I recently gave a session on WP Camp Germany in Berlin on how to
optimize your income from ads on your website. As the discussion had
shown, a lot of listeners where just starting to monetize their website
and their first question was related to how much AdSense pays you in
general. In this article I am going to review some information on the
potential of AdSense income, list some benchmarks from various sites,
and give basic optimization tips.
How to earn money with AdSense
AdSense is an ad network belonging to Google. It is the biggest ad
network in the world and the main service through which Google can
display ads on a lot of websites. The secret behind AdSense is its
simplicity. As a website owner you just need to sign into your account,
create your first ad, and insert the source code on your website. The
last one is the trickiest part for non-technical publishers, but still a
lot easier than what some other ad networks ask you to do.
At the beginning there was just one way of getting paid with AdSense
and this was on a per click basis. This means that you earn money each
time a visitor to your site clicks on an ad. It doesn’t matter what he
did afterwards on the target website. But before you start thinking
about it: When Google figured out that some people tried to raise their
payments by clicking on the ads on their own sites, they started
penalizing for such behaviour.
68% of the click price
How did Google AdSense determine the amount you receive per click? Google also runs
AdWords,
which is kind of a mirrored service to AdSense. On AdWords advertisers
running shops, services, or other marketers create ads and tell Google
to publish them on either the Google search engine or in the
display network,
so all websites belonging to the AdSense network. 68 percent of the
amount an advertiser pays per click on their ads on your site is your
income. The rest is Google’s commission fee.
This still isn’t all you need to know about how much AdSense pays
you. The costs per click are calculated in an auction. Every ad that is
somehow in the pool to potentially be displayed on your website takes
part in it. In this auction, it isn’t just the highest bidder that wins,
but the winner is also determined by his “quality”. Without going
deeper at this moment just remember that Google will ultimately run some
smart algorithms that try to get the highest income per thousand
impressions (return per mille = RPM) for you (and them).
CPC, CPM, CPE
In addition to the cost-per-click (CPC) model, there are two other
bid types. Cost-per-thousand-impressions (CPM) is an income model where
advertisers pay you a fixed price per thousand ad impressions. No click
on them is necessary for you to earn something from AdSense. This bid
type only works if advertisers choose on AdWords that ads should be
displayed only on your website. Before they can do that you need to ad
custom channels. I might cover this in an upcoming article, so you might
want to subscribe to the newsletter so as not to miss it.
The most recent bid type is cost-per-engagement (CPE). In this case
the advertiser is defining an action the visitor needs to fulfill like
expanding the ad, watch a video ad, finishing a poll, etc. This form is
so new that the documentation from AdSense doesn’t even mention it. As
much as I would like to increase income from AdSense, we will have to
see how visitors react to this, because the new engaging ad units might
be a bit more jarring than the classical text or image banners.
Which is the best bid type?
You are not able to select the bid type yourself. Google calculates
the best income when combining them based on what runs best on your
website. If advertisers know about your good reputation and book CPM
campaigns on your website, they might outrank your CPC income. If your
CPC banners are well placed and your content is written for valuable
topics like finances, your CPC might be unreachable. Lets see how the
new CPE ad types kick in. The first AdSense accounts I have seen them in
look very promising.
Should I use AdSense?
Once the ad code is inserted in your site, you are ready to earn
money with AdSense. In practise, there is just one little problem for
most small websites: to earn money with any kind of ad type you need
traffic on your website.
This is the point where I normally stop new publishers who ask me for
consulting. You are just building your content and reputation, have to
fight for every newsletter subscription and the absolute traffic is
below 10.000 pageviews a month. In this situation you should consider
waiting with ads on your website. They might not only drive potential
visitors away, but you also need time to manage and optimize your ads. Are there exceptions? Yes, there are. You will know when you see one.
Some website owners explain their banners in terms of their costs for
hosting and the domain. I personally consider both to be so cheap
nowadays that any hour practically worked for free on your project costs
you much more than those things. If you don’t need those extra few
cents per hour wait with AdSense or any other ad network until your
website has grown significantly.
How much can I earn with AdSense?
AdSense earning examples
The answer to how much AdSense finally pays you depends on many
variables. Still, the most important is the content on your website.
Still, this is not a very specific answer to your question. Neither
Google nor most publishers like to publish numbers on how much they earn
with AdSense. I also won’t publish my clients’ income reports and their
name so blank in this article. Sorry for that.
Still, there are some numbers I found thanks to Peer Wandiger, a
German blogger who publishes monthly reports on incomes gathered from
various sites. I took the following examples from his
review in September 2013.
$48/ 1000 visits
The first impressive number comes from Pat Flynn, the owner of SmartPassiveIncome. In his own
September report he stated that his niche site SecurityGuardTrainingHG.com generates
$1,466.33
in revenue with 800 to 1,000 visits per day. This is about $48 per 1000
visits and is a very respectable number for such a niche site.
Other ad networks beyond AdSense
A great example of the chance for ad diversity is the
income report of pinch of yum.
Here, AdSense has the smallest income from an ad network. They seem to
be more successful with the use of BlogHerAds. If you are more familiar
with AdSense and ready to go a step further, there is probably also an
ad network better suited for you.
Also
moms-make-money.com earns more from other ad networks and income sources than from AdSense. Still,
$272.82 for 158,710, which seems to be page views, is not bad at all considering the fact that you hardly notice the ads from Google.
Some general AdSense benchmarks
Even though I can’t state detailed income reports from my clients, I
would like to give you a general benchmark of how much AdSense pays you
when you use it on your website. I already summed up the 3 rich media
banners you are allowed to use as well as link banners and the Google
search on your website. Of course, your income is also highly dependent
on the size and placements of the ads, but you will see there is a wide
range of income possibility.
$0,25 – $3 RPM for unspecific, generic content
When you are running a forum, social network or directory of
non-business information, chances are your AdSense income might not jump
over $3 per 1000 page impressions. This is due to either ad blindness
of returning visitors or information, that isn’t connected with products
and won’t attract visitors eager to buy anything. Even affiliate
programs might not really work here.
$1 – $10 RPM for content-rich sites, e.g. blogs
Content-rich sites like blogs should perform better with AdSense. How
much AdSense pays does still depend on your niche and how you implement
the ads, but a high frequency of new visitors and placement close to
the main content will lead to a decent income. If you have a higher
amount of traffic you might want to try other ad networks, affiliate
programs and split tests.
$10 to a lot more for product-related sites
This is no surprise. If you are running a product-related website,
like a blog about products and services, review products or a business
directory, your income from AdSense, but also other sources should be
the highest. But don’t think you are the first to have this idea
What to do now?
Many of you might now be thinking of leaving your current hobby blog
and starting a website with product information to earn more money from
AdSense. Stop for a minute and rethink your monetization strategy. Maybe
it is just AdSense that doesn’t fit you and your content. Or maybe you
should check your banner performance and can earn more by using my basic optimization tips.
Still, the numbers I mentioned are in such a wide range that I would
love to read your comments about your AdSense income to either prove me
right or wrong.