Paid ad placement on websites, apps, and social media platforms has been popular among publishers trying to expand their monthly income sources.
Although the exact number of advertisements we view every day is unknown, estimates suggest that there are up to 10,000 advertisements in circulation now, compared to an average of 500 in the 1970s.
Ad income is such a potential for publishers to monetize their content, especially when one considers that marketers worldwide spent an estimated US$491.7 billion on online advertising in 2021 and are expected to spend about US$571.2 billion this year.
We’ve included some tips below if you’re trying to boost and diversify your revenue. But let’s go over the fundamentals first.
Metrics for Advertising Revenue: CPM and CPC
Click-per-mille (CPM), alternatively referred to as cost-per-thousand or cost-per-impression, is the amount spent on one page of advertisements for every 1,000 views.
Contrarily, cost-per-click (CPC) indicates the price associated with a single click on an advertisement.
Ad networks employ CPM and CPC as their main metrics.
How Are Ad Revenue Estimates Made?
The process of figuring out overall ad revenue is very simple.
The total number of ad impressions divided by 1,000 and multiplied by the agreed-upon CPM rate is the formula, according to the CPM model.
Additionally, the CPC model multiplies the agreed-upon CPC rate by the total number of ad clicks, divided by 1,000.
To determine the prospective revenue, use this website ad revenue calculator.
How Much Money Can You Make Via Ads?
The availability and demand for a certain good or service, the ad network being utilized, the target audience’s demographics, the niche, and the time of year are just a few of the variables that affect CPM and CPC monetization.
Ad impressions and user clicks are mostly determined by the traffic to the app or website and the intended audience.
It’s simple math: revenue increases with increased CPM, CPC, and traffic.
YouTube Ad Revenue: What Is It?
With 1.86 billion subscribers, YouTube is a great place for in-stream advertisements, so publishers that aren’t on the site yet should reconsider.
Given that 74% of Americans used the platform last year, according to Pew Research Center research, the rationale for developing a complementary presence is stronger.
In order to monetize their channels, publishers must acquire over 1,000 subscribers and 4,000 hours of viewing during a 12-month period through the YouTube Partner Program. As a result, partners are able to profit from the advertisements that run within their videos.
Facebook Ad Revenue: What Is It?
The motivations behind starting a YouTube channel are identical to those behind setting up a Facebook page. With 2.91 billion monthly active users as of the end of September 2021, it is the most popular social media platform and a favorite among advertisers.
Five options are available to media and publishers on Facebook to monetize their accounts: video ads, ads within articles, a shortcut for subscriptions, brand partnerships, and live video revenue.
In-App Ad Revenue: What Is It?
Over the past 20 years, in-app advertising has grown significantly in popularity as a monetization method in tandem with the explosive growth of the mobile gaming market. According to the most recent estimates, there are roughly 2.66 billion gamers globally. Games are becoming more than simply a means of entertainment; they are becoming more and more of a social medium for advertising.
According to projections, mobile games will account for 45% of all gaming income worldwide in 2021. Of this revenue, hyper-casual games will account for 62% of the top 30 titles in terms of downloads.
These days, app developers can monetize their mobile apps by showing users advertisements. These could be in-app purchases, playable commercials, banner ads, or reward ads.
The average revenue will also fluctuate, just as with any other type of advertising channel, based on the popularity of the app, user interaction, and whether or not it makes use of offer walls, interstitial adverts, or rewarded commercials. In the gaming sector, CPM prices normally fall between US$4.00 and US$12.00.
13 Strategies to Increase Ad Revenue
1. Select the Audience You Want to Reach:
The price of CPM and CPC will change based on the nation in which your intended market resides. Because of the purchasing power of the relevant population, the CPM of an audience in Africa or the Balkans, for instance, will be significantly lower than that of an audience in America.
The target audience’s demographics for an app follow the same principle. A conversion bottleneck would result from the majority of the target demographic not having the tools to complete a digital transaction, such as in the case of an app targeted at minors.
Hence, if ad income is poor, it may be because the target audience is from a demographic with low liquidity or from areas with low CPM and CPC.
2. Boost the caliber of the content:
Ad income depends on the caliber of the content. Advertisers must have a large audience and significant traffic in order to pay for views or clicks. The best method to boost traffic is to offer high-caliber content. Because of this, running advertisements with poor-quality content is not likely to bring in money.
For Google to recognize content, it must be authentic, valuable, and distinctive to the audience. Indeed, it must be optimized for search engines, preferably using terms that have a high search volume and little competition.
Google and other search engines will rank your page higher the better your SEO is.
3. Offer Adaptive Content:
Pages with static content are unlikely to generate much in the way of advertising revenue. Posting an article and hoping for the best is insufficient. Google likes material that is frequently updated by users and publishers, such as blogs, vlogs, and forums. The key is to demonstrate a high degree of engagement.
4. Provide a Complimentary Tool:
Regarding increasing user engagement, Google AdSense suggests that websites with a free online tool are ideal for drawing in both one-time and recurring users.
5. Select the Correct Niche:
Ad networks use supply and demand to determine CPM and CPC. This implies that a higher level of monetization will be seen in certain highly demanded businesses or niches.
