A lot of publishers have noticed some major changes in their Adsense earnings since the beginning of 2016. Some of you might be surprised to know that "dropping revenues" aren't new. Anyone that has been with AdSense for more than a couple of years will already know that revenues continue drop on a CPC basis.
Back when AdSense first became a popular product (AdSense's beginnings go back to 2003) it was easier to earn enough every month to not only make a living doing it, but to toss up a website in a day or two and build your site portfolio. Earnings topping thousands of dollars every month per website were not that tough to acquire if you had a computer and internet access. The number of websites were much smaller than the number today, but so were the number of people using the internet much lower.
Over the years, marketing changes have made it a lot harder. As publishers, we like to think that AdSense "has our back", but the fact is that a lot of changes made in AdSense's products are usually precipitated by advertiser satisfaction, rather than by publisher's demands. And because advertisers can now place ads for much less expense, and there are many more publishers and monetizable platforms, the earnings are driven downwards on a CPC basis.
In everyday terms, it's representative of the supply and demand theory. When you have a lot of something (in this case publishers), and less demand for that something (not as many advertisers), the cost (in this case CPC) should go down. But supply and demand is not quite as simple as that. Even if you have a lot of publishers/websites, if you also have a lot of advertisers, the cost should remain relatively stable.
Back when AdSense first became a popular product (AdSense's beginnings go back to 2003) it was easier to earn enough every month to not only make a living doing it, but to toss up a website in a day or two and build your site portfolio. Earnings topping thousands of dollars every month per website were not that tough to acquire if you had a computer and internet access. The number of websites were much smaller than the number today, but so were the number of people using the internet much lower.
Over the years, marketing changes have made it a lot harder. As publishers, we like to think that AdSense "has our back", but the fact is that a lot of changes made in AdSense's products are usually precipitated by advertiser satisfaction, rather than by publisher's demands. And because advertisers can now place ads for much less expense, and there are many more publishers and monetizable platforms, the earnings are driven downwards on a CPC basis.
In everyday terms, it's representative of the supply and demand theory. When you have a lot of something (in this case publishers), and less demand for that something (not as many advertisers), the cost (in this case CPC) should go down. But supply and demand is not quite as simple as that. Even if you have a lot of publishers/websites, if you also have a lot of advertisers, the cost should remain relatively stable.




