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Website Advertising Revenue Overview

This site helps website owners learn how to serve ads on their website and earn revenue when people see or click on those ads.

Focus on Quality Content and Building Traffic to Your Website

For website owners, the most important thing to focus on is your website content. Good content will create interest. Interest will create traffic, and traffic will create the opportunity to put advertising on your website to generate income. Generally, the more people you have visiting your website, the more money you will earn from the advertisements on your web pages.

Website Advertising Mechanics

How do you get the ads on your website and on your web pages? In general, you will be provided with a small snippet of html or javascript code that goes on the pages of your website where you want the ads to run. This code will be provided to you by the advertising provider. Your biggest challenge will be deciding which advertising network/company to work with and where you're going to place the ads on your pages.

Website Advertising Revenue Models

There are a bunch of different ways to get paid for putting ads on your website -- each way is called a revenue model. It just means what you need to get your web visitors to do before and advertiser is willing to pay you.

CPC Ads - "Get Paid When Someone Clicks Your Ad" - CPC stands for "Cost per Click". This means that the advertiser will pay you everytime one of your web visitors clicks on the ad. These are generally called "text ads" or "contextual ads". You don't get paid when someone lands on a web page, only when they click directly on the ad. The amount that the advertiser pays you, when people click, will be determined by the subject matter of your web page and/or the keyword that may be associated the ad. Typically, you'll make between $.05 to $.50 everytime someone clicks on one of these ads -- but you can make much more per click if your subject matter has keywords with high prices associated with them. More on this later.

CPM Ads (Banner Ads) - "Get Paid When Someone Lands on a Page with Your Ad" - CPM stands for "Cost per Thousand" (M = "Mille" = "one thousand" in Latin/French), it refers to how much you get paid for every one thousand page views. For example, if you put an ad with a $2 CPM (a pretty good price) on a web page and you get 5,000 page views, you'll make $10. If you get 500 page views, you make $.50.

CPA Ads - "Get Paid When Some Completes a Specified Action" - CPA stands for "Cost Per Action". These are ads where you get paid after the web visitors first clicks on the ad and then completes some task. The task could be filling out a contact form, signing up for a newsletter, or buying a product online.

How Much Can You Make with Website Advertising?

This is a good question, but you must be patient if you are just starting this journey. Again, money will come more from focusing on content, as opposed to advertising. It is highly unlikely that you will make a ton of money if you are just beginning. Most beginners start out using programs like AdSense from Google, which is a form of CPC ad -- you make money when someone clicks on the ad.

Here's a typical CPC revenue example: Let's say you have a website and you put CPC ads on all your pages. You site is visited by 500 people every month. Each of those 500 people looks at 3 pages every time they visit. That's a total of 500 x 3 = 1,500 page views per month. If people CLICK on one of your CPC ads 2% of the time (called the "click rate" = CTR) you'll see 30 clicks in a month. If your ads generate an average CPC of $.20 per ad, then you will make the following in a month -- 30 clicks x $.20 cpc = $6 of ad revenue per month.

Website Advertising Providers

There are literally hundreds of places to get ads for your website. The most commond come from companies like Google, Yahoo, Microsoft, Adbrite, and Kontera.

Website Revenue Yield Optimization

There is a new cluster of specialist companies on the web whose goal is to optimize revenue for web publishers -- these are called "yield optimizers". What they do is manage the ad inventory of a web publishers by serving the ad with the highest price from the publishers direct sales force, ad networks and exchanges, or from demand-side platforms. Companies in this category include:

What's New

More information and updates coming soon.

Latest Headlines

Growth in Search Ads Problematic for News Sites- PCMagazine - March 15, 2010, the Pew Internet & American Life Project have concluded that a greater percentage of online advertising revenue is going to search engines than to website publishers.

TV Shows Bring Their Ads Online- Wall Street Journal - July 16, 2009, The WSJ has an article today about the Web-TV trial putting more tv shows online for cable subscribers and how the advertising mechanics may change.