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Recently, many web-publishers reported drastic drops in their Google AdSense earnings and offered up many theories as to why that occurred. The problem was reported in web forums and on popular SEO blogs. After all that, we’ve narrowed it down to 8 possible explanations.

In other words, we’re closer, but not there yet. It could be innocent, accidental, natural, or orchestrated, but the majority of you seem to be reporting steep (and for some of you, I mean steep) drops in AdSense earnings. The Search Engine Roundtable poll mentioned last time grew to 135 respondents, and the percentages stayed the same: 55% are reporting decreases in earnings. 

It could also be that angry people speak the loudest, but many seem pretty sane in their reporting, saying earnings are declining despite level page views and click-through rates.

But we’re going to err on the side of the smaller guy, assume you’re getting screwed by the big guy, and propose the most possible and/or likely reasons for that. Included with this assumption is that all of you are on the up-and-up with great content, great SEO, great business savvy, and have done everything right but still find yourselves victims of the corporate machine.

See how nice that is? Here goes.

It’s the economy, stupid.

This explanation wins the Occam’s Razor Award—i.e., the simplest explanation is the correct one. As the economy enters a slow-down period, many advertisers are trimming their budgets, decreasing how much they spend on branding-related advertising and redirecting those funds to more direct response ads, which would include AdWords.

One commentator noted the golden rule of the economy: It will fluctuate. This could be what’s happening, and that fluctuation could be swelling on the political side of the content fence as Presidential primaries take center stage on the Information Highway.

Advice: Look into AdWords and improve organic SEO. Otherwise, wait it out like the rest of the economy.

Google got stingy with the AdSense real estate

During an increased focus on conversions rather than clicks and intensified efforts to combat click fraud, Google made AdSense ads more difficult to click. A few have reported that since “the clickable area” of ads was decreased, CTRs have also decreased. At the end of the day, the AdSense drop many publishers are experiencing is a direct result of Google’s offensive against accidental clicks.

Google is another good company gone public

This is a more cynical, greed-driven, conspiracy explanation that may resonate with more distrustful element of the audience. You know how everything seems designed to make you pay more at the gas pump? Reports come out that $3.71 per gallon is the tipping point where Americans will drive less, oil is at record prices as companies collude on what to charge on a street-by-street level, and Exxon cites less supply while setting yet another quarterly profit record by pulling in $1,300 per second, and the oil profiteers in the White House hadn’t seen any type of crisis on the horizon for the past 30 years.

Phew. Try to say all that in one breath. But the theory goes like that. Shareholders like profit.

Read more



Appears that way for some

There’s word around the Webmaster World forum that publishers have been experiencing a sharp decline in AdSense earnings over the past month. There’s been little consensus, lots of possible explanations, but nothing you might call conclusive.

A small poll at Search Engine Roundtable (43 participants as of this writing) shows just over half reporting a decrease in AdSense earnings, the other half reporting that things are on the level or increasing.

It’s hard to say that’s a representative sample with just 40 respondents, but it does match a bit with the reports at Webmaster World: some are losing, some aren’t.

Many plausible explanations have been proffered without any real, thorough site examinations, as no URLs have been given by those complaining. The center of conversation though, has been around Google’s “smart pricing,” and whether that is the cause of lower returns on ad clicks.

How much an ad’s cost-per-click is determined by a number of factors, according to the AdSense blog’s explanation:

More than conversion rate goes into determining the price of an

ad: the advertiser’s bid, the quality of the ad, the other ads competing for the space, the start or end of an ad campaign, and other advertiser fluctuations.

Google denies that clickthrough rates affect the price of an ad click, though they don’t go into how much weight is put on user action beyond the click, i.e., sales completed, forms filled out, engagement on the site that follows. Google describes smart pricing this way:

“Google’s smart pricing feature automatically adjusts the cost of a keyword-targeted content click based on its effectiveness compared to a search click. So if our data shows that a click from a content page is less likely to turn into actionable business results — such as online sales, registrations, phone calls, or newsletter signups — we reduce the price you pay for that click.”

But observers are right also to note that the higher quality the site, the higher likelihood the publisher gets high quality, costlier, better-converting ads. AdSense Publisher Support pretty much says so, reminding publishers that content is king:

“[Smart pricing] leads to higher payouts for publishers by drawing a larger pool of advertisers and rewarding publishers who create high quality sites… The best way to ensure you benefit from AdSense is to create compelling content for interested users.

 

 



You have two choices to consider when trying get your site ranked higher in search engines. You can hire a Search Engine Optimization Company that is an expert in the field or if you have some time, you can do it yourselfResearch your KeywordsAsk yourself what keywords you think someone might type in when searching for products you sell or services you provide. Though a keyword may be only one word it is usually a phrase made up of keywords. Phrases are more specific and will more than likely be what potential customers use when searching for products or services online.After a quick brainstorming session write down all that you were able to come up with. Make sure to consider geographical phrases if they are important to your customers and don’t forget of alternative words that could be used (an example could be “new car Littleton”). Make sure to surf the websites of your competition to get more ideas until you can come up with a list in the neighborhood of 20 to 30.

Now you should take two keywords from your list that you feel potential customers will use most frequently. Take into consideration that popular keywords are also competitive keywords and harder to achieve higher ranking with. If your goal is to obtain a high ranking for the term “auto insurance”, the path to achieving it may be long. Try to make your keywords the ones that are most related to your business and not riddled with vagueness or extremely competitive. Make each phrase about two or three words in length like the previous example.Now that we have your keywords we will move on to the next step.Site TextYour site text is made up of the wording that is on your web page. There is a phrase for search engines and it is content is king. Search engines love unique content and your keywords should be placed in key locations within the content so Google understands the relevance your site has to them. Also make sure that your copy reads well around them as it needs to make sense for your visitors who are most important.Keywords can be placed in headings, at the top of pages, in bold or italics, used as link text for other pages of your site and in your title tag.Add additional content after you are finished tuning up your webpage. Give more detailed descriptions of the products and services you offer. Provide a frequently asked questions page and pages of articles that pertain to your products or services.With your design you should keep in mind that search engines cannot read images nearly as well as text. Sites that are made up with excessive flash or pictures really impede how well they can read the content of your site.Link BuildingA common way of thinking about links is that every link from another site that leads to yours is a vote for the popularity of your site. Every quality link you receive can improve your search rankings.The quality of your inbound links is more vital than the quantity. The preferred and more valuable link is from sites that are relevant to your niche and with authority (highly regarded in the niche). A quality directory with relevant categories is another example. Just a few quality links with authority can have more value for your site than hundreds of lesser quality. Think of it like you do your personal business network. Both can have a strong effect on the success or failure of your business. Read more




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