Income From Advertising On Your Site: What You Should Know

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Advertising Revenue

Prior to the dot com crash a few years ago, banner advertising was extremely popular. A couple of things happened to limit these ads since then however.

  • Realistic Budgets - since the crash, larger companies are actually accountable for their advertising budgets. That wasn't typically the case a few years back when companies were spending tremendous amounts of money. All in the hopes of gaining name recognition.
  • Realistic Results - another issue was the fact that many of the companies buying ads were not tracking their results. They were dropping serious amounts of money without having an idea of whether it was profitable or not... often times it wasn't.

Here It Comes Again

With the economy on the rebound a bit, guess what?

Banner advertising is starting to become popular again. Hopefully this time companies have learned their lesson and at least track their results.

I have been experimenting with some banner ads in a few very target spots online. They have been profitable, but not overwhelmingly so.

If you happen to be on the other end of the equation (getting paid to have ads), you may be in luck.

More and more companies are looking to advertise once again on sites.

I had a conversation this week with one site owner who was selling ads on his site for $2,500 a quarter or $1,000 a month. For his particular business model it may be worth it to him. I particularly don't care to have banner ads, although I have been approached for them.

Things To Know

If you are considering putting ads on your site, you need to understand the possible consequences:

  • Distraction - there is no doubt that ads distract visitors to your site. After all that is what they are designed to do. Distract people so that they read the ad or visit the advertiser. If you are planning on selling ads, you need to be okay with the fact that people are leaving your site sooner than they likely would have other wise.
  • Annoyance - advertisers do a lot of studies concerning online ads. They have come up with some interesting results which you should keep in mind. In particular, visitors had a much lower tolerance for sites with more than 2 ads on it. Particularly when those ads gave the impression of a "cluttered" site.

Whether you decide to have ads or not could be a tough decision.

What is important is to have a solid base line concerning the profitability of your site before the ads are put in place. That is, you know how profitable your site is without the ads.

Then keep track of your profitability after the ads are in place. You can then make an educated decision as to whether the ads make sense for your site or not.

For me? If I was determined to have ads on my site, it would not be for paid advertisers at first. I would instead promote relevant affiliate products for a commission on sales. Taking these profits into consideration, I could then decide whether to accept other people's ads or simply run my own.