore the ad and read on .
Why doesn't google make Site targeting still contextual?
let's say you can target a site, but only if google system deems it contextual.
That's coming, but site-targeted contextual ads will serve a different purpose: to give advertisers the option of paying more for better-quality clicks.
To use an analogy, site-targeted CPM ads are like magazine ads that may or may not be intended to generate immediate sales or leads; contextual ads (whether site-targeted or not) are like direct-response ads that are intended to generate immediate sales or leads.
Sometimes both ads will show targeted, but most of the time you will get the best of both worlds. Site's with only one ad per page can be somewhat hurt with targeting, that's why you wil read mixed feelings on targeting here.
Several other sites had a few very steady advertisers prior to taking CPM off, and those particular sites should get clicks that convert well because they do for the other stuff on the pages. They're very specifically targeted product pages.
Now that the MFAs/arbitrage sites are going I think I'll give CPM another try.