How much advertising money can a blog make?

$2-10 per 1000 pageviews is the answer i have come up with…but not all pageviews are born equal and it’s slightly more complicated.

http://upload.wikimedia.org/wikipedia/commons/thumb/7/7b/United_States_one_dollar_bill,_obverse.jpg/800px-United_States_one_dollar_bill,_obverse.jpgPicture 95http://alphabeticaprime.files.wordpress.com/2007/12/100_dollar_bill.jpg?w=201&h=90

 

If a website gets 1000 unique visitors per day, how much money, on average, will it make? at average click-through-rate per page view is 1.1% [can go up to 5% if very well done]
at average pay-per-click revenues for the site owner are 50% [can go up to 80% depends on the ads provider] of the price paid by the advertiser. Given that, average revenue per cick is 20c.
at average 1 visitor views 2.5 pages [can go to 30 if well done - see facebook]

now, we make the calculation and here it is:

1000 x 2.5 x 1.1% x 20c = $5.5 per day

The pay-off per click varies widely depending on what each advertiser decides to offer, based on the profitability of their products and their expected conversion rate (percentage of clicks that deliver a sale). Google is not saying what the average pay-off is, but our own experience after one month of running the program shows an average pay-off of $0.63 per click. We have seen clicks paying as little as $0.02 and as much as $3.00.

So, just for the sake of giving an example, lets say that your site receives 1,000 page views per day. If the 1.2% click-through rate and $0.63 pay-off per click that we have observed on our site hold true for your site as well, in a 30-day month you can expect to make:

1,000 x 30 x 1.2% x $0.63 = $226.80

Not enough to get rich, but a nice extra income nevertheless, that you can use to pay for your domain name and hosting costs, and then some.

Here’s links to a teenager that became rich and a handyman that makes $100,000 per year
http://www.fastcompany.com/magazine/118/…
http://www.naturalhandyman.com/

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San Francisco Chronicle

Bloggers find ways to profit

Sunday, May 30, 2004

Web logs, or blogs, which started out as a labor of love, are becoming a moneymaker for writers who are selling advertising on their sites.

Some top bloggers who carry advertising say they make hundreds or, in a few cases, thousands of dollars a month. The typical take is more like $20 to $50 a month, which covers the cost of running a typical Web site.

A blog is an online journal typically written by an individual. Some are devoted to single topics, such as pets, poets or politics. Others are stream- of-consciousness musings on anything and everything. Most blogs are updated daily and feature links to other blogs.

The premiere of easy-to-use blogging software has increased their popularity.

Technorati, a San Francisco research company, says there are about 2.5 million blogs, with 10,000 being created each day.

The Pew Research Center estimates that between 2 and 7 percent of adult Internet users write a blog, and 11 percent visit blogs.

Although blogs have been around for about five years, it is only in the last year or two that advertising has been popping up on them.

The percentage of blogs that have ads is still quite low, but it is likely to grow now that companies like Google are making it easy for bloggers and advertisers to connect.

Bloggers whose readership consists of a few dozen friends and family, the usual case, are not likely to attract advertisers.

To lure ads, bloggers say a site should be about a specific product or subject. Henry Copeland, founder of Blogads, says people who want to sell ads on their blogs should plan to work on them hours a day for at least 18 months to develop a following.

“This doesn’t happen overnight. You have to build a voice, a relationship, ” he says.

Some people fear advertising will corrupt blogging and encourage bloggers to write for money, not passion.

“The presence of advertising clearly pollutes the simplicity of the relationship between the writer and the reader. But I think it would be really simplistic and indefensible to argue this is a unique problem in the blogging space,” says Tim Bray, a blogger whose day job is director of Web technologies at Sun Microsystems.

Thanks to the Internet, “you can now self-publish. If you can build an audience, you can get paid for it,” Bray says.

Here’s a look at three different ways bloggers can make money:

Blogads: Blogads is a small North Carolina company run by Copeland.

Advertisers go to www.blogads.com and choose the sites they want to appear on. Prices range from $5 a week on Heretical Ideas to $700 a week on Daily Kos.

Most sites cost $20 to $50 a week, with discounts for monthly contracts. Blogads gets 20 percent of the rate; the blog gets the rest.

Blogads has a lot of political bloggers and advertisers.