Insurance, online education, marketing, legal averaging, cryptocurrencies, online banking, internet, technology, automotive industry, eCommerce, and health are some of the top-ranked niches.
6. Avoid Ad Blocker Problems:
Ad campaigns suffer as a result of the 763.5 million internet users who use ad blockers to stop advertisements from showing, according to Statista.
Publishers have two options for getting around these ad blocks
One way to do this is to request that users of the website, app, or channel disable their ad blockers. This is a dangerous strategy because, no matter how interesting or original the information is, it can drive away the viewers. Your Google ranking and your revenue objectives may suffer if your audience starts to leave.
Using native advertisements, which are integrated into the website’s content, is the second strategy. Because it improves the material and doesn’t annoy the consumer, this strategy is more appealing. For instance, it might be advantageous to place an advertisement for eCommerce software on a page discussing eCommerce revenue tactics.
7. Maximize the Number of Shown Ads:
In the field of marketing, less is frequently more. An excessive number of advertisements within a piece of writing, a video, or an app could drive readers away, which would further reduce advertising income. This will also have an impact on a website’s Google ranking, which will lower traffic.
Moreover, Google may view this as a breach of Webmaster standards if there are more adverts than content. Lastly, advertisers dislike having their content crammed onto a single page.
For this reason, even if it means there are just two adverts on a page, it is preferable to maximize the quantity of advertising that is displayed. The ideal quantity is determined by the advertising dimensions, duration (particularly in the case of videos), and format. One useful tool for examining the optimization of shown advertising is Google Analytics.
8. Monitor the Performance of the Ads:
Publishers typically position advertisements with the highest CPC or CPM in the most desirable spots because they know that the ads with the greatest CTR are those that the audience reaches first.
While Google AdSense offers some broad guidelines for ad placement, each publisher must determine what is most effective for their particular page or application. It’s best to monitor performance and adjust the ad sequence as needed for improved monetization.
9. Employ Paid Promotions and Adjustable Prices:
Ad income also has the attribute of seasonality. This implies that while the holiday season (Christmas, Black Friday, Valentine’s Day, Mother’s Day, etc.) will be high advertising times, you should anticipate lower revenue between January and June.
A publisher must implement a strategy that addresses demand fluctuations throughout the year if advertisements are their main source of income. One such tactic is yield optimization.
By selling all of the available ad inventory for the best price throughout the year, it enables publishers to maximize the revenue from their ad space. By allowing publishers to sell ad space to the highest bidder, Google Ads auctions enable you to achieve the highest price for your ad inventory.
As a result of the strategy’s primary reliance on the behavior of potential customers, prices are fluid and adjustable, contingent upon a variety of external factors, including demand and seasonality.
10. Ad Size Optimization:
Users may not like having advertising take up most of their screen real estate, even though larger ad sizes are better for online ad revenue. Additionally, picking sizes should be done carefully because over 60% of organic Google searches in the US today originate from mobile devices. A positive user experience will, after all, affect your site’s ranking.
You can utilize the medium rectangle (300×250), which is commonly used for horizontal banner ads, for horizontal ad spaces. As an alternative, a 200×200 Small Square or a 250×250 Square works nicely on desktop and mobile devices.
One study found that vertical ads can “increase processing fluency” and provide a positive user experience on mobile devices with a high-performance rate. Google AdWords suggests using the following sizes for vertical ad spaces: 300×200, 300×100, 300×50, 250×250, and 200×200.
Publishers and marketers can advertise more easily thanks to Google Adsense, which offers multiple banner sizes for their adverts.
11. Make Use of Various Ad Formats and Types:
Publishers have access to a wide range of channels, including blogs, apps, social media accounts, video channels, websites, and more, therefore the kinds and styles of ads will also vary.
The advertisements can show up as pop-ups, push notifications, banners, native ads, interstitials, or images or videos. Depending on the market and intended demographic, some of these ad styles may generate more revenue from advertising than others, therefore it’s always a good idea to test and evaluate them. On desktop vs. mobile, the performance of some ad kinds will differ.
Accepting a variety of formats on websites is usually a good idea because it improves user experience and raises click-through rates (CTR). Additionally, the effort will be appreciated by marketers.
12. Select the Appropriate Placement for Your Ad:
Poor app scheduling or ineffective ad placement on a website could be contributing factors to your low ad revenue. These errors can have a major impact on revenue and result in low ad visibility.
Verify that website visitors can see and easily click on the ad placements. Some will work more efficiently, while others won’t. For instance, there is far more revenue from ad space that is placed in the midst of the article, beneath the navigation bar, or inside of whitespace.
13. Boost Website Speed:
Sometimes a website’s slow load time is the cause of low ad revenue. Adding too much information to the website, especially sponsored advertisements, might make it difficult for users to navigate and damage its Google rating.
To get around this problem, publishers can use lazy load, which speeds up the initial page load by loading the most popular photos or videos first. The rest loads from the system as the user scrolls down.
Conclusion:
The monetization of applications, websites, or social media accounts necessitates a carefully considered marketing plan, just like any other firm. It’s imperative that you continuously monitor the effectiveness of the advertisements and maintain your position at the top of the Google search results.
It is your responsibility to troubleshoot the problem or hire an expert to find a solution if your ad revenue is not functioning as you had hoped.
