Online Advertising:
Online advertising is what we will cover on this page....For more about CPM, and other advertising terms, please visit KookyPlan guides to advertising , Marketing , and Advertising Business Models
Basic business model for blogs: sell advertising, hopefully not just google ads..but specialized ads for your industry. Sell ads, and attract an audience by advertising. Model = make more money with ads on your site, than you spend advertising your site.
Table of Contents:
How much should I charge for advertising on my site?
this is the most important question that most bloggers first ask: what is advertising space on my site worth? There is an interesting guide to answer that question here.
In summary: CPM is "cost per mile" (the latin word for 1000). Normal blogs can get around $1.5 CPM for a 1.25 x 1.25 ad size at the top of the sidebar. So, if you have 200 visitors per day * 30 days = 6000 visitors / month * $1.5 /1000 = $9 for that ad per month. If the blog gets 1,000,000 views per month, then the ad is worth $1,500 per month (you can do the math). "TechCrunch charges a similar rate ($10,000 for 6,5 million page views monthly, converting to a CPM of $1,53)". See full discussion here.
Note: the more "narrow" your target audience, the higher the CPM can be (but the smaller your audience). Broader audience sites such as MySpace might get CPM less than a dollar.
Popular Providers:
Introduction to Website Advertising
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Context Sensitive
- Context Sensitive Ads index the individual pages of a website for keywords and then serve ads tailored to those keywords. The ads served with one post are often completely different from ads served with another post because of the keyword indexing. Because of the indexing component, Context Sensitive ads are generally associated with search engines. It may be useful to review the information on Search Engine Optimization for Wordpress. This ad style includes Yahoo Publisher Network and Google Adsense.
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Contextual Ads
- Contextual ads are similar to Context Sensitive ads but serve ads based on broad categories, usually chosen at the time of signup, rather than indexing the page for specific keywords. They generally return similar results on all of a site's pages. An example of this type is Adbrite, which serves ads based on your sites category. These are not truly context sensitive as they do not change based on the keywords on a given page.
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Brokered Ads
- Brokered ads offer advertisers a way to purchase ads on specific blogs without dealing with each individual blog owner on billing and other issues. The broker offers you script to place on your page inviting readers to advertise on your blog. The broker receives a share of revenue from ad sales. These include BlogAds, which is an invitation only network, and AdBrite. BlogAds offers site visitors the opportunity to purchase ads on your blog and to search their network to purchase ads on multiple blogs. You have the option to approve or reject these ads. AdBrite offers your site's viewers an option to purchase advertising on your site, in addition to serving contextual network ads. You have the option to approve or reject these ads, too.
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Affiliate Programs
- Affiliate programs pay you for sales, leads or other actions taken by your site's visitors when they click on the ad. Amazon.com's Associates Program was one of the first affiliate advertising programs on the web. Larger affiliate networks such as Commission Junction and Linkshare combine multiple merchants on one site, making it easy to offer a variety of products while dealing with just one source.
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Text Links Ads
- Text Links are growing in importance as a Search Engine Optimization technique. Text links are generally valued based on the site's Page Rank and generally only feasible for Page Ranks above 5. Text link values are also reduced by having too many links on a page, so blogs with long blogrolls probably won't qualify. For more information, see Search Engine Optimization for Wordpress. You can sell text links directly or through brokers such as Textlinkbrokers.com and Text Link Ads.
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Tip Jars and Donation Requests
- Tip jars and subscriptions are not really advertising, but do produce revenue for some blogs. Examples of this are the Amazon Honor System and PayPal's Donation System.
Choices: Ad Revenue Models
There are different models for "making a sale" and revenue for website advertising. They include:
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Pay per click
- Pay you each time a reader clicks on an ad. Usually a few cents per click, though very highly valued keywords can bring $10 or more per click.
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Pay per sale
- Pay you when a reader clicks through and makes a purchase. Some of these are flat amounts per sale while others may pay a percent commission.
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Pay per lead
- Pay you when a reader clicks through and fills out a form, provides an email address, etc.
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Pay per action
- Generic term for any ad that requires the reader to take an action for you to get paid. Includes pay per click, pay per sale and pay per lead.
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Pay per impression
- Pay you a certain amount each time the ad is served. May only pay once per unique user.
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Pay per day/week/month/etc.
- Pay you a flat fee for the time period agreed, regardless of traffic fluctuations, click through rates, etc.
