One of ProBlogger’s readers – Charles – asks the following question:
‘do you know anything about what drives the sometimes wild variation in day to day click values…’ (see longer version of the question).
It is a good question and something that I know many people ask so I’ll answer it publicly. There are a variety of factors that could explain the phenomenon of the variation of click values.
Geo Targeting – the global positioning of the reader clicking on the advertisement can have significant impact upon the value of the advertisement. I know of two bloggers who started blogs at the same time on the same topic – one of which has a .com URL and gets traffic from around the world, the other of which has a .nz (New Zealand) URL and gets quite a bit of NZ traffic. The .com blogger’s click rates are significantly higher than the .nz one’s. In my opinion this is largely due to the fact that advertisers targeting NZ readers are not paying as much for the ads as advertisers in other parts of the world due to market size and competition between advertisers. This could explain quite wide fluctuations in click values.
Demand and Supply – a number of Adsense publishers that I know of tell me that they’ve tracked variations in click values on a variety of levels. Most of these might not explain wide variations. They include: