Over the last 1 and 1/2 years I have noticed a decline in my adsense earnings of around 30%. Now I'm not one of those to instantly blame panda, penguin or any other types of update from google. I much prefer to work out why things change and what if anything I can do to rectify that 30% drop.
Firstly the bad news, it isn't possible to rectify the drop in earnings without increasing the number of visitors. Why isn't it possible? Because the British Pound has strengthened against virtually every currancy in the world including the Dollar, which has adversely affected my earnings.
Most of my visitors are from Indonesia, Japan, the USA and the Philippines, with 1/3 of overall earnings specifically from Indonesia. In 1 and 1/2 years the pound has changed against the Indonesian Rupiah from roughly 14500 rupiah to the pound to 20400 rupiah to the pound. A huge change that directly affects my earnings. The problem is that the average price per cpc advert an Indonesian company has to pay hasn't increased inline with the exchange rate.
Now lets look at the Pound to Japanese Yen. At the beginning of 2012 one pound was worth roughly 138 yen, it is now closer to 170 yen. Not quite as bad as the rupiah but still around a 23% drop.
My long term forcast is that within 5 years the currency market will start moving back in my favour. Until then, on with the day job.
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