This is another somewhat advanced AdSense tip. It might be a little hard to understand but it is very simple to implement. The tip is that you can raise the cost per click (CPC) on each AdSense ad unit by enabling both Text Ads and Image Ads on each ad. 

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As explained in one of my other AdSense Tips articles, Google AdSense is an auction-based system. This means the more ads you allow to compete in each ad slot, the higher the CPC and the more you will be paid for each click. By allowing text and image ads you are opening the auction to more AdWords bidders.

For instance, in a lot of cases the same text ad will be displayed whether it was competing against extra image ads or not. But since there was more competition for the ad real estate, there is a higher chance that the ad is now paying closer to the AdWords owner's maximium bid amount, meaning that the same text ad must now pay you a higher cost per click.

{cbauthor}See how that works? It's just like an eBay auction. If Joe bidder is willing to pay $10 for an item but you only allow a few other bidders to compete, Joe might win the auction for only $2. If you were to open your auction to more bidders to raise the competition then you could force Joe to pay closer to his maximum bid of $10 to still win. Or another bidder might be willing to pay you even more than Joe's $10.

Google AdSense and AdWords are an auction-based system. Once you fully understand this fact then you can really start to maximize your AdSense profits by taking advantage of the competition created by the AdWords advertisers bidding on your ad space.

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