Clicks up, earnings down

I've been learning a lot on the forum here, and my No of clicks have been going up all the time. However I noticed my earnings seem to be going down in the last few days, despite the No of click going up...

Can anyone explain how this works? Do the earnings depend purely on what business are willing to spend on adwords?

Cheers!

 

Yes, it depends a lot on that. Keep in mind AdSense earning are never stable.
It also depends on where your traffic is coming from. US, UK traffic generally converts better.

 

May be your clicks were not converting well thus your account got smartpriced.

 

It all depends on which ads are appearing on your site. Since some ads pay low and some pay big so don't worry.

 

Thanks a lot for the replies guys!

What does that mean please?

 

When your traffic don't convert well for the advertiser, Google will SmartPrice you.
You will get paid less in order to protect the advertiser for spending too much $$$ for nothing.

 

Ok, thanks for that! I've just read up on it, and it sounds pretty unlikely as I have a lot of content...I'll see if it picks up.

Cheers!