Content pages form the bulk of Web sites on the Internet. It’s hardly surprising when you think about it. Consider the number of hobbyists, enthusiasts, bloggers, information sites, and even the more serious publishers who create informative content on a daily basis.
Whilst e-commerce sites tend to generate the majority of their revenue from tangible (real life) items, content sites rarely have this luxury. They must generate money using other avenues, the most obvious and popular being advertising. Other revenue opportunities exist for content sites, such as donations. However, by and large, it is advertising that is the major money spinner.
Visit only a handful of Web pages and you will struggle to avoid advertisements. They have been, and will persist to be, a focal and accepted fact of Internet life. Adverts are everywhere: on popular sites and also on smaller, niche sites. Even the owners of some personal sites use advertising to help cover the cost of hosting.
However, the Internet has not always been so commercial. Yahoo! once agonised at length over whether to begin accepting advertisements on their portal. Google did not always display ‘Sponsored Links’ either.
But where there is money to be made, it will be. The Internet now resembles a corporate playground where big bucks rule the roost, and few people actually provide worthwhile information without wanting something in return. We are exposed to an increasing amount of advertising on a daily basis, especially on the Web. Even sites such as Facebook, once free from advertising, now subject visitors to increasing (and often irritating) adverts. Whether you agree with it or not, overt commercialism on the Web is here to stay.
If you are the owner of a content site and wish to begin generating money online, there are now more opportunities than ever. We will now take a look at some popular methods to generate revenue.
Banner Advertising
Advertising using banner images is the most recognised and traditionally the most popular method to generate online revenue. In fact, it persists to be the most commonly used method to monetise content sites. Despite some commentators proclaiming the banner has seen better days, it still has a crucial part to play in online advertising. Not so much to attract traffic, but more so for the purpose of branding.
Over the years, Web surfers have conditioned themselves to filter out elements resembling advertising. However, much in the same way as billboard advertising, banners are most effective when used in conjunction with an integrated marketing strategy. And despite the majority of banners generating very low click-thru rates, their branding intention and message is often sub-consciously absorbed by the visitor. This has equally (if not more) lasting value than a single click, which often results in ‘no sale’ anyway!
In terms of generating revenue for a content site, most banners use measurements known as CPM (Cost Per 1000), CPC (Cost Per Click), or a mixture of both. These figures vary depending on the campaign.
Unless you have a LOT of traffic, it is unlikely banners will generate a great deal of money for you. This is especially the case if you opt to use advertising brokers, who invariably take a percentage cut of the total sale. Therefore, you may find it more beneficial to sell advertising yourself. However, this is often difficult without a dedicated sales team – or an individual drumming-up new business. You may have some success with “Your Ad Here” plastered on your pages, but don’t count on it!
Affiliate Marketing
Affiliate Marketing, whilst actually being around for well over a decade, is still a relatively young industry (albeit a tremendously fast-growing and lucrative one). It is both low risk and highly effective for advertisers.
The success of affiliate schemes is in no small part due to the ‘pay per results’ nature of the system. CPA (Cost Per Action) is how most affiliate models function. So rather than purchasing advertising space in the hope it will generate new sales, advertisers only pay when a customer meets pre-determined criteria, whether that be a sale, a subscription, a sign-up, a download, etc. In the industry, this is known as a ‘lead’.
Publishers (the owners of content sites) are able to pick and choose related campaigns to run. For instance, if a site deals with holidays, a plethora of ‘holiday’ campaigns are available to implement in the form of a variety of banners and text links. Affiliate networks often contain hundreds of campaigns to select from, so if you’re a publisher wishing to supplement your income, there are ample opportunities.
Some affiliate networks to consider are Affiliate Future and TradeDoubler. Also visit FreebieList.com’s excellent list of free affiliate programs.
Google Adsense
Google has its own method for publishers to earn revenue online. It’s called Google Adsense - a system delivering targeted advertising to match site content. Many small to medium sized sites use Adsense thanks to its ease of use, flexibility and variety of advertising formats. The system effortlessly serves text links, banners and also video. There are no traffic requirements either, so even sites with little traffic can benefit.
More importantly, the targeted nature of Adsense often equates into higher click-thru rates, since targeted advertising is more likely to appeal to a typical visitor. The targeting in Adsense is based partly on the Google search engine algorithm, meaning any advertisements served are likely to be more relevant than banners from advertising networks. This consequently equates into greater monetary return for publishers.
However, there are some drawbacks to using Adsense, the most notable being the number of poor quality sites using the system. To avoid being tarred with the same brush as trashy ‘For Adsense Sites’, publishers should use advertising units sparingly (no more than two strategically placed units per page should suffice).
Sponsorship
The Sponsorship method can be used in conjunction with, or in isolation of, other advertising. Create interesting content and it’s only a matter of time before somebody will be willing to sponsor your site. By and large, the less sponsorship spots available, the greater the premium a publisher can command, and the higher response rate the advertiser will receive.
Sponsor adverts can take the form of a simple tagline (i.e. “Sponsored by Barry’s Fish and Chips…), an image or text link. There are no rules when it comes to sponsorship, and the variation is as numerous as the number of sites that are advertised. Often the most original sponsorship formats are the most successful, so feel free to experiment!
Pay Per View (PPV)
Despite this being a relatively rare method to generate income online, pay per view could be perfectly feasible as long as the content is exceptional, particularly newsworthy or timely. The concept for pay per view is simple: visitors must pay for a membership to gain access to content. A site could be either entirely PPV or offer small ‘teaser’ articles, which entice visitors to register if they wish to read more.
In order to utilise this method effectively, articles must be unique and deliver real benefit to the user. Content such as tutorials, e-books, historic records, or other ‘insider’ information are prime candidates for pay per view. Examples of this method include dating sites, family tree sites, people records search, online newspapers, etc.
Other Considerations:
Successful content publishers do much more than simply place advertisements on their sites. They create the perfect blend between content and advertising. Think about this for one moment: too many advertisements and visitors will find a site too intrusive. On the other hand, too few advertisements may not generate sufficient revenue. One fundamental rule of thumb that cannot be stressed enough is: put emphasis on good quality content first. Online advertising must always be a secondary consideration. Do this and you won’t go far wrong.
Carefully placed advertisements can actually enhance a Web site, as long as they are relevant and high quality. But beware: poor quality imagery or overly promotional language and visitors may begin to switch off!
Of course, publishers always have the option of taking the moral high ground and accepting NO advertising!