Really like the simple formula you use and will be definitely downloading the CrankyAds Plugin! Interesting post that gives a good insight into generating advertising revenue from a website. I find I can still make good profits from small sites with low traffic by promoting high commission physical products. The key is to target the right type of keywords that are very focussed to help get good conversions. Just goes to show there a plenty of ways to earn from any particular website depending on a number of factors such as design, content, visitors and others that need to be taken into account.
Yaro, Thanks for this very simple formula and congratulations on your Web success. We appreciate your not keeping this a big secret and not requiring a Ph. D to figure it out. I have had a reputation for underpricing myself forever. I think I might have found a good set of rates for my PR5 blog about making money online:. I also offers rates for a month, 6 months and a year, if you take out 6 month or a yearly plan then you get a discount. In this case selling text links is likely your only option, and of course you risk a google penalty.
Can you explain why putting a text link in a post would risk a Google penalty? Or is it just if you are selling the link? Dean, am I to understand that text links are less expensive? Is your 6 or 12 month rate discounted? You mentioned that you advertised, what form of advertisement do you use? I really liked that last tip about not under-pricing. Thanks for the good post. This is one of the most useful posts I have read about blogging so far.
I just started receiving sponsorships, and it was hard to put a price on everything. The sponsors I have were pleasantly surprised at how low my ads were — who knew? I am thinking about starting my own blog.
How did you get started and how did you start receiving sponsorships? We plan a feature to allow publishers to decide whether to use no follow or do follow and charge accordingly. Logically speaking, you should be able to charge more for do follow since you pass on link juice, however by doing this you risk a Google penalty, something this site received in the past as a result of selling do follow links, which is why I switched to no follow for any paid for text links.
OK, since I am brand new to the whole starting a blog thing, a newbie, can you explain the difference of pass through and non pass through ads? I thought it was a good idea to charge a fixed price for every unique visitors? That way, if the traffic increases, bloggers earn more and advertisers have a higher exposure.
Not sure if fixed cost per month is better than CPM? A flat monthly fee is so much simpler and easier to make passive though. If your stats go up, then you start increasing your rates. Thanks for sharing your pricing guideline. I have just arbitrarily chosen a figure based on traffic to my site and a comparison of what some others charge on their blogs.
So happy I found your blog. Selling advertising is a new idea to me. Simpler than selling leads. Or getting paid pennies for clicks. That is a simple formula and it would be fairly easy to implement. Thanks for also sharing the conditions that would make it vary! Thanks for not only the formula, but the realistic discussion of rates within niches. Far too many bloggers undersell themselves. CrankyAds is great as my friend just started using it and his comments about them has been really inspiring.
Thanks for sharing such useful tips. Will definitely give CrankyAds a shot! Consider a print newsletter is like an oldschool version of a blog. Seems like you beat Pat to the bunch! Yes Jamie, it was a bit of coincidence. Pat just happened to start a similar series at the same time. Nice simple formula to arrive at the ad rate. Thanks for that. Yaro, great article and very helpful. I thought I was close to implementing an ad strategy until Google cut my traffic drastically with the latest algo change.
Well Google giveth and taketh away. But when my traffic comes back, ad traffic will be one of my main monetization models. I heard that the three areas that pay the most are: Relationships, health and money related sites. Do you know if this holds true? They, along with irrational passion niches like sports, gadgets, shoes, other consumable goods, etc are the most valuable niches in terms of money being spent.
We may eventually have other options, but not for a while yet. Thanks for a well detailed great post Yaro. I have just added the plugin. Lets see how it goes! Have a good day! You did a pretty good job Yaro, and every blogger will thank you for that. Just installed Crankyads on my site tonight, easy and simple install! I guess I have to figure out a way to solve the challenges of Danish VAT in the system, as VAT must be added to all European buyers, whereas advertisers from the rest of the world should not be charged.
Thank you Yaro, useful insight. In your formula you mention visitors, however, some ad networks consider only pageviews. On the other side, the site has daily uniques. How do you factor these variables? You must be running a forum or something like that. In your situation the answer still comes down to results for sponsors. Thank you for your answer. It is a site with photography tutorials. I write the best content I can, use internal links, related posts and popular posts, with no tricks such as multi page posts and it brings those pageviews.
