Very simple explanation

As an example

Each advertiser pays $1.50 per ad per day.

Google keeps 50 cents so that leaves $1.00 to be split between publishers

When you started there were 10 publishers publishing ads, and each time someone clicked you earned 10 cents

later in time there were 20 publishers publishing ads, and each time someone clicked you earned 5 cents.

Now there are 100 publishers publishing ads, and each time someone click you earn an astounding 1 cent.

Hope this helps!

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