It is definitely clear that I am smart priced, but what could be the reason? I have an arcade site that is starting to get some traffic, it also has a good CTR but the problem is my earnings is very low. It will be helpfull if someone helps me to overcome this problem. If thats not possible what is the alternative to adsense that I can try. Please help me.
Arcade sites are a low paying niche. .03 isn't that unusual. Smart Pricing has to do with conversions of your traffic (what the visitor does once they click an ad). For PPC, I don't think you'll find anything better paying than adsense after you factor in your high CTR.
I agree with the prevailing opinion that arcades don't pay much per click per se. But your above post I think is right on the spot - while AdSense is certainly important and you may get substantial improvements in earnings by some fine tunning (ie. placement, appearance, marketing to the more profitable geographical markets), try to join/create alternative sources of revenue such as CPM programs and/or affiliate products within your niche.
You are not alone mate! Even I get less than a dollar for 15 clicks. I think we have to create a niche for high paying key words.
u can try adbrite and kontera...Kontera pays good if u have good traffic and adbrite wins hands on their popups and stuff...