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Advertiser A on the other hand gets rewarded by Google for its high quality score (its keyword and landing page are perfectly optimized - this equals a high quality score) and besides being charged less Google will only put the ad on the "best performing" blogs.

The best performing blogs are those that, like the advertisers landing page, are the best optimized for the keyword and have the most targeted traffic for the keyword.

This is a bit confusing so lets look at an example.

The blog you are reading is extremely well optimized for the term "make money online". The easiest way to know this is by looking at this blogs serp rankings. It ranks highly for most of the "make money" keywords. Now, even if it wasn't ranking well for the keywords the blog and posts are still optimized for the keywords. If the majority of your pages get the same ads regardless of the individual post topics then you have successfully optimized your entire blog for a certain keyword. If every page on your blog gets different ads then your blog isn't optimized for one topic. If you want the best performing ads for your main keyword then you have to optimize your entire blog for them and not just a few pages.

As a publisher you want Google to place the best performing ads on your site. To get the best performing ads you have to be just as optimized as the advertiser.

If you are reading this and you live in Canada or the United States then you see the best performing "make money online" adsense ad up top (above the fold) on this blog. If you live anywhere else then you see different ads - probably a block of four ads. This is because the advertiser has picked the location he wishes to advertise to. Only people with Canadian or American ISP's will see the ad. The advertiser does not want anyone else clicking the ad.