What you have to understand is that pricing per click on the same keyword varies from country to country, both for the merchant buying the click and for the person clicking on the ad. Merchants from any given country almost only always compete with merchants from the same country. It would be pointless to show an ad for an American computer network company to someone seeing the page in Pakistan, and the Pakistani merchant doesn't need Australians clicking on his ads either. He cannot serve them.

If you and I are both looking at the exact same page at the same moment, we are both going to see different ads. Ads that I click on will typically pay the publisher more than the ones that you click on.

If you want to grow your income, you have to take a look at is where your traffic is coming from. If your traffic is largely from the USA and so are your clicks, then this will be the highest paid traffic that there is. If it is coming from Pakistan, it's probably going to be amongst the lowest. As the amount of traffic and businesses use the Internet in Pakistan, Pakistani merchants will begin to pay more for ads and ads that are clicked on in Pakistan will net the publisher more. In the meantime, if you really want to pump up your income, aim for visitors from the USA, Europe, Japan, etc.

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I don't think that cost per click is different from country to country.

Maybe you need to try out Adwords to understand this. You'll see how an ad in Adsense actually get there ...

Every advertisers clearly select his maximum bid for their ads. If you set your maximum bid at $0.50 per click, most likely you will pay $0.50 per click. No matter who clicked on it, where ever the click happened.

And as a website publisher, if that ads appear in your website, no matter who clicks, where ever that happens, you will get a share of the same $0.50.

I don't know what's Google's cut for each ad. But I believe it's the same for all ads. It's unethical for Google to keep 50% of the revenue one time, and 80% at another time for the same $0.50 ad.

And yes, it doesn't make sense for local businesses to advertise outside their country. But if the advertisers never set Geo-targeting (targeting which country to show the ads), his ad will appear in related websites everywhere. And when targeted keywords are searched in Google.

And yes, when we both look at the same web page at the same time, there are chances that we will see different ads ... depending on ...

- where you are goegraphically when you opened the website
- has an advertiser recently maxed-out his daily costs setting
- did the advertiser set geo-targeting
- are there 2 or more ads that deserve the same place - maybe will be rotated
- did a new advertiser recently enters
- did an old advertiser recently stopped his ads
- etc ... Google knows best ...

Note: Google Adwords do optimize your max bid to best top place. Even if you max bid is $0.50 but Google sees that you can get first place for only $0.40, you'll be charged $0.40 a click.

And getting into top spot of Google Adwords is not solely on how much you can pay. The CTR of your ad also plays a role in this. So the top ad is not necessarily the most expensive ad. Google tries to put the max bid and most relevent ads top (with CTR as reference).

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Khairil Iszuddin Ismail