i am not sure but i think there are smart pricing clouds are over my website. My average CPC is $0.09 -$0.12 but from last couple of days it has dropped to 2 clicks of 1 cents. Avg CPC $0.005 . What i have to do to get rid of this cpc
Smartpricing is very difficult to spot. And, if you don't have large numbers (large sample sizes) it's even more difficult. If you have impressions of 10K and more per peroid and consistently falling EPC (which you have to calculate yourself) then it may be worth analysing a bit more. In any other program you'd be able to remove the lower paying ads and do some testing that way. That doesn't work in Adsense as it's not CTR but conversions that decide whether your traffic gets affected by smartpricing.
Try to figure out your problem from "quality" traffic only. Quality Traffic -> if you use Adwords then it is rated as quality traffic.
There is very little definative data on this subject. Serps may or may not play a role in determing the value of a webpage. I personally have found a relationship between the 2 but maybe that this is site specific . Jen outlines it pretty good here.
Since it has just been a problem the last couple of days, I would bet it has more to do with the holiday weekend - many advertisers lower bids or pause campaigns over long weekends. It has been a consistent pattern since AdSense launched that most publisher sites see an earnings drop during holiday weekends.
Never knew it was a holiday weekend - now I know why my income seems to have taken a hammering. I thought I'd dropped out of the SERPs or something. /me must remember to program my calandar better.
I have definitely noticed a correlation between cpc and SERP rankings. It is possible that it is purely coincidence, but I doubt it.