It is a common fact that the majority of webmasters are experiencing a decrease in PPC earnings from a number of PPC advertising companies. In recent months we saw a number of reports from webmasters stating that earnings per click have decreased across the board.
One need to keep in mind that there are a number of factors that may influence the costs per click on advertisements. One of these factors are the origin of visitors. It is a general fact that visitors from countries such as the US, UK, Europe and Australia will generate larger income per click than visitors from other parts in the world. Take a look at your stats and see if there are any noticable changes in traffic to your website.
Another factor is website content. If your website expanded and include more content not related to the niche, your website will attract non-related advertisements which may pay less in PPC. Always ensure that you re-visit your website and look up on the latest content added. Pay attention to the keywords contained throughout the site as this may directly influence your earnings.
Personally we suspect that the biggest contributor to the decrease in PPC earnings is the current global financial crisis. As more companies focus on cost-saving they also close the taps on advertising expenditures. This in turn directly impact on PPC advertising companies. Due to lower numbers in advertising PPC revenue sharing with publishers also decrease.
One can only wait and see how PPC earnings will be effected once an upturn in the financial crisis occurs.
