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If you were an advertiser, would you rather choose the ability to target your ads like the options on Facebook or the options on the Google Display Network?
Why are publisher CTR and CPC prices down?
ember - AdSense is NOT Adwords
AdSense is display marketing and ads show up on publisher websites. AdWords is keyword specific campaigns that show up in the Google search results.
Most Adwords advertisers have no connection/impact on us as AdSense publishers because run "Search Network Only" campaigns
ember - AdSense is NOT Adwords. AdSense is a tiny portion of Adwords
I can only speak for the U.S., but the ads I see are highly relevant to my likes, interests, etc.
So is the expansion in the number of publishers using adsense.
This, more than anything, is causing numbers and expected ROI to fall well below expectations for many. There are only so many ads to go around, and way too many places to put them.
You sum up FB quite well. I abhor FB with a passion.