In my case, would rotating different ads inside the same space a better way to exploit the high number of pageviews? I remember having stumbled upon some plugin allowing to do this. If you can customize ads to that specific a target then sure, it can help. Personally I prefer if you have a site-wide sponsor for simplicity sake, but it really depends if that is possible and the best choice for your niche.
Currently, I just use google adsense but would like to explore other avenues of revenue. Thank you for this information. I have been trying to decide what to charge others to advertise on my site.
I did not know where to start. I have used myself another formula, that consisted in asking for 1 euro each page views. I started with It was about Whenever my website increases traffic, I increase cost. I use to do it each 3 or 4 months or whenever a new sponsor arrives to the blog.
An no complains!!! Advertisements rate vary a bit depending upon the banners placement on my blog. I will make a positive review on my website. And your formula for charge advertising is simple — I will try it. The one thing that upsets me is that the formatting means that it is a mess when viewed on my iPad … maybe it is related to the theme your using?? So thank you for bringing a bit of sanity to the internet…and for all your really useful free info, of course.
I usually count total visits that day, not specifically unique visits as that can vary depending on what timeframe you do your count for uniques. So we take a look at the pages on our sites that have top search positions, look at the monthly traffic for those articles and then go out and directly target advertisers who are bidding on the keywords we rank for, offering them a better rate than they can get from PPC.
Also remember to build in an exclusivity premium on these type of deals. Really interesting post. Saw you at the hive in Brisbane a little while ago now and get your emails. I have set up a web-site — angermanagementlocal. Thank you for the formula.
I then increase the price for as long as there are still advertisers taking me up on the rates until I find a plateaux where the demand slows — this is then the highest price the market will bare, and the optimal price for my ad spot. To make money by this method, you need massive traffic… so think the targeted traffic for any blogs!
Thank you for posting this, Yaro. Thanks for writing this useful post about advertising on your blog. Advertising ad space and what should be reasonably charged, has been a subject that I have found difficult to get a handle on.
I have just removed all my advertising from my blog. Most banners and box ads were my own products. It really depends on your goals. I have been a freelance writer for the past 10 years. I have about 16, articles mainly academic and on different topics and subjects as well. I want to transfer this content in a single blog to make some money from the ads. Can it work? What can I do? Can I make some cash?
How can I go about this? I will appreciate the response on this. Thank you, Vince. Plus, if I could clarify that your formula is indeed in US dollars and not Australian dollars…? Very useful information.
Hey Yaro — great stuff. Yaro greate site, with lot of motivational real examples. Selling direct ads on your website is good, but just I think that for a starter adsense is a much better option.
Easy to manage although you get less. Tanvon Malik. I have set up adsense and used it for a year. I believe this information is vital as I am now begining to sell advertising space on my blog. I am glad that the information you have provided will guide me on the pricing. Great article! I use a similar formula to calculate monthly costs for banner ads that I sell direct to advertisers. However, I am working on some actual sponsorship packages that would include banner ads, as well as a great deal more exposure and acknowledgement of the sponsor in all areas of my site.
Sponsorships would only be offered to non-competing companies as well. Great information Yaro! I just wondered, is the best way for payment through a PayPal account or is there another way to handle payments?
Good luck with your site! Awesome explanation of all the intricate details Yaro. I was just approached by someone to place a text link ad and I found your post to be super useful. It answered all my doubts. Thanks a lot! Finally an equation! Thank you for actually giving us something concrete. Again, thank you! I have no experience with video ads. How much can I expect from a Google video ad versus a standard ad?
Is Google the best show in town or are their better ad servers with better payments? And also, do they have to watch the whole video? Thanks for any help. However, working with a professional content marketing agency will save you time and may produce better results due to the expertise of the agency.
Content marketing services include strategy development and planning, creating, distributing, tracking, and promoting content. So how can you choose which channels are most effective for your business, and how much should you invest in each?
