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Now it is possible that the targeted traffic didn't click the ads and someone else did but not likely. To get better paying clicks you have to meet a few Google guidlines which are best understood by explaining how Adwords works.

An advertiser using Adwords allows Google to manage what sites it displays the advertisers ads on. An advertiser wants conversions and doesn't want an ad appearing and getting clicked on a bunch of sites that aren't likely to convert. To increase the advertisers ROI Google instituted smart pricing which basically states that they will charge less for clicks that are less likely to convert and more for highly targeted clicks.

A crude and simplified example of how this works.

If someone queries Google and finds my site using the term "make money online" and then clicks a Payday Loan ad, is this targeted? From Googles point of view this click would be considered less likely to convert as there is no connection between what the visitor was searching for and what they chose. In short if one of my "make money" searchers had clicked the payday loan ad I wouldn't have received the high payouts. Conversely you can see direct relevancy and how a searcher looking for "payday loans" would be more likely to convert for the advertiser. In this case Google charges the advertiser full price and I get top CPC by providing a highly targeted visitor to the advertisers site.

If this is confusing just think in terms of a relevancy trail. If everything is relevant then you get paid more and if you have people dropping in from stumbleupon and clicking the odd ad you will get paid pennies because that type of traffic is not targeted and is not relevant to the ads clicked. Large amounts of social traffic also bugger up your CTR and invariably if you draw social traffic you will be "smart priced" by Google and only paid pennies for all the Adsense ads. This is the reason most web 2.0 or A-List style blogs don't make any money with Adsense - they don't draw the right type of traffic and draw lots of the wrong type of traffic (from a money making standpoint only).

To make money with Adsense you only want large amounts of "targeted" traffic and basically nothing else.

The shot below lists the latest keywords or queries used to find my blog on the search engines. 90% of my total traffic comes from Google and these are the typical terms used to find me.