In many cases the main source of revenue for a blog is advertising or the placing of ads. However, a knowledge of when to place ads on your blog can make a huge impact on the authority and growth of your blog.
There are different forms of blog advertising. The following are the most common forms of advertising on many blogs.
- Pay per click (e.g AdSense, Chitika, and Bidvertiser)
- Affiliate Marketing
- Private Ads
- In Text (Kontera and Infolinks)
- Sponsored Posts
- CPM advertising.
When should you add advertising on your Blog?
When starting out a blog, do not make the mistake of flooding your blog with lots of ads from different advertisers. This will annoy many readers and you will be left only a few readers who will make you a few cents.
This will end up discouraging you. Concentrate more on content and remove all the ads. This action will bring in faithful readers who love to visit a blog that:
- Has nothing to distract them from the content
- Loads quickly
- Provides them with useful information.
This will fetch you are huge reader base that will amount to close to 2500 readers per day. You can now add a little amount of ads on your blog only at strategic positions. Within a month, your blog will become one of your main sources of income. This reason for this result will be the ratio of adverts on your site to the number of readers who visit your site.
The reason why advertisers place ads on a blog is because they want to showcase their products or services to customers and they will be willing to pay if a publisher or blogger can send a good amount of buying customers to him.
If right now you have a blog which is a week old and you are receiving 10 visitors per day, this will not be valuable to an advertiser. Let us analyze how the different advertising methods listed above will convert for a blog which receives about 50 to 100 daily visits.
Effect on Pay Per Click (PPC)
Let us examine Ad sense which is the best PPC advertiser online. Ad sense will pay you if a visitor clicks on your ad. From experience Ad sense will pay a minimum amount of €0.01 ( Euro) per click and an average pay of usually between €0.05 to €0.20. Sometimes, the pay may be more which is usually rare as the ads with the highest pay are mainly displayed on the search results of Google.
Assuming you are paid €0.20 per click and your blog receives 100 visitors per day. With an advert of 336×280 above your content, you should expect a CTR of 3% (as a reasonable figure). This means you will receive 3 clicks each day and receive about €0.60 per day which amounts to €18 per month.
You also need to put into cognizance the fact that when you create a blog, most of your readers will be people who know you already and they will be the same individuals who will visit over and over again and they will not always click on your ads. Worse still, these individuals may find your ads to be annoying. I guess you will not prefer to have a really slow growth and discourage lots of readers for a meager €18 per month.
An advantage which private ads have is that there is no middleman commission. You bargain directly with the advertisers and you are paid for the duration of the ad. Let’s assume again that you receive 100 visitors per day. How much do you think an advertiser would want to pay per month to place an ad on your blog? That would depend on your blog niche. A blog about jerseys for hockey fans can get some ads even with that number of daily visitors because it is a small niche. However, a blog niche on new mobile phones may never get private ads with 100 visitors per day because there are many blogs out there which offer better opportunities and deals for the advertiser.
A private advertiser will only advertise on a blog if that blog can send a good amount of customers to him.
Effect on In Text Ads
Infolinks is an awesome way to monetize a site that is performing well already. I however would not advise its use on new blogs. Intext ads usually have greater click through rate than Pay Per Click ads. You can get up to 10% click through rate on Infolinks. This is only useful if your blog receives a large traffic as In text Ads receive less pay than Pay Per Click ads.
Another vital point is that In text ads usually open their landing page in the same tab. Hence each time a visitor clicks on their ads, it is a though you are sending the visitor away. That visitor may have subscribed to your RSS feed but has been deprived of the opportunity to do so.
If out of 10000 blog readers, about 500 or 1000 of them leave, that would be a fair amount. But if out of 100 readers 10 are redirected, that would be huge.
Effect on CPM
With CPM ads you are paid when the ads are viewed 1000 times on your site. So you will still be paid even if your readers to not click on it. You may have heard that some CPM networks pay $1 to $3 per 1000 impressions, isn’t it? What they are not telling you is that this is the highest amount you will be paid for every 1000 impressions. The average amount is far below the quoted figure and it depends on the referring country of your visitors.
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The average payment for CPM ads is usually about $0.50 per one thousand impressions except your blog is very popular with hundreds of thousands of views per month.
If your blog receives 100 visitors per day, you will receive $1.5 per month at the expense of a large amount of potential subscribers who are turned off because your blog is filled with completely unrelated advertisements.
CPM ads are only beneficial to sites with huge traffic with a minimum of 5000 unique visits per day.
From the foregoing, it is easy to see that it is a wise move to first develop your blog, increase your content and then think of monetization later. Each time a newbie in blogging raise the question about monetizing a blog, my response is that every great work begins with the objective as priority and as it applies to blogs, it has to provide valuable content to readers, later on monetization comes into the mix.
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