Listen to Google Adsense team to maximize revenue potential of your site

This is summarized excerpt of Google Adsense team advice to maximize the earning potential of your site.

While the revenue fluctuation, especially if revenue earnings are on decline, is bound to bother you, you may not always be able to decipher the root cause. Google advises you to look for following in case you experience decline in revenues.

First recommended step is to check for various revenue indicators from the site stats as such as eCPM,
CTR, and page impressions etc. Calculate revenue by multiplying your page impressions by the effective cost-per-thousand impressions (eCPM) and dividing by 1000.

The eCPM would let you know that how much revenue you can expect to earn for every 1000 page impressions. Now this is the average earning potential of your site and as the traffic increases, your income should increase correspondingly in this ratio. Most Adsense ads pay on a cost-per-click (CPC) basis, so eCPM is really a measure of your average ad performance. This would give you an idea about how much revenue you'll earn for a given amount of page views.

You can also have ads that pay per impression (CPM). Keep in mind that that these two types of ads (contextual / placement) targeted compete against each other in the auction.

Now, if your revenue goes down, first check, did your traffic too registered a decline? Compare trends in both page impressions and eCPM using the Advanced Reports in your account. You can also use a web analytics tool such as Google Analytics to get this information.

Keep watch, whether, your account gets more unpaid public service ads (PSAs). If so, please check for possible anomalies in your site. While it is possible that during a given moment, there is no ad inventory for your site in your region, frequent such occurrences could mean something wrong in your content. You can also use Google Adsense preview tool to check if there is no ad for all the regions or just few region.

A change in placement targeted eCPM rate usually indicates that advertisers are beginning or ending campaigns targeted to your site. Placement-targeted campaigns are more likely to be short-term than contextual campaigns.

You should also periodically check using Webmaster Tools to be sure that the Google is properly crawling and indexing your site.

You revenue income could also be facing declines due to change in CTR. Some possible reasons for CTR to decline could be; Crawl Problem and that you are served irrelevant ads leading to poor click through rate; If you have changed looks and feel of your site, the new look may not be well received by your visitors; try matching ad colors with the content; or simply your readers could be having ad blindness.

To improve the ad click rate, you should allow all ad formats as text, image, video, flash, and gadget ads.

Different sections of the site perform differently as articles could get higher ad clicks than forums. Take care of this aspect by making ad channels and watch your revenues zoom.

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