More Money with less adsense ads?

Posted on Dec 6, 2008 in AdsenseAdvertising
I recently read an article by Taylor J argueing whether less Adsense units on your page will result in more money by Adsense. I know this is not a unique thesis, many bloggers suggest that less clicks equals more money. Is that really true or just another Adsense misconception?Taylor says no and suggests to put the highest paying ads on the top of the page. Well, that won’t really help us because placing high-paying Adsense units somewhere else will most likely result in less money from that unit and consequently less money in total.The Click Through Rate and the Cost Per click are the factors that determine how much money you will get. More clicks, or more money per click results in more money in total. That means you will want to optimize the CTR and CPC.The theory that more money can be earned with less Adsense Ads is somewhat unreasonable. Less Adsense Ads will result in lesser clicks and as you lose clicks you will lose money. The only way to compromise your CTR loss would be to improve your CPC. Improving the Cost-Per-Click is very hard because you can not directly influence it, it is determined by the return of investment (ROI) for the advertiser. One aspect of the ROI is the conversion rate…. Influencing the conversion rate of your readers is somewhat difficult because Google has strict rules. Telling your readers to click on the Ads to buy a certain product is not allowed and will result in your account getting closed.Drawing a conclusion – keep in mind the following factors:
  1. Click Through Rate (CTR)
  2. Cost per Click (CPC)
As said above, to optimize the earnings you will need to work on the CTR, simply because it is very hard (I am not saying it is impossible) to improve the Conversion Rate of your users whenever they click ads. So what does that mean regarding the idea of a lower amount of ads per page?Lowering the amount of Ads will result in a lower CTR and consequently less clicks and less money. The only way of getting more money out of fewer ads would be to optimize them physiologically to attract more clicks to that single Ad unit than to all of your Adsense Units before. That is normally not possible, especially if you already implemented my adsense color-tips and positioning tips.Of course- you could also achieve similar by upping your cost per click rate. In fact, that’s an interesting topic whether less adsense units lead to less false clicks and consequently an higher conversion rate. Certainly something that might be worth another blog post :-). All in all you can not influence your CPC greatly which means that trying to do so is the wrong attempt.I can only advise you not to remove your Adsense units. Doing so will lower your clicks and consequently your income.