ECPM dropped - earnings are goin down...

Discussion in 'AdSense' started by nethead, Dec 4, 2008.

  1. #1
    Hi guys, we have a lt of sites and most are doing good.. we do have a big website and the ecp has dropped from $20 to around $15 - the site gets a lot of traffic so believe me that $5 makes a big difference... I just wanted to see if anyone else has been experiencing changes with adsense and if this is seasonal or is it maybe do to recession ??? Would love to speak to other DP members to see if anyone else is in the same boat....

    Thanks
     
    nethead, Dec 4, 2008 IP
  2. iamsgf

    iamsgf Active Member

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    #2
    This is somehting that is effecting everyone at the moment.

    I have noticed that my CPC has gone down. Now I believe this is due to the very strong $ at the moment. Most of my clicks come from the UK. So as the Advertisers are paying in £ then the CPC in $ is now reduced.

    Example:

    3 months ago it was $2 to the £1. My average CPC I was getting was $0.30
    Now it is $1.5 to the £1. My average CPC I get is $0.20

    So you will find that if your clicks are based around non $ advertisers then that wpould be about right. I can see that you have dropped by 25% which reflects the strong $ at the moment.

    Hope this helps.
     
    iamsgf, Dec 4, 2008 IP
  3. cjg

    cjg Peon

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    #3
    I also noticed a lower Ecpm, but it could be due to lower CTR's or other factors. I also think that advertising is down which would lower the amounts people need to pay. we also run a top 100,000k alexia site
     
    cjg, Dec 4, 2008 IP
  4. nethead

    nethead Peon

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    #4
    Thanks guys... I'm sure all the holidays have some say in it as well but I hate to see ECPM drop around 15-20% - on any site... more so when a site gets tons of SE traffic... I guess we just wait and see what happens next month.

    Nethead
     
    nethead, Dec 4, 2008 IP
  5. SnoutOut

    SnoutOut Peon

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    #5
    Having managed AdWords & Overture for the past six years, I can tell you that what the person bidding in the #1 position and and the #3 position varies tremendously.

    The guy in the top spot is usually way overpaying per CPC because he's in a race to get to #1, he doesn't know you can bid a different CPC in the content network, or both.

    Typical Max CPC for content network might look something like this:

    #1 - $3.00
    #2 - $2.00
    #3 - $0.75
    #4 - $0.30
    #5 - $0.20

    That's a big difference between #1 and #5.

    To make matters worse, because the guy at #1 is ignorant to the fact that he is overpaying for content network CPCs and that visitors who happened upon your ad (content network) are much less likely to convert than individuals actively seeking for your product (search network), he is not seeing the return that he is expecting.

    His poor AdWords management leads to poor AdWords returns, making him the one most likely to pull or reduce his AdWords budget. With that said, there is always a new AdWords noob with the promise of internet gold who'll follow shortly to take his overbid position ;-) During a poor economy, these over bidders are likely to drop out with more frequency and come in with less frequency.

    These are the biggest reasons that earned CPC can vary so greatly. It's a combination of which ad the visitor clicks on and the changes in users who are over-bidding.
     
    SnoutOut, Dec 4, 2008 IP
  6. SnoutOut

    SnoutOut Peon

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    #6
    Could be your niche.

    I.e. News keywords average cost is $0.05 - $0.015 per click. Mesothelioma is somewhere around $23.00. Everything else is in between. Your cut is half. Niche matters.
     
    SnoutOut, Dec 4, 2008 IP