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Friday 11 March 2011

How much can you earn from Adsense

Google's Adsense is the highest paying pay-per-click scheme running (with the exception of Yahoo YPN). The cost per click ranges from anywhere between $0.01 to $50.00. So how much do people really earn using Adsense? This again varies from publisher to publisher and Google's TOS strictly prohibits people from releasing Adsense earnings.

Those of you just starting out with Adsense have probably got low CTR values and not much traffic. This is quite normal and a recent survey showed that the average Adsense publisher is earning less than $5 a day from using Adsense.



You might be thinking - whats the success to increasing your Adsense earnings? Many people will give you Adsense tips and tricks on this and that, but in the end it boils down to 3 things:

Keyword Value
Web Traffic
Adsense Optimization

With the right combination of the above you can improve your Adsenes earnings and keep well above the common $5 threshold.


Let's take a look at a fictitious example which we will call 'Joe Bloggs - Tech Reviews'
Note: The figures used in the following example do not relate to our site or any other publisher. They are used only as a fictitious example. Remember you are prohibited from publishing any of your adsense earnings (except the gross earnings)

Keyword Value
The keyword value determines how much your ads are going to be worth per click. This is driven by your sites content and its not something you have much control over. A good keyword value will be worth over $1 per click to make us anywhere near a pro Adsense earner. In Joe's case he has a 'Tech' site so we will pretend he gets $1 per click.

Web Traffic
Web traffic is highly important for any website not just ones running Adsense. A high number of visitors will produce a high earning rate (driven by CTR). Remember, CTR is only a number, without good web traffic you won't earn anywhere near as much. Let's imagine that Joe gets 500,000 page views a month on his site.

Adsense Optimization
In an ideal world we would like to have all our pages optimized to perfection. In reality this is very difficult to achieve and you should aim as near to perfection without going overboard. The more optimization you achieve the higher your CTR will become. Let's say that Joe has been fairly careful with his optimization and achieves an average CTR of 5%. Remember, the higher the CTR the high the number of clicks per impression.

Ok, putting this all together:

$1 per click (on average)
500,000 page impressions per month
5% CTR

With these statistics Joe would be earning a comfortable $25,000 a month through Adsense.

Now Joe has got really serious and used his Competitive Ad Filter, and put even more effort into Adsense optimization.

New stats:

$1.25 per click (on average)
500,000 page impressions per month
6% CTR

Joe's new Adsense earnings after a little work would be $37,500 a month.

As you can see that's a huge difference with just a little bit of extra work. This is the difference between a pro Adsense earner and beginner. Constantly working to improve your CTR and weeding out MFA sites can improve your Adsense earnings dramatically.


So who earns the most?

Theres not much evidence to prove who earns the most but known top earners are:

1. In demand Blogs
2. Popular community sites e.g. MySpace, YouTube
3. File sharing gateways

The lower end of the scale are:

1. Personal websites (low web traffic)
2. MFA sites (smart pricing takes over)
3. Specialized sites (low keyword value)


Top Adsense Earners

The top earners all have something in common - web traffic. If we take