Glenn Reynolds, a law professor who runs the libertarian blog Instapundit. com, starting running Blogads three months ago.

Reynolds says he’s been pleasantly surprised at the results. Ads on his site cost $375 a week ($1,000 a month), and he made $4,000 in each of the last two months.

“I don’t think I’ll make that much this month. There’s an initial wave of excitement which is likely to phase out,” he says.

His site gets about 150,000 page views and 110,000 visits per day.

Reynolds and his wife even appear in one of his advertiser’s ads, wearing the advertiser’s “conservative T-shirts.”

Google Adsense: Instead of selling ads on specific sites, Google Adsense sells ads linked to certain words that appear in the content of sites.

Bloggers say they like this approach because it provides relatively unobtrusive ads their readers might want to see.

Bray joined the Google Network by inserting some code on his blog, www.tbray.org/ongoing. That took about 15 minutes.

Among other things, Bray’s site features a lot of flower photography. Now when visitors go to a page about flowers, they might see an ad for ordering tulips online, he says.

Advertisers pay Google each time a user clicks on their ads. Google gives a portion of this revenue to the site where the ad appears. Google won’t disclose its prices or revenue share, and it forbids bloggers from disclosing them.

Bray says he makes about $200 to $500 a month from Google ads, after subtracting his Web hosting charges, which he won’t disclose. The average site pays $10 to $15 a month for Web hosting, although popular ones pay $50 to $100 or more.

Matthew Haughey, who runs Google ads on his TiVo-related Web site, pvr. blogs.com, says, “I’m making hundreds of dollars a month, but most people are making $5 a week.”

Because Google is preparing to go public, it would not comment on Adsense. Its prospectus discloses that Adsense is a fast-growing part of its business, but it is less profitable than the advertising Google sells on its own search site.

Amazon Associates: While technically not advertising, Amazon. com has offered bloggers and other Web sites a way to make money since 1996 through its Associates program.

Sites that join the program link content on their site to books, consumer electronics and other products sold on Amazon. If a visitor clicks on the link and buys the product, the Web site gets a percentage of the revenue. This cut has been as high as 15 percent but is currently 2.5 to 10 percent, depending on the product. New York City blogger Jason Kottke, who runs www.kottke.org, participates in the program. No ads show up on his site, but if visitors click on a book or DVD he writes about, they may be transported to Amazon.com.

“I point to Amazon because it is informative,” says Kottke. “I get maybe $100 a month from the Amazon links, sometimes less. It depends on how many books I’m reading or DVDs I’m watching.”

Kottke says his site, which is mainly about science, media, design, technology and New York, gets 12,000 to 15,000 visitors a day.

Net Worth runs Tuesdays, Thursdays and Sundays. E-mail Kathleen Pender at kpender@sfchronicle.com.
This article appeared on page J – 1 of the San Francisco Chronicle original

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$7.50 For Every 1,000 Views

The Star’s Candace Trunzo cheerfully admits that the gossip weekly pays for tips. “I make no qualms about it,” says the rag’s editor-in-chief. “I think all the celebrity magazines do it.” Well, in that case… Star magazine promises $100 on up for useful information phoned into their 800 number, though the exact rate is subject to negotiation; Gawker’s pay-for-play experiment is more high-tech. Send us secret memos (like this), revealing photographs (like this), or unique video footage (like this). For every contribution we run, and which isn’t shot down as a fake, we’ll pay our standard rate: $7.50 per thousand pageviews. Payment by Paypal or Amazon gift certificate. The traffic count is displayed next to every item. The offer runs for the rest of February. Leaks to tips@gawker.com. (Outraged j-school ethics guardians can email me personally.)

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I am close to buying a website. Here are the site’s stats.
133,000 unique visitors per month
438,000 visits per month
2 million page views per month
28 million hits per month

The “best case” scenario would probably be about $20,000 per month ($10 eCPM) — far fewer than 10% of advertising-supported web sites earn that much (measured by eCPM). Probably fewer than 1% of all advertising-supported web sites earn an average eCPM of $25 or more — at $25 eCPM, such a site could earn $50,000 per month from 2 million pageviews.

But many sites with 2 million pageviews per month are struggling to earn even $200 per month ($0.10 eCPM).

I won’t bother to identify an “average” because your site isn’t average — it is whatever it is.

