Why Google decreases CPC when traffic increases

Do you know why Google decreases cost per click as the traffic increases to your site? Well, I don't know whether you are experiencing the same or not but I am. I recently started new blog which on first few days used to get CPC around 20 cents but now the CPC is very less just around 3 cents.
This has happened with my other blogs also which are atleast a year old now.

 

Google subscribes to the saying "Every thing will even out eventually". You get more traffic, less CPC. Less traffic more CPC. Google knows how much your time is worth and paying you accordingly. We are all Google's servants. Cheers

 

The quality probably dropped. With few clicks you can likely assume those visitors are actual interested in the ad.

 

If your increase of traffic is from Social Bookmarking or something similar then you will experience this.

use channels to see which ads are not getting clicks and find a better placement for it

 

I've experienced this before as well (as I'm sure many others have). The first time one of my sites jumped from 50UV's to about 1000UV's per day, my clicks were with a whopping 2cents. I run a couple of sites where traffic fluctuates quite heavily, and after the first time, I've never experienced it again. My site still jumps to 1k UVs/day (from about 200 now), and whilst maintaining my CPC. Give it some time.

 

NO google is completly unfair It was not in the starting when it started in 2003

 

There is alot of random fluctuation with Google. Well perhaps not truly random - driven by supply and demand, driven by Google getting a better sense of your website (even encorporating your latest blog content to adjust the ads).

So it may seem like that is what is going on - but Google does not have anything like that built into the system or it would have been all over the internet. There have been speculation about them upping their revenue share to make a quarterly revenue target - but there is little proof.

Having used Adsense as a publisher for quite a while, I can tell you there are alot of ups and downs, and your best bet is not to worry about what Google is doing, but just focus on your site. Ultimately you can't control them. Cheers.

 

Probably they must be thinking u dont have quality traffic as less ppl are clicking

 

Maybe because of repeated visitors, or smart pricing, I've noticed this too.

Its not a linear graph between earnings and traffic.