Here is another way you can raise the cost per click (CPC) of your Google AdSense ads:  Don't ever, ever, ever use the Competitive Ad Filter. AdWords advertisers are competing in the auction to dsplay ads on your web pages. By allowing more advertisers to enter the auction, you raise the potential CPC of each ad spot. Using the Competitive Ad Filter reduces the number of auction bidders and lowers your potential CPC for each ad. 

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You might be tempted to use the Competitive Ad Filter for two reasons:  To remove ads that compete with products on your website or to remove unrelated ads.

If you are worried about competitive ads then you probably shouldn't even be using AdSense in the first place. AdSense ads will take your users away from your site entirely, and a few cents or a few dollars per click with AdSense probably isn't worth losing customers who might have converted to sales on your website. This is your decision, but most AdSense ads will probably be related to your products, and therefore competitive to your own sales.

Now if you are trying to use the Competitive Ad Filter to remove ads unrelated to your content, you should really be using Section Targeting instead of the Competitive Ad Filter. Take a look at the AdSense Section Targeting article I wrote if you aren't sure what that is. By using Section Targeting instead of the Competitive Ad Filter, you will effectively remove unrelated or irrelevant ads without cutting out the competition in your ad unit auctions. After you implement Section Targeting it will take about two to three weeks before Google begns to actually target your site better, so be patient and wait for your ads to become more relevant.

So when should I use the Competitive Ad Filter?

{cbauthor}Never. In my personal opinion, I would suggest that you avoid using the Competitive Ad Filter at all costs. If you want the highest CPC possible, you must raise the competition among bidders for your ad space, and you must keep as many bidders as possible. Properly utilizing Section Targeting will remove irrelevant ads, and if your site sells or promotes a certain product then you probably shouldn't be losing customers for AdSense ads.

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