Google Adsense - Badly Hit by Financial Crisis?

Check out my eCPM:


I know. It's awful.

People, albeit fewer, are clicking on ads but the eCPM* is just shot. I really miss the days when 8 clicks could give me around $5-8. Seriously, what's happening to Google Adsense? Delivering ads with close to zero funding? Have funding for online ads really gotten this bad? :(

Sure, there are many factors behind this like Ad Relevancy, Traffic Source and of course, the Global Financial Crisis - But this is GOOGLE Adsense we are talking about. The supposed leader in the online advertising industry.

Anyway, for those who are wondering what eCPM is:

Cost per mille (CPM), also called cost ‰ and cost per thousand (CPT) (in Latin mille means thousand) , is a commonly used measurement in advertising. Radio, television, newspaper, magazine, Out-of-home advertising and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.

An example of computing the CPM:
Total cost for running the ad is $15,000.
The total audience is 2,400,000 people.
CPM is calculated as CPM = $15,000/(2,400,000/1000) = $6.25

Effective cost per mille (eCPM) is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).
[via Wikipedia]

I just hope things get better soon.



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