Things have been picking up lately, but overall July has been a pretty low AdSense month with numbers all over the place - it's not going to break any records. Best month for me was way back in September 2008.

For me also, inspiration comes from the $. Lousy earnings just make me think it is a waste of time, so why bother. I can use my time to earn money in other ways.

In the second half of July I've seen CTR jump by about 50% compared to the first half of the month.

It's been a strange year. January was a disaster. From February to May my average earnings per click was higher than now but CTR was low. June was horrible - low CTR and earnings per click.

CTR has been picking up recently but on average I'm being paid less per click than earlier in the year. Despite the recent improvement in CTR, July is therefore unlikely to beat May.

If CTR continues to climb and there is a revival in earnings per click, then I will be happy.

Your theory about interest-based ads could have some merit. The whole point of AdSense is that it is contextual. Interest-based ads aren't contextual - and neither are poorly targeted ads; geographic or otherwise.

I am in the camp that thinks interest-based ads are a bit creepy. After I've been searching for something specific and then see ads for that something specific on completely unrelated sites, it makes me think that someone is simply playing mind games with me.

It's a bit like supermarket psychology where goods are arranged in such a way - and certain goods are displayed in the check out lanes - so as to encourage people to buy things that they don't really need.

When I search for something specific, relevant ads for that something specific are fine at the time I'm searching. When people start playing mind games with me by displaying ads afterwards - when I'm looking for something else - it's an instant turn off. It's also very obvious what is happening.

Edit: Forgot to add - earnings this year still way, way down compared to May 2007 (my best month ever) despite then only having about 60% of the Page Impressions I have now.

June was best month ever by fourfold, until July which was 30% above that. Has dropped way off now of course, until I launch my next set of sites. But I'm happy.

May was the turning point for us in terms of eCPM. That was when we removed ads from other ad networks for the medium rectangle placed above the fold.

July, however, saw an increase in CTR from the previous months. Comparing it with June, our CTR increased by about 20%. Recovering nicely from the July 4 week slump that is typical of my site.

However, still 35% lower for CTR and about 15% lower for CPM compared to July 2009. Hopefully it will recover

I just wished it was back to 2006 -- my CTR has since fallen by 158% and eCPM has decreased by 62%. Those were the good days ...

I ex[experienced the same spike around the same time as you. However, today the situation has bottomed out with a vengeance in typical Adsense style.