When you are building a website and want to make money from it, one of the first questions you are likely to ask is "How much money can you make with Google AdSense?" It is a fair question because honestly, that number can change based on a lot of factors.
How much traffic does your site have? What type of ads will Google run on your site? How much money are advertisers willing to pay per click?
It is important that you ask those questions. A lot of people just hear about the success stories of other people making money on the internet and think that it is easy and anybody can do it. The reality is you can make as much money with Google AdSense as you are willing to put effort in. It's not easy money, it takes work and skill, just like anything else in life.
The Key Factors In Making Money With Google AdSense
There are many factors you need to consider when trying to estimate how much money you can make with AdSense. The most obvious factors people look at are traffic and estimated cost per click. What you might not consider is ad placement and ad design/type. Also, you now have to consider your audience's device in your AdSense ad strategy. If you aren't looking at all the factors, you are leaving money on the table.
Website Traffic and Pageviews
The only way you are going to make money with advertising on the internet is if you have an audience. You need people to visit your website and in the case of Google AdSense, some small portion of those people need to click on your ads. If nobody clicks your ads, then you aren't going to make money. That's just the way it is.
On average anywhere from 1-10% of your visitors might click on an ad, so just to be safe assume some low number like 1%. To calculate how much your ads are worth, you can take the cost per click and multiply it by the number of clicks you can expect to get based on your traffic. So, if you have 100 page views and a click through rate of 1%, you will get 1 click on average. If your CPC (cost per click) is $1, then you might make $1 per 100 page views. The same formula is used to determine CPM, which is the cost per 1,000 ad views. In the case of the above estimate, you are looking at a CPM of $10.
Now, given an average CPM, it becomes pretty obvious how traffic impacts how much money you can make with Google AdSense. At $10 CPM, you need 10,000 pageviews to make $100. Next time you see a picture of someone holding up an AdSense check, think about how much traffic they needed to make that money. For many people, it is not possible to get that much traffic.
The question for you is, how much traffic do you think you can get to your website? How much are you already getting? Traffic is going to play a big role in how much money you can make from Google AdSense.
How Much Will Advertisers Pay?
You have to look at the cost per click, or CPC, numbers to get an idea of how much advertisers are willing to pay. It is as simple as that. If you are writing about a topic that advertisers aren't buying ads for, you aren't going to get paid much. For example, say you write a lot about something without a lot of advertisers like "white snow in the north pole". There are no advertisers trying to sell products or services in the north pole really. If there are advertisers, they aren't paying much because there is no competition. That means the CPC will be very low for your ads.
Imagine instead you write a lot about "diamond engagement rings". Guess what? There are a lot of businesses that want to sell diamond engagement rings because they sell for a lot of money and have a good markup. Think about every mall you go shop in or when you watch television for a while. There are tons of jewelry stores that want to sell diamond engagement rings. They all pay a fortune in advertising to get people to buy their products. On the internet, that high level of advertising spend and competition means you are going to see a higher CPC for the ads you run on your site. That means each click is worth more and you will make more.
How much traffic does your site have? What type of ads will Google run on your site? How much money are advertisers willing to pay per click?
It is important that you ask those questions. A lot of people just hear about the success stories of other people making money on the internet and think that it is easy and anybody can do it. The reality is you can make as much money with Google AdSense as you are willing to put effort in. It's not easy money, it takes work and skill, just like anything else in life.
The Key Factors In Making Money With Google AdSense
There are many factors you need to consider when trying to estimate how much money you can make with AdSense. The most obvious factors people look at are traffic and estimated cost per click. What you might not consider is ad placement and ad design/type. Also, you now have to consider your audience's device in your AdSense ad strategy. If you aren't looking at all the factors, you are leaving money on the table.
Website Traffic and Pageviews
The only way you are going to make money with advertising on the internet is if you have an audience. You need people to visit your website and in the case of Google AdSense, some small portion of those people need to click on your ads. If nobody clicks your ads, then you aren't going to make money. That's just the way it is.On average anywhere from 1-10% of your visitors might click on an ad, so just to be safe assume some low number like 1%. To calculate how much your ads are worth, you can take the cost per click and multiply it by the number of clicks you can expect to get based on your traffic. So, if you have 100 page views and a click through rate of 1%, you will get 1 click on average. If your CPC (cost per click) is $1, then you might make $1 per 100 page views. The same formula is used to determine CPM, which is the cost per 1,000 ad views. In the case of the above estimate, you are looking at a CPM of $10.
Now, given an average CPM, it becomes pretty obvious how traffic impacts how much money you can make with Google AdSense. At $10 CPM, you need 10,000 pageviews to make $100. Next time you see a picture of someone holding up an AdSense check, think about how much traffic they needed to make that money. For many people, it is not possible to get that much traffic.
The question for you is, how much traffic do you think you can get to your website? How much are you already getting? Traffic is going to play a big role in how much money you can make from Google AdSense.
How Much Will Advertisers Pay?
You have to look at the cost per click, or CPC, numbers to get an idea of how much advertisers are willing to pay. It is as simple as that. If you are writing about a topic that advertisers aren't buying ads for, you aren't going to get paid much. For example, say you write a lot about something without a lot of advertisers like "white snow in the north pole". There are no advertisers trying to sell products or services in the north pole really. If there are advertisers, they aren't paying much because there is no competition. That means the CPC will be very low for your ads.
Imagine instead you write a lot about "diamond engagement rings". Guess what? There are a lot of businesses that want to sell diamond engagement rings because they sell for a lot of money and have a good markup. Think about every mall you go shop in or when you watch television for a while. There are tons of jewelry stores that want to sell diamond engagement rings. They all pay a fortune in advertising to get people to buy their products. On the internet, that high level of advertising spend and competition means you are going to see a higher CPC for the ads you run on your site. That means each click is worth more and you will make more.
by Market Interactive | Read more:
Image:Google
[ed. From 2014, but I'm sure the metrics are about the same. Don't worry, just curious. Duck Soup is ad free and will always stay that way.]
[ed. From 2014, but I'm sure the metrics are about the same. Don't worry, just curious. Duck Soup is ad free and will always stay that way.]
