To make money with AdSense you will have a much better chance of success once you understand the whole process of how AdSense works. First of all AdSense wasn't created so webmasters could make money from it, this is just a healthy by product of the process. The main job of AdSense is the other half of the program AdWords where advertisers create their adverts which are then placed on advert relevant web pages. A good example of this is on my post about when I went to see Derren Brown as the post is about psychological magic, adverts relating to psychology, magic and Derren brown himself are displayed at the top right of the post ( have learned from research that these adverts have a very low payout see post: Find out which adverts are being clicked.
So in a nutshell here is how AdSense works:
- Advertiser creates an advert linking to their site and is quoted roughly how much it will cost for each click they receive on their advert.
- Google's AdSesnes/AdWords algorithm matches the advertisers adverts to RELEVANT websites who display AdSense adverts.
- A targeted visitor visits the website with the adverts on and clicks on an advert which interests them taking them through to relevant content.
- For each click on the advert $X amount is deducted from the advertisers AdWord account a percentage of $X is deposited in the AdWords publishers account and the rest of $X is retained by Google as a fee for the service and maintenance costs.
So as you can see their main priority of AdWords/AdSense is to direct targeted traffic to the advertisers website, and you the publisher get paid for each visitor who reaches the advertisers site via the AdSense advert on your site.
Adsense Average CTR
Not everyone who visits your website will be interested in clicking on adverts but a certain percentage will be interested and visit the advert link for further information. The percentage who do click on the adverts is know as the click through rate (CTR), it is against AdSense terms and conditions to display your personal CTR but it is accepted that the average blogging CTR is between 1% and 5%. Again this is provided that the adverts are placed in view of the reader, as in this post where I have positioned the advert at the top right of the post. So if we take the mean of the CTR to be 2.5% which is a good starting point you can then estimate that you need at least 200 unique visitors to get 5 click's.
AdSense cost per click
Not every AdSense advert will be priced the same, some adverts will cost publishers much less compared to more competitive averts which can cost publishers up to $70.00. This is know as cost per click (CPC) and again it is against Googles TOS to disclose your CPC but looking through averages published on the Internet you can assume that the average site will be displaying adverts with an average CPC of between $0.10 to £0.40. Once again if we go for the mean average and estimate that each advert is going to net you $0.25 we can then work out that you can expect to earn.
AdSense numbers game
Now we have covered all the CTR and CPC stuff we can now roughly assume that for every 200 unique visits you get to your you will earn $1.25. This is only a rough estimate as this is not an exact science but from here the whole "AdSense game" is a pretty straight forward issue of getting traffic and the best traffic for your website is "targeted traffic" i.e traffic which has came to your site via relevant links or through a Google search. Over time as you keep on adding more pages to your blog you will increase your potential 'searcability' from search engines. And once you have 200 pages which could be potentially accessed via a search query it is only a matter of time before you are EASILY hitting that 200 unique, targeted visitors which may start out as 200 unique per month, then per week, then per day, and then PER HOUR!!! Adsense really is a numbers game and you could tweak your adverts over and over again but from my own, and other people experiences all you need to do is make sure that the adverts are in good view of the reader without being intrusive.
Aim to make each page 'searchable' by search engines, include good keywords and most of all good content, how to pages are a good source of search engine traffic, here are some example of pages which provide me with good traffic from search engines.
Hopefully after reading this you will understand that making money from AdSense is really easy, its getting the traffic which is the hard part. If you keep on adding good content and be a persistent blogger the asdense earnings will slowly trickle in, this IS NOT a get rich quick scheme and some of the examples of bloggers who are earning $10,000+ per month have been doing this for years and are experts in their field. If you are willing top put a little of your time aside each day and dedicate it to making money online and educating yourself in every aspect it will pay off tenfold if you stick with it. I cannot stress enough that this Will not happen overnight, most small business take 3 years before they begin to turn over any reasonable profit making money online is no different, though the time-frame may not be as extreme. Stick at building you blog and readership and you WILL make money from AdSense, set yourself targets, maybe 2000 unique visitors per day 1 year from now, that would give you a conservative $12.50 per day AdSense earnings, probably more which would equate to $375.00 per month (residual) for doing nothing as most of the hard work you have already done!
Stick with it and you will make money!
Written by Andy Coates
Copyright: Andy Coates Dot Com
July 2007
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