We think it's important for all publishers, both new and veteran, to understand the role they play in our ad network ecosystem. While AdSense is designed for publishers to monetize their websites with Google ads, it's also designed to extend the reach for our AdWords advertisers, providing them with ad real estate whose value is close to that on Google Search results.If your website performs well for advertisers, there may be increased competition among them to fill your ad spaces. This means we'd have a wider variety of possible ads to display, so the ads you see on your site may be more relevant to your site content and your users' interests. This may lead to more clicks from your users, more placement-targeted campaigns geared towards your site, and increased advertiser bids. Overall, you're likely to earn more revenue with your site if advertisers are generating conversions and receiving quality leads from your site.
On the other hand, if your website performs poorly for advertisers, they may be less inclined to display on your site. This means that the ads our system displays on your site may not be as relevant to your site content and your users' interests, leading to fewer clicks and decreased advertiser bids. As a result, you're likely to earn less revenue with your site if advertisers are performing poorly.
To maximize the value for advertisers displaying on your site, we recommend focusing on developing a high-quality site with original content that's valuable to your users. For more information, please consult our program policies and Webmaster Quality Guidelines for reference.
Link - from Inside AdSense
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