I don't understand why I have been getting more hits and less money. Why is this

That is pretty normal since smart pricing comes into play that change the earning per click.

http://www.webmaster-talk.com/google...e-changes.html

http://www.webmaster-talk.com/google...iced-this.html

http://www.webmaster-talk.com/google...ue-halved.html

Have you used your competitive ad filter to remove MFA sites and other sites that would appear to pay low per click? Using the Google Adwords Traffic Estimate tool you can get an idea what people have to pay per keyword.

Have you used your competitive ad filter to remove MFA sites and other sites that would appear to pay low per click?

Help! What are MFA sites, please???

"Made for Adsense". Sites with little or no original content that are usually scraped from other sites and there just to make a few extra bucks off of Google Adsense clickthroughs.

FYI, Google discouage publisher to use MFA site by disabling their Adsense accounts.

Low payers are targetting you, better filter them the right way. But, i am not sure how do you find people who pays low and who pays high.

IMO, not all visitors are used to click those ads.. that's why you didn't get that much revenue..