When it comes to making money online with Google AdSense, "Less is More". As a pay per click publisher, I've tested it and found it to be true. There is a simple reason why this is the case.
Many people think that putting more AdSense ads on their website will increase click through volume, and therefore increase revenue. However, this method backfires and you actually get the opposite result.
The fact is, the more AdSense ads you place on your site, the more you will have lower paying advertisers featured. The lower an advertiser pays to Google for their ad, the less revenue there is for Google to share with you.
Here's how it works. Let's say for example that there are ten pay per click advertisers related to your website promoting their product on Google. We will break them up into three groups.
Top Level Advertisers: The top four advertisers paying .75 cents per click.
Mid Level Advertisers: The next three down the list are paying .40 cents per click.
Low Level Advertisers: The final two advertisers out of the ten in our example paying only .10 cents per click.
If you only put one group of ads on on your website, you increase the chances of the higher paid advertisers being featured most of the time. Basically, if the group of ads you post on your site features four rotating ads in a group, there is a much higher chance that your first four advertisers paying .75 cents per click will be featured most of the time. Two groups of ads are still usually OK, but I encourage everyone to test it for themselves to see what works for their own website.
On the other hand, if you start to overdo it and place three or four ad groups throughout your site, you may in fact get more clicks, but some of those clicks will be from the lower paying advertisers. I have found that clicks do not necessarily increase with more ads, but revenue usually goes down. Fewer ad groups on your site will also enhance user experience, which will bring long term growth to your revenue as well.
Article Source: http://EzineArticles.com/?expert=Lowell_Christensen
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