Ad Integration Methods
Advertisers have several different ways of including ads in websites. For all of these methods, the biggest concerns are style and validation. The ads need to work within your WordPress Theme and changes to the Theme can create validation errors. After adding a new advertising program, your first step should be to revalidate. Your next step should be to check your blog, preferably in multiple browsers to ensure that the HTML in use works within your WordPress Theme. The different ad integration methods include:
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Javascript
- Many ad programs use Javascript to serve the most current ad or to serve contextual ads. If the program's Terms of Service (TOS) allows it, consider placing Javascripts in external files and these other tips for Using Javascript. Javascript based ads require the reader to have Javascript enabled and many adblockers actually look for and block Javascripts.
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HTML
- HTML based advertising involves adding HTML tags and code to your site. This can disrupt your CSS and HTML, so be sure and validate your site after including the HTML ads.
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Flash
- Some advertising programs use Macromedia Flash plugins. Concerns with Flash include load time and, occasionally, validation issues. As with other techniques, revalidate after adding any Flash-based ad.
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Other
- Text links, which are really just simple HTML ads, are growing in prominence. Again, since these will be incorporated with your Theme, always validate your site after adding them.
Monetizing Social networks?:
see also:
Internet Traffic:
One of the first goals to increasing revenue from advertising is to increase traffic. See discussion above about CPM and the value of a large audience. But, what can you do to raise the # of visitors. some companies have turned to using Google Trends, and writing content directly for those trends...its a form of "gaming the system". Read more about it here: Some Big Sites Are Using Google Trends To Direct Editorial
Getting noticed - building your community
Market Size for online advertising
see report here: IAB Internet advertising revenue report
More
Ad delivery networks
Collective Media: A round of funding led by Greycroft Partners, in conjunction with iNovia Capital. Collective's online advertising network reaches 120 million unique users monthly on a wide selection of established Websites, including the largest aggregation of online news channels. read more
Video Advertising
Brightroll : helps large ad agencies and brands sell video ads across leading web sites, has raised $5 million from True Ventures and Adams Streep Partners.
The majority of websites that try to make money off of advertising start off by using a product from google called AdSense. This product is very simple to use, which allows individual websites to place ads on their site for very little effort. The drawback is that Google takes a good portion of the ad revenue (the actual amount is unknown.
Math:
assume $1 per click on each ad.
assume that 1 person in each 100 will click on an ad.
so, if you want to make $30,000 per year off of ads, you will need 30,000 x 100 = 3 million visitors in a year
The problem is that many ads pay significantly less than $1 per click.
Also, not every site is able to get 1 in 100 to click on the ads (many people find them annoying)
So, if the numbers are more like $0.50 per ad and just 1 in 200 click...
The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content (usually, but not necessarily, for free) and services (like email, IM, blogs) mixed with advertising messages in the form of banner ads. The banner ads may be the major or sole source of revenue for the broadcaster. The broadcaster may be a content creator or a distributor of content created elsewhere. The advertising model works best when the volume of viewer traffic is large or highly specialized.
Note: TV commercial advertising starts at $2.5 million for a Super Bowl Ad
Internet advertising still has along way to go!
Portal -- usually a search engine that may include varied content or services. A high volume of user traffic makes advertising profitable and permits further diversification of site services. A personalized portal allows customization of the interface and content to the user. A niche portal cultivates a well-defined user demographic. Yahoo
Classifieds -- list items for sale or wanted for purchase. Listing fees are common, but there also may be a membership fee. Monster.com , Craigslist.com, Match.com
User Registration -- content-based sites that are free to access but require users to register and provide demographic data. Registration allows inter-session tracking of user surfing habits and thereby generates data of potential value in targeted advertising campaigns. NY Times Digital
Query-based Paid Placement -- sells favorable link positioning (i.e., sponsored links) or advertising keyed to particular search terms in a user query, such as Overture's trademark "pay-for-performance" model. google, Overture
Contextual Advertising / Behavioral Marketing -- freeware developers who bundle adware with their product. For example, a browser extension that automates authentication and form fill-ins, also delivers advertising links or pop-ups as the user surfs the web. Contextual advertisers can sell targeted advertising based on an individual user's surfing activity. Claria
Content-Targeted Advertising -- pioneered by google, it extends the precision of search advertising to the rest of the web. Google identifies the meaning of a web page and then automatically delivers relevant ads when a user visits that page. google. For more information, click here Content Targeted Advertising
Intromercials -- animated full-screen ads placed at the entry of a site before a user reaches the intended content. CBS Marketwatch
Ultramercials -- interactive online ads that require the user to respond intermittently in order to wade through the message before reaching the intended content. Salon in cooperation with Mercedes-Benz
for more info: http://digitalenterprise.org/models/models.html
Links from KookyPlan:
Types of websites
Advertising online
Other money making online models:
Programming Languages
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