Monday, August 1, 2011

How much money You can make with AdSense?

There’s just no easy answer to this question. Well, okay, there’s an easy answer — it depends. But that easy answer isn’t really useful. The problem is that several measurements impact your daily revenue from AdSense ads, such as

Unique visits: A visitor is considered unique when she visits your Web site the first time during a given period of time. Depending on the metric — the measurement used to track visitors on your Web site — that’s used, a visitor might be considered unique the first time he visits your site in a 24-hour period, the first time in a week, or the first time in an hour. For AdSense, the unique visits measurement is used to help determine the click-thru rate for ads.

Click-thru rate (CTR) is the number of people who click an ad and are taken to the Web page designated for the advertisement. This page is usually a larger, more colorful ad, the opening page of a Web site, or a page that displays more information about the product or service featured in the ad.

Average click-through-rate (CTR): The CTR is the actual number of visitors who click through an ad on your Web site. This is important because you’re paid when users click your AdSense ads.

Average cost-per-click (CPC): The CPC is the amount that advertisers pay each time someone clicks one of their ads. This number varies widely and is dependent upon the cost of the keyword to which an ad is related. For you, as an AdSense publisher, the CPC is the basis for how much you’re paid.

Using these three measurements — measurements which are highly variable — you can estimate how much you could make based on some hypothetical numbers. For example, assume that your Web site gets 1,000 unique visits per day and that the average value of the ads that are displayed on your site each day is $.25 per click (that’s the CPC). Finally, assume that about 2 percent of your 1,000 visitors click through the ads on your site each day. Now, you have numbers that you can work with.

With those hypothetical numbers in place, you can use this equation to estimate how much you might make from your AdSense ads on a given day:
(unique visits x average CTR)average CPC = potential revenue
(1,000 x .02)$.25 = $5.00

Using that equation and the hypothetical numbers I’ve defined, you could estimate that you’d make $5.00 per day, or $150.00 per month. Again, however, that’s assuming your numbers are exactly what I’ve defined here, and they probably won’t be — these are completely fictional numbers used solely for the purpose of example.

Any change in those numbers — more or less visitors, higher or lower CTR, or more or less average CPC — results in different numbers. I can hear you wailing in frustration — “So what can I realistically expect to earn with AdSense?” I understand your desire for solid numbers, but the truth is, I can’t give you an exact figure. More accurately, I can tell you that if your site is well-targeted and has high traffic levels, you can expect to make pretty good money (at least enough to get a check every month). And if your site traffic is slower or your site isn’t as highly targeted, you might be lucky to make enough to pay for your Web site hosting each month. In an effort to keep costs down, Google doesn’t release payments until you’ve earned $100 or more in ad revenues. If you make less than $100 in a given month, your earnings will be held until you reach the $100 minimum. So, if you’re not making enough money, you’ll get your payment eventually, just not right away.

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