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LATEST ARTICLE:
Adsense: Ah... The Petty Cash!
Written by: Rudy Freeman - on January 24th, 2008
While it's true that many website owners earn thousands of dollars per month with Google's Adsense program, that should not be assumed Adsense earnings are their major income source. Adsense program has been incredibly popular among webmasters due to its ease-of-use and practically no minimum traffic requirement. That makes many people think it provides easy money for website owners. Nothing could be further from the truth! If a web site has a high volume of traffic, let's say, a couple of thousands of visitors daily, then it would earn far more money with many other competitive advertisers online than with Adsense. Here are the reasons why:
First of all, just like Adwords clicks (or impressions) are real bargains to advertisers, Adsense payouts can be really cheap, like 1 to 5 cents per click. All right, if you disagree with my Adwords statement above, fine. But if you're an Internet marketer using Adwords, you must have acknowledged in some degree that Adwords provide the same results for much cheaper cost compared to alternatives such as Yahoo! or MSN pay-per-click advertising. I can't tell the exact reason why, but one main factor that contributes to lower cost per click is that Google employs a huge crowd of Adsense publishers who explore all possible markets or niches. What does that mean to Adsense participants? More competition and less pay, exactly!
Another reason why Adsense earnings are minimal compared to other competitive advertisers is that pay per click or per referral benefit advertisers more than publishers. Although Adsense also offers pay-per-impressions, but it could be incredibly cheap, like 25 cents per thousand impressions! Imagine it takes more than 100 visitors to your site in order to generate 1000 impressions, just to get paid $0.25. Now, even for the number of clicks on ads or number of referrals you can generate out of your website, your Adsense earnings can be negligible compared to how much effort you put in to get that level of traffic. But if you sell the same ad space for a banner, chances are high that you get more pay. Why? Because advertising results are never limited to whether someone immediately buys something, or at least pays a visit to the advertiser's website. For well-established brands such as eBay or Orbitz, they only need to show their logo to viewers. The real effects can be long-lasting, not just "immediate traffic." Think about it, why off-line advertisers would be willing to pay thousands of dollars just for a few-second TV commercial? And obviously nobody can "click" on the TV. Yet there're more results than just immediate visits to a website.
If you want to actively reach out to advertisers, there're hundreds of advertising services online that you can sell your own ad space, or let advertisers bid for the best price. Most of them earn you manifold for the same amount of traffic. There's at least one set-back, however, that you may have to spend more time to manage your own ad-space marketing in order to find the best bidder. Whereas with Adsense, you don't have to actively market yourself, but focus on attracting more visitors to your site. If you ask successful website owners how they maximize their earnings, most of them would tell you Adsense be an additional income source, instead of the main one.
Also, you must have noticed, Adsense ads can be found on almost every website you can find on the Internet. Due to the ease of using the program, all website owners, professionals or amateurs alike, would consider Adsense their top priority. Many webmasters even create website designs and contents exclusively for Adsense. The obvious outcome is a greater competition among webmasters, thereby making it harder for everyone to really make money out of the program.
Lastly, everyone would acknowledge that Google has recently tightened their scrutiny of Adsense publishers and vigorously enforce its Adsense rules, perhaps due to increasing pressure from advertisers. With the size and development speed of Google, one would expect that they have leading technology to safeguard their advertisers from click-fraud schemes. However, both machines and human are not perfect. Many honest publishers have since complained about negative effects on their earnings due to recent development at Google's Adsense; some were even terminated from the program without just cause. I have no information or resources to verify those claims, but one thing I know for sure is that Adsense income just gets harder and harder to earn. For the majority of website owners, Adsense seems to be the only earning option because of their limited traffic. But once your website traffic get better, reaching out to other advertising alternatives may be just the right thing to do.
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From SuperRichList.com
From SuperRichList.com
