Online Advertising

AdSense revenue-how much you can expect

May 13, 2009 in The Basics

As many other webmasters you decided it is time to make some money of the site you were working on for the last couple of months.  At least to pay for web hosting and cup of coffee you desperately need after long hours of writing new content for your website. Your Adsense ads are up and ready to be clicked on. The question which all new Adsense publishers asking themselves is: How much money can I make with this? Is Adsense revenue high enough to accommodate decent living from month to month?
To answer this questions I’d like to start with some informations.

Basically there are two types of Adsense publishers. First group of publishers have well established websites with thousands of visitors per day. Not all visitors will click ads( for different reason ) but some percentage will and that translates to good adsense revenue.
Second group, which is much larger, consist of publishers who have much smaller traffic or no traffic at all. Without decent number of visitors coming to your site you can expect very low earnings or no earnings at all. That is reality that you have to deal with at beginning. You must work on building that traffic if you are serious about making living of adsense program. There are many ways to increase hits to your site and you can find very good articles on the internet( search Google for following keywords: backlinks building, SEO, tips for increasing traffic etc).
When you do get some visitors and they click on Adsense ads how much will you get for that click?
The truth is it can range from as little as 5 cents to whopping 10-12 dollars. There are many factors which determine  payout per click.
* subject of your website, in other words keywords. Some keywords such as mortgage, loan, travel, job etc are high paying keywords but at the same competition for high ranking for these terms is huge. If your site is new( no backlinks, low page rank etc) there is small chance you will get any visitors from search engines.
* demographic of your visitors-It is known that clicks coming from different geographic regions have different, sometimes huge difference in value.
* Page Click Thru Rate( CTR) -For example if you got 100 impressions on your page with ads and only 1 click then your CTR is 1%. Why this matter? For some reason Google use this as indication of quality of content you offer to your visitors. Payout for click will be different if that click happened after 5 visitors or only after 99 visitors to your site.
* Smart Pricing- Google is very tight when it comes to explaining how it determines click value hence there are many rumors among publishers about this issue. Basically Google , regardless of what advertiser pays to Google, can decide value of the click for particular site. I know, it does not sound as a fair play, but on the other hand I do not think that Google is cheating taking this approach. It is very complex business model and everybody has to make some money.
* Bounce Rate- If your visitors spend very short time on your site and then leave it is assumed that either your content is not relevant to subject they were are looking or your site does not offer any information at all. High bounce rate affects clicks payout.

Information presented in this article should give you some idea what you can expect regarding adsense revenue as a new publisher.

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