Forum Moderators: martinibuster
Am I the only one :)
- earnings per click = EPC.
- clickthrough rate = CTR.
- effective CPM = eCPM (a number that's determined by the combination of EPC and CTR).
As for why your earnings are down by 80%, that's hard to say. It could be a combination of factors, such as low seasonal demand by advertisers, Smart Pricing, etc. September is less than two weeks away, so maybe things will improve when people are back at work and school.
Oh I should clarified this better is this month August mostly that things gone down so much no the whole summer.
I hope in September thing changes, I miss the extra money :)
This will be my absolute worst month for Adsense, even over the very first month when I had much less traffic.The drop started the last couple of days in July.
Same here, started en of july and EPC is one of the worst in the past 2 years, CTR is a little higher though, thank god, but it's like advertisers are just willing to spend pennies these days.
same here... when does it pickup? September? U.S economic downturn?
I'd expect that to depend on why your earnings ar edown.
- If it's seasonal (and you aren't publishing a site about beachwear or barbecues), traffic and earnings may pick up in the fall.
- If it's the result of economic factors (such as the financial industry's economic fallout from the subprime crisis), your earnings may improve when economic conditions get better in your sector.
- If it's the result of "smart pricing," earnings may pick up if the smart-pricing formula changes or the quality of your referrals improves.
- If it's because your site is being filtered by advertisers (with help from the new Adwords placement reports), you're likely to have a longer-term problem.
Also, it's possible that several different factors have created a "perfect storm" that's wiping out your earnings. If you have a site devoted to high-end housing in the U.S. that doesn't perform well for advertisers, for example, you could be a triple-whammy victim of the current mortgage crisis, smart pricing, and filtering. Then again, maybe not. In an auction-based system that's managed by complex algorithms, simple answers are hard to find.
If it's the result of economic factors (such as the financial industry's economic fallout from the subprime crisis), your earnings may improve when economic conditions get better in your sector.
That seems logical, but OTOH, this crisis might benefit webmasters in that sector. For example, last week Counrtywide laid off 500 employees. Today I noticed that they're bombarding Yahoo with banner ads. So it's possible that during a crisis, companies will turn to a less expensive method of advertising. It's cheaper to advertise on the Internet than on TV, radio or a major newspaper.
A friendly reminder: Next weekend is Labor Day in the States. Buckle up for a possible four day drop in US traffic. ;) Last year on Labor Day 2006 [webmasterworld.com] many people experienced remarkable lows, although a smaller group posted upbeat reports.
my main explanation for the bad situation:
much stronger percentage increase in number of publishers compared to percentage increase in number of advertisers.
but: this can't last forever. at least i hope it will change some time. why? because in the long run advertising capabilities will grow slower than ad spending. aggregated attentiveness of users, number of interested users, usage intensity, extent of viable ad space - all these numbers will reach a limit relatively soon.
the question is: when will publishers finally notice some of the online advertising boom in their pockets?
- Traffic is down, as expected for the season. It's summer, the site topic is motorcycles, and, well, people who would be likely to visit the site are out riding, not surfing the web.
- eCPM is up slightly.
- CPC is about average. Nothing to be excited about.
- CTR is up slightly
So, yeah, total revenues are down. Which I would expect from a time when traffic is down.
Most importantly, though, advertiser ROI from content suggests that click for click, AdSense converts at 1/4th the rate of Google search clicks, meaning advertisers should pay 1/4th the CPC they pay on search.
I think more advertisers will come to the same conclusion over time, causing some on this forum pain & agony.
I've been on the SEM agency side the last four years and my only involvement with AdSense is in that context. I've loved visiting the WebmasterWorld AdSense forum regularly over the years, but have always found it odd how little discussion there is about the thing that matters most to the long-term health of AdSense and your livelihoods from it = advertiser ROI.
Most importantly, though, advertiser ROI from content suggests that click for click, AdSense converts at 1/4th the rate of Google search clicks, meaning advertisers should pay 1/4th the CPC they pay on search.I think more advertisers will come to the same conclusion over time, causing some on this forum pain & agony.
It will be interesting to see the impact of site-targeted CPC ads when they're officially deployed.
AdBrite is surprisingly becoming strong for me and can run with adsense so I gave it one of the usual adsense slots last week. I think its being allowed to write custom code with adbrite thats helping me personaly. Seeing "Your ad here in seconds" instead of the usual 'ads by goooooogle' is helping a lot. Visitors who click it can purchase the space quickly.
I agree fully with the above. If it won't affect my earnings I'm up for any ideas which might increase ROI for advertisers.
But two questions:
1 How do I know what ROI my Adsense advertisers are getting?
2 How do I improve their ROI? For now, the ads are very well-targeted and I use no dubious techniques to get clicks.
Any ideas anyone? The basic idea must be in the interests of most of us on this forum.
Check all geotargets using the preview tool (yes I know it takes ages to get it done for just one page).
I've loved visiting the WebmasterWorld AdSense forum regularly over the years, but have always found it odd how little discussion there is about the thing that matters most to the long-term health of AdSense and your livelihoods from it = advertiser ROI.
If I understand AdSense correctly, publishers have no control over that, no visibility into the merchants sales, no control over the landing pages so there really isn't anything else to focus on aside from maximizing revenue on the publishers side.
Overall merchant sales have been in the tank for the summer - June, July, August but should start to bounce back pretty soon unless the whole housing bubble really bursts and nobody has any cash to spend. When sales are down, the ad revenue will usually sink in tandem.