Earning Money Through In Text Ads – PART II

As we discussed in our earlier blog, the very frequently asked questions by the advertisers or publishers are how much they will be earning and why not, they are the sole sponsors and have full rights to know how much they will profit. It’s not in numbers that we can count, the performance of the site is all that matters to earn some big money through blogging networks. If you are not getting, for the new comers please read the first part of the same blog, there are number of measurement methods that goes in to deciding the total outcome of your in text ads. It depends finally on your provider, some of the networks do block the ads in some areas geographical may be due to technical snags or knowingly.

The first part we discussed to measure your website revenues by the bottom line that is in dollars, different software are going to give different results, so its better to set your targets some where in the middle of it. The number of impressions you get on your site pays you the money – remember the one word that will fetch you dollars is  “click”. You get paid for clicks on ads, in text ads – everything happens through one singe mere click. The in text ads are getting very popular and so does the term PPC which stands for pay per click, you get paid as per PPC. There are other varied models you can make use of like pay per acquisition but these will yield you low revenue. If you are planning to earn money through clicks then there are 2 parameters you should set your eyes on; one is the number of clicks and second is the payment per click.

The website earns money through varied functioning of the site in different fields, as we talked about it earlier PPC, CTR, eCPM, impressions, are common such terms which are measurement units on web. If you are seriously on a path to monetize your website, then you ought to take care of the number of clicks on in text because they give you a certain number of click on every 100 page views. The ratio is termed as CTR (Click through rate). You can easily estimate your revenues if you know what is your site’s CTR and if you fail on getting this ratio then check out the CTR on banners and double it, you will get your answer. In text ads earns you higher revenue as they are based on words, and users in the search boxes are often typing them.

The higher PPC on your site means higher number of clicks and revenue increases in accordance, the advertisers may be paying different sums for different clicks, for advertisers its not PPC but CPC (cost per click) that matters the most. The demand for product information is of higher value over Internet, as the advertisers would pay your more as the sales potential on your site is higher so remember, to put great content to get maximum number of PPCs. The difference between any celebrity website and any financial website is huge because the target audience are more interested in to stocks rather than any other talks so take care in what types of ads you are putting and for what website niche.

The content of your site runs your whole website, the content influences the number of clicks you get as also the PPC. Sometimes, the revenue you might earn through such sites may differ in different geographical areas as the developed economies has higher potential to make huge sales as compared to under developed or developing economies so as the economy grows stronger it shall yield good sales and hence higher PPCs. The place from where you are running the website is important as in developed countries with dollar money, the publisher of the site will earn, starting from a few cent up to a certain number of dollars and the countries where the currency is measured lower than dollars will earn just up to a few cents as the maximum limit.

For calculating the actual earning from in text ads, take your net impressions and divide it by 10, multiply that figure by your CTR so that you get your actual number of clicks. Multiply that clicks by your PPC and you get the final projected revenue figure. To find the eCPM for your site, you divide the projected or actual revenue figure by the number of impressions and dividing it by 1,000. But mind it, if the traffic to your site comes from different geographic areas then this formula has to be applied separately in accordance to the source by using the relative PPC pertaining to that area.

I hope I have shared with you the best formula which I could to estimate the revenue from in text ads but as a word of caution, I would like to tell you, that this is the general version of the formula which I have used many assumptions, generalization data, and several other parameters that will or can show you different revenues depending on the region you have targeted and the traffic that you get on the website.