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Many webmasters have observed a recent dive in the ad revenues from Google AdSense. This is a post I made at a popular internet marketing forum:

I’ve always been a proponent of diversification. Don’t rely on just AdSense. Start testing out other programs such as YPN, Chitika and Kontera. You don’t want to be solely dependent on AdSense as something like this could happen.

There are a couple of scenarios that could account for the drop in CPM.

First, advertisers may have better tools now to track ROI and realize that their ad spend on the content network is giving them lower returns than the search network.

Recently, Google also introduced separate bidding for content networks. This could also result in lower payouts for webmasters who display AdSense.

Also, since Google doesn’t tell you what the revenue share is, they can easily adjust the revenue share without having to inform the publishers. Imagine this scenario (which is not too far out). Google is now a public company which has to show profit/revenue growth to their investors. What if…

What if towards the end of the quarter, they realize that the numbers aren’t going to be quite as spectacular… what’s stopping them from adjusting the revenue share for AdSense so that they collect more of the revenue from the ads?

Thoughts anyone?

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