I have posted my article about my view on how to increase CPC and one of my forum buddy RJ David has a different opinion about it and he agreed that I can share it here.
I still personally prefer the other method as I am earning more now from google’s adsense but this site just averages 60 unique visitors a day so it might be different for other webmaster so I hope RJ’s post will give you the other side of the story.
If you have an opinion about this, please feel free to share me the link to your post or feel free to comment here.
Here is what RJ said:
Do not look at this at one or few payment periods. The long term effect of this will average to just equal or even lower if you choose this blacklisting technique. Averaging-out is more pronounce actually if you have more traffic.
Aside from experiencing it with millions of adsense impressions daily (I did the test for a number of times for months), here is my reasoning why this is the case.
Google has a very good algorithm running behind its adsense program. As a business, we can definitely say that Google’s algorithm is trying to maximize the earning potential of Google. That earning potential depends on 2 things: (1) the probability that the advertisement is going to be clicked; and (2) the amount the advertiser will pay when the advertisement is clicked. Google continuously computes for these 2 variables to maximize its own earning potential.
To make it easy, let us say just for the sake of this example, that Google pays 50% for the publisher. What Google earns, the publisher earns also. The higher the publisher earns, the higher Google earns.
For example, advertisement A earns Google Php 1.00 and advertisement B earns Google Php 10.00. In a page, if Google displays advertisement A, it means that Google’s algorithm dictates that even it only pays Php 1.00 compared to Php 10.00 of advertisement B, the probability of it being clicked is way more higher than B and it computes that it will earn more if it displays advertisement A in that certain page. It might be possible that for 100 pageviews, advertisement A can get 11 clicks (earning Php 11.00) and advertisement B can get only 1 click (earning Php 10.00). Therefore, if you block advertisement A, your earning dropped to Php 10.00 to a potential of Php 11.00.
As a summary, Google’s algorithm is already so advanced and it already ensures that it can get the maximum revenue from the advertisement from any page. If its algorithm dictates that this advertisement will earn this page more, then why will Google display another advertisement. Therefore, if you are blocking the ads that Google thinks can earn more from your pages, then you are technically lowering the potential earnings of your pages. It is actually counter-intuitive if Google will not maximize its earnings so fighting against what the algorithm dictates to be the best advertisement to be displayed in the page is fighting against maximizing your own revenue.
And one reason why it is called “Competitive Filter” and not “Blacklist Sites.” The real use of that is to remove competing sites being advertised in your pages.