No, it isn't Anthony. Actual traffic is not increasing. If all these new sites immediately began drawing traffic, maybe. But if a site is running Adsense and no one goes there it does not increase the number of impressions. The recent explosion of new sites is due to the scrapers and phony blogs which no one goes to except by accident, and then they don't stay very long. Adsense reached saturation with popular sites months ago. This most recent G update (some call it Bourbon) is weeding the phony sites out of the index, they won't be drawing much traffic if they are only in the Yahoo/MSN SERPS and Y/M will be cleaning them out too. Andi
We had a thread here a while ago where someone quoted a report published for Google investors that basically mentioned what I did in my post. http://forums.digitalpoint.com/showthread.php?t=13202&page=3&pp=40 Google themselves mentioned that payouts to publishers would decrease as more publishers signed on and that is exactly what is happening.
So now it is Google's marketing plan and not supply and demand. That does make more sense--G wanted to sign up as many publishers as quickly as possible to lock up the space. Nothing like cash to encourage newcomers. The Adsense market is indeed maturing and more creative ways to make money are always on the horizon for those inclined to look for them. A.
All marketplaces are supply and demand, those that control the marketplace could be called "market makers" and that is what Google acts as, the exchange makes the rules and determines the payouts. Do we really know what they are getting for a click? We just know what they pay us........and that is going down fast
I am both an Adsense publisher and an Adwords advertiser. I see no evidence that Adwords bids are going down. So, I am wondering if Google was paying me well on some new topics and then backed off after assessing it and setting page rank. It would be nice if it went the other way that payouts start low and moved up over time.