Is Google Adsense shortchanging me?

Is Adsense shortchanging me?

[luckystrike]

I've been checking the google Keyword Tool for my niche (which is very competitive by the way) and the average CPC there is well over $12. However on my site I'm lucky to get a $1 a click!? What's going on here? I can't believe this is smart pricing? It feels like someone is short-changing me? Should I set up my own network (or participate in one that allows me to set my own CPC) and try to attract advertisers directly?

[Rodney]

Should I set up my own network (or participate in one that allows me to set my own CPC) and try to attract advertisers directly?

If you feel it could be worth your effort, why not give it a shot?

I've been checking the google Keyword Tool for my niche (which is very competitive by the way) and the average CPC there is well over $12.

I don't think the keyword tool has any correlation to the CPC that advertisers are bidding on your website in the content network.

I'm pretty sure that's the CPC for the search network, which is traditionally an area that advertisers bid more on for various reasons.

[incrediBILL]

$12 is the price to advertise on Google, not the content network.

Your site will have been "smart priced" down to some amount that properly reflects the ROI advertisers tend to get from similar sites like yours.

[edited by: incrediBILL at 8:59 pm (utc) on Feb. 1, 2010]

[netmeg]

By the way, as an AdWords advertiser in some pretty expensive niches, I can tell you that that Keyword Tool is great for suggesting related keywords, but not so hot on suggested pricing. I *never* have to pay anywhere near what they say the going market is on my keywords - for example, I have a set of keywords that show in the neighborhood of $18 to $27 in the Keyword Tool, and I, with a QS of 10/10 am paying no more than $3, for spot 1-3 in search.

Content network campaigns are often priced below search campaigns (and the Keyword Tool, as @incrediBILL mentions, doesn't cover Content) plus you don't know if they clicked the first ad on your site or the last (even if you're using channels, that only applies to ad BLOCKS, not individual ads), at the time they clicked, the top advertisers in that niche may have exhausted their budget for the day, plus you could be smart priced - there's a number of things that could be going on.

Bottom line - don't go by the Keyword tool.