The Value of Adsense ads to Web Site Publishers

Many people use Google Adsense adverts on their sites to help pay for the hosting costs, and some websites can generate a good income through advertising once the number of visitors starts to increase. Today more and more people now wish to use Google Adsense, and other affiliate schemes, to make money from the internet.

As the internet has grown and matured, and security has increased, people now feel far more confident in making purchases on the internet. This has lead to a growth in advertising on the internet, and many publishers wish to get in on the action. Whereas non-web advertising is generally restricted to magazines, newspapers and television, anyone can buy a web domain, build a site, and start publishing adverts along with their content.

One thing to think about if you are planning to build a new site for adsense is what pays best. I started out with adverts on my Health, Fitness and Relaxation site, and it was only after adding adverts to this site, that I realised there is a large difference in how much an advert pays. It all comes down to the costs of the advertisers using Adwords. Some “keywords” cost more to an advertiser than others, so therefore if you publish a web page or site on a topic with higher priced keywords, it will attract adverts with a higher value. However, generally the higher the price of the advert, the more competition that topic has, and therefore the more difficult it is to promote your site.

Adwords provides a tool to estimate the cost of keyword advertising, so you can get an idea from this tool how much money you will receive from adverts placed on your site:

https://adwords.google.com/select/TrafficEstimatorSandbox

Just type in the key words your site is based on and see the prices of the Adwords clicks. e.g.

  • bruce lee $0.18 – $0.30
  • plasma $2.63 – $3.76
  • seo $2.70 – $3.92
  • insurance $13.27 – $19.10

So if you got 10 clicks a day from a site on Bruce Lee, you would receive a percentage of about 2 dollars, but 10 clicks on a site selling/reviewing plasma screens would receive a percentage of 30 dollars, and 10 clicks on insurance would receive a percentage of 150 dollars a day. I am not sure what percentage of the advertising cost Google takes and what the publisher gets, but it may be around 75% to the publisher (although it could also be considerably less). There is of course more competition in SEO, plasma screens and insurance than on a lot of other subjects. So chosing something that you can write a lot about, something you can promote, and something without too much competition is the key to making some money with advertising in general and Adsense specifically. SEO is hard, fitness and exercise is easier, but less cash comes.

I think that to be successful you need to find niche a market, but not something so niche that no-one visits. So a web site dedicated to turnips may be easy to promote, and you may be able to corner the market within a month or two, but profits would be very low. Starting a site on SEO or insurance now may be close to impossible due to the immense amount of competition already in existence. So search around, chose some topics that truly interest you, then have a look to see what costs the most to advertise on Adwords.

Like any business, advertising is a numbers game. The more people that visit your site, the more people likely to take an interest in your adverts, and the more money in advertising revenue that you and your web site can make. And how do you increase traffic without increasing costs? SEO (search engine optimisation) is the key to driving traffic to you site of course, i.e. receiving visitors from Search Engines (also known as organic referrals).

Like any business, making money through advertising requires you to research your field, understand your competition, utilise the best tools for the job, and keep one step ahead of the competition by publishing the latest news, reviews and gossip first, and getting it listed first. This requires a lot of work, so like any area of business, the hardest working people generally are the most successful. Work hard, and be successful.

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