Essentially, it all comes down to your target audience and budget. No matter what kind of online marketing you choose and no matter what your budget is, it's important to think strategically and always keep your potential customers in mind. For most businesses, a combination of multiple strategies will help you get the best return on your Internet advertising costs. A professional digital marketing agency can help you create the ideal strategy for your company. If you want to use the Internet to advertise your business, choosing and budgeting for the right channels can be challenging.
WebFX can help. Call or contact us online today for a free evaluation. Loading results An error occurred when getting the results, please click here to try again or modify your search criteria. Sorry, no results have been found, please try other search criteria. On your website, performance measurement page, or platform, check the total number of visitors and page views. One page view stands for the number of unique visitors who opened the page. Some pages within one website perform better than the others, so different pages can bring you different amounts of money within the same period.
If a page contains 3 ads, you would get 3 ad impressions per 1-page view. The more impressions or other action, depending on your pricing model you get, the higher are potential profits.
This number can vary greatly depending on your niche and audiences - some marketers claim it's enough to have unique daily visitors, while others argue this number can be as high as per month. Your final number will mostly depend on the profits potential advertisers can get from your placements - for luxury products it can be enough to advertise online to that one targeted high-paying customer, while mass-market brands can value the quantity of your traffic over its quality.
Potential advertisers want to reach their target audiences but if the amount of traffic on your web pages is still too low to start monetizing, you should first grow your website to ensure it will be seen among, for instance, Google search engine search results. The high search engine ranking can be achieved by link building, writing the blog, or getting a promotion on other resources with guest posts, etc.
Apart from traffic, rates for websites can vary greatly depending on their content, as this is the main value you offer to the users. This can include blog posts and related articles, photos, videos, music, games, discussions, and many other formats. The more target specific high-quality content you produce, the more value users can get from it.
Narrow topics are also valuable in terms of uniqueness. If your content provides in-depth answers to a rare, but well-defined question, it can potentially bring more value than some short generalistic column, especially when it comes to the highest-paying industries. The more unique your content is, the more are the chances to grow a website and start getting profits faster. Remember that choosing prohibited categories as the main topic for your content will most likely prevent your website from entering most monetization platforms and solutions.
Such categories include, for instance, spyware or malware, pornography, illegal weapons and drugs, gambling, casinos, alcohol and tobacco, hate speech, and violence.
Another important thing to consider is the buyer's journey. Of course, it is usually up to the advertiser to calculate these things, but understanding your audience as potential customers can significantly add up value to your digital assets without spending too much additional effort or resources.
If the users are coming to your pages when they are about to finish their decision-making process regarding a purchase, such impressions will be considered more valuable to the potential advertisers.
Product reviews or comparison services websites convert specifically well and typically have higher online ad rates. Thus, the more information you can provide regarding people who are about to encounter an ad, the higher are the website ad prices you can count on. Most marketers want to know exactly who they are targeting and what kind of message this target audience persona is going to react to.
Higher incomes, stronger purchase intent, or online shopping history makes the user more desired and valuable. Things like age, gender, and marital status can be also important for online advertising as they significantly help to narrow down the audience and understand your customers better.
Local advertisers would naturally prefer viewers from the same location, as getting their message to other people would be simply irrelevant. At the same time, traffic from some countries is considered more valuable than visitors from others.
In general, users from English-speaking countries and those with higher spending power are getting much more attention from the advertisers, which in turn will affect your revenue. Human traffic can also be fraudulent, as it may include malicious activities like online ad stacking, pixel stuffing, click farms, domain spoofing, and many others.
In the light of loud privacy and copyright scandals, the need for privacy and transparency has become important as never before. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Alternatives Emerge. CPC vs. The Bottom Line. Article Sources.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Affiliate Marketing Definition Affiliate marketing allows you to earn commissions for marketing another company's products or services. What Is an Impression? An impression is a metric used to quantify the views of an advertisement or a web page.
Discover more about impressions here. The Ins and Outs of Banner Advertising Banner advertising refers to the use of a rectangular graphic display that stretches across the top, bottom or sides of a website. What Is an Advertorial? Partner Links. Related Articles.
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