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Does Competition Impact Payouts?

     
5:52 pm on Jan 8, 2008 (gmt 0)

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WebmasterWorld Administrator incredibill is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

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Something that's happened twice in a 6 month period is a close competitor has been penalized in Google and both times my income went up. I'm pretty sure this isn't a seasonal trend because I keep a close eye on my competition and I knew the exact day they fell out of Google both time.

What I'm talking about is that my eCPM shot up both times this other site has gone off the radar in Google. No radical increase in either traffic or CTR, just a better eCPM on roughly the same number of clicks per day.

What this suggests to me is that AdSense is sending me more of the higher bidding advertisers now that there is more high paying inventory and slightly less demand.

Has anyone else ever noticed this happen before?

6:02 pm on Jan 8, 2008 (gmt 0)

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If you saw no change in traffic, then it must be the traffic quality that has changed, yet you say no change in CTR, only the eCPM.

Your explanation of top inventory competition makes sense, but how can your closest competition drop off the radar without your seeing a traffic boost? Is your niche that saturated? For if it is, then this would blow your inventory competition explanation off the water.

could be a coincidink Bill.

6:31 pm on Jan 8, 2008 (gmt 0)

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Yes, my niche is fairly saturated and typically I'm already pretty high in the SERPs in regards to this competitor and we often alternate for the same positions across lots of keywords.

However, not everyone in this niche uses AdSense and only have their own direct ads so there are some nice big AdSense gaps in the top 10 so maybe only 2-3 out of the top 10 have AdSense whatsoever, often I'm the only one now that the other one is gone.

That's why my suspicion is when someone virtually at the same level as I am disappears it leaves more high paying inventory and thus the eCPM boost that happened.

5:57 am on Jan 9, 2008 (gmt 0)

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What this suggests to me is that AdSense is sending me more of the higher bidding advertisers now that there is more high paying inventory and slightly less demand.

If AdWords is anything like I remember it, then there is a daily budget setting. If your main competitor's AdSense went down or whatnot, then it would make sense that an advertisers higher paying ads would display longer on your site as the competitor is no longer draining their daily budget.

 

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