The stats suggest that this may be a forum or discussion site; such sites usually fall at the low end of the spectrum for advertising income, because visitors come to the site for a specific purpose and their eyes focus on the messages, not on ads.

In addition, revenue is likely to be quite different depending on the pageview “distribution” at your site — it’s unlikely that you have 133,000 unique visitors each viewing 12 pages per month — instead, you probably have far more than 100,000 visitors per month viewing only a few pageviews each, but several thousand visitors who each view 200 to 1,000 pageviews per month.
Added: If you’re not familiar with advertising terminology, the term “CPM” refers to “cost per thousand” (M is the roman numeral for 1,000). While “M” usually refers to 1,000 pageviews, many advertisers won’t pay for multiple pageviews by the same visitor. Most advertising is not actually sold based on “CPM” and therefore most publishers combine revenue from all advertising (CPM, pay-per-click, pay-per-lead, affiliate) and compute an “effective CPM” or eCPM for the site overall.

To make $36,500 a year, you’d need to earn $100 a day on your site (plus whatever expenses you incur). Let’s assume your site is attractive to advertisers and earns $10 in ad revenue for every thousand page views. That would mean you’d need to serve 10,000 page views a day to meet this target. (And more if your site earns less than $10 per thousand page views.)

But assuming you can charge $2 CPM for your site and you have 2 million pageviews (ignore the hits – they’re irrelevant)

[2,000,000 pageviews / 1,000 ] x $2 = $4,000 per month

Increase your traffic and your CPM rate, and your income increases

If you will run CPC ads such as Google Adsense it is very hard to give any estimate because there’s too many unknowns — what keywords will be shown in your site, what is the bidding rate for those keywords, how responsive are your traffic to the ads, how well you optimize the ads, how well you convert for the advertisers, etc.

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How much money can you expect to make from Google Adsense? Google doesn’t allow its participants to publicly share their clicks and earnings data but you can make a rough estimate. The average click-through rate for online advertising in general is around 0.5 to 1.0%. With that rate, if you get 1000 page views per day (pages with Google ads on them), you should expect anywhere from 5 to 10 clicks per day. What will each of those clicks pay? Well, that depends on your content and the keywords on your page that are triggering the ads being served. You can see what ads might be served on your site by entering your URL at the tool on this page or by installing the Adsense Preview Tool. When a visitor clicks on a Google Adsense ad, the hosting website gets a small fee, ranging anywhere from 3 cents to $12 per click or more. You can sign up to be an advertiser on the Google Adword program for $5 and see how much advertisers are paying Google for various search word click-throughs.

Unless your weblog is about some obscure subject, about which advertisers are willing to outbid each other, thereby driving up the amount paid per click, you can count on an average range of 5 cents to 50 cents paid per click. A thousand page views per day, at 1.0% click-through rate and 10 cents per click will yield you a whopping $1.00 per day. Not much, but it should certainly cover your hosting fees, or if you use a hosted blogging service like Typepad, your service fees. Note that weblogs devoted to product reviews like http://pvr.blogs.com/ will generate a higher fee-per-click than political commentary blogs as sellers of the high ticket items will compete to drive up the fees paid to get placed on the ad.

Here is a table showing the fees you could expect for every 1000 page views:

fee_calculator.gif

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I launched PVRblog publicly on July 16th with half a dozen posts, then announced it on my personal blog. In a matter of hours, dozens of other sites linked to it, the site ascended Daypop and Blogdex’s lists, and all told the debut was a big success.

Late that night I remembered the ads and logged into my Adsense account to see how the day went. I clicked over to reports to see the activity. From approximately 3,000 visits (not too shabby at all), enough people clicked through that I made $40 in the first 24 hours. The first thought that came to mind was this:

Great googly-moogly, holy crap. Crap, crap, crap. What the hell just happened? What did I do? What does this mean for weblogs? Would the world be covered in textads when I tell people about this? Shit!

To say the least, I was a bit freaked out. I was measuring everything in increments of $20, hoping to make my monthly hosting and in one day I had enough to pay for two months of hosting. The next day brought another month of paid hosting, and this continued until a few days later I was a Yahoo pick for new site of the day and it resulted in twice the traffic I’d seen so far and over $100 in click-thrus came in during a 24 hour period.

Once again, I freaked out.

(almost all borrowed content)

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