Is it really possible to make $100,000 a year from Google
AdSense (or by selling ads on your website/blog)? If so, then the real question
is how much traffic do you really need to make big bucks with Google AdSense?
While it’s true that we can’t predict the Google AdSense
income exactly, we can optimize the ads in different ways so as to make the
most out of it.
Also, you must make sure that your website category is
advertising friendly because your AdSense income depends a lot upon the
category of your website. You can use Google AdWords Keyword Planner tool to
find out the competition in your industry.
If there is enough competition (i.e. if the suggested bid by
AdWords for keywords in your niche is high) then we can assume that Google will
fill your ad spaces with high paying ads (see how AdSense works).
For example, if you Google search “loans” then you’ll see a
lot of ads so it means that if you have a blog related to personal finance then
there will be enough competition for your ad space.
Now I’ve randomly added few keywords to Keyword Planner to
find out its suggested bid by AdWords. Here they are:
As you can see, the competition for keywords related to “finance”
is very high compared to keywords related to “food”. Of course, the suggested
bid is just an estimate and the real cost-per-click varies a lot.
But still, even if it’s $5 then it means a lot. Why? It’s
because the cost per click to advertise on Google is very high compared to cost
per click on Google Display Network. So if an advertiser is paying $0.50/click
on Google then he may be paying only $0.10/click on Google Display Network.
How Much Traffic Do
You Need To Make Money With AdSense
Let’s say you want to make $100,000 a year from Google
AdSense and/or Google AdSense alternatives.
So, you have to create either: 274 pages that earn $1 a day
OR 548 pages that earn 50 cents a day OR 1,096 pages that earn 25 cents a day
(which sounds reasonable, right?). Let’s say you have 1,096 high quality blog
posts and you earn $0.25 per click from AdSense.
I have analyzed the traffic and AdSense stats (using Google
Image Search) of several websites including my own blogs and websites.
From my analysis, I found that the average Page CTR is around
1% (or it’s something that we can achieve easily). But it really depends upon
your niche, web site design and other factors.
In fact I have achieved a Page CTR of over 20% in 2007 for a
niche website and was making $100+ a day from Google AdSense alone.
Let’s assume that you have a Page CTR of 1% and your average
CPC is $0.25 (I believe it’s quite an achievable target unless your keywords
have no advertiser competition – e.g. a recipe blog).
Some of the top paying AdSense niches are Finance, Internet
Marketing, Technology, Web Hosting, Internet & Computers, Software, Health
etc. and some of the lowest paying AdSense niches are Entertainment, Arts,
Movies, Celebrity Gossips, News blog, Jokes, Wallpapers, Quotes, Recipes, Photo
blogs etc.
As mentioned earlier $100,000 a year means you have to earn
$274 a day. If your average CPC is $0.25 then you need 100,000/0.25 = 400,000
clicks a year (or approximately 1,000 clicks a day) to earn $100,000 a year
from Google AdSense. Assuming that your Page CTR is 1% you need approximately
100,000 page views a day.
Now, let’s say your “Bounce Rate” (it is the estimated
percentage of visits to your website that consist of a single page view) is
100%. It means that you need 100,000 unique visitors a day itself to generate
100,000 page views a day.
In a nutshell, you need 100,000 visitors a day to make
$100,000 a year from Google AdSense alone (with a CTR of 1% and CPC of $0.25).
A page view is what
Google counts in your reports every time a user views a page displaying Google
ads. We will count one page view regardless of the number of ads displayed on
that page.
For example, if you have a page displaying three ad units
and it is viewed twice, you will generate two page views.
For standard content ads, Google counts a click when a user
clicks on an ad.
For link units, Google counts a click when a user clicks on
an ad on the page of ads, after selecting a link in the link unit.
The Page Click Through Rate (CTR) is the number of ad clicks
divided by the number of impressions or page views that you have received.
Cost Per Click (CPC)
The Cost Per Click
(CPC) is the amount you earn each time a user clicks on your ad. The CPC for
any ad is determined by the advertiser; some advertisers may be willing to pay
more per click than others, depending on what they’re advertising.
Page Revenue Per
Thousand Impressions (Page RPM)
Page Revenue Per Thousand Impressions (RPM) is calculated by
dividing your estimated earnings by the number of page views you received, then
multiplying by 1000.
Page RPM = (Estimated Earnings / Number of Page Views) *
1,000
For example, if you
earned an estimated $0.15 from 25 page views, then your page RPM would equal
($0.15 / 25) * 1000, or $6.00.
But you are not using AdSense alone to monetize your
website, right? You can make more money by selling direct banner ads, in-text
ads, CPM ads, sponsored links, affiliate marketing, etc.
So let’s say you’re selling direct banner ads and is also
selling CPM advertising which is again an effective way to monetize your
website.
What are CPM ads?
CPM (Cost Per Mille)
stands for Cost Per 1,000 Impressions. CPM networks pays for every 1,000
impressions you generate. If a CPM ad network is paying you $1 CPM then it
means that they’re paying you $1 for every 1,000 page views you generate.
CPM Network earnings totally depend upon your traffic
quality but you can expect anywhere between $1 – $3 per 1,000 impressions. So,
if you generate 100,000 page views a day then you can make $100 – $300 a day
from CPM Networks. Again, you can earn $100 – $300 (or maybe even more) a day by
selling banner ads directly to advertisers.
Now, you can split the traffic into three as you’re earning
$300 each from 3 advertising networks. It means that you need 100,000/3=33,333
unique visitors a day (with a bounce rate of 100%) to make approximately
$274/day.
Again, if you have an authority blog then your bounce rate
will never be 100%. In that case you can expect an average page view of 1.5 per
user. It means that 50% of your visitors exit from the landing page and others
visit more than one page on your website.
All in all, you need approximately 20,000 visitors a day to
generate 30,000+ page views and it can earn $274 a day which translates to
$100,000 a year in advertising revenues.
Need a little more help reaching that $100,000/year goal?
Add commissions from Affiliate Programs as well into the equation and you can
hit that $100,000 goal with much less traffic.
In fact, in 2008 I was averaging $200+ a day from less than
200 daily unique visitors with affiliate marketing. It was possible because
when it comes to affiliate marketing it’s all about traffic quality and not
traffic quantity.
No comments:
Post a Comment