This ad appears on my site day after day and it converts well. I banned it from my blog a week ago in order to see how well it performed. The ads that replaced it paid just as much or more per click as this ad but I received 60% less clicks. Meaning I made much less money by not having this ad on my blog. In case you are interested the ads on my sidebar pay more per click than the top ad but don't get a fraction of the clicks. When I banned this ad it was replaced with an ad block containing multiple ads.
Out of curiosity I checked the Adsense ads on my main competitors sites just to see what kind of ads they were getting. They all show multiple ads in their ad blocks. My ad blocks are usually only a single ad. Guess which gets a better conversion? The ads my competitors get are the ads I got when I banned the Gerber Ad. They don't produce anywhere near the same income.
Needless to say - I unbanned the Gerber ad and my revenue returned to normal.
So what does this mean?
It means that Google will give the best performing ads to the best performing publishers. The advertiser gets charged less and gets his ad placed on the best blogs for the keyword. The publisher gets less CPC but gets a lot more clicks. It's a win/win for both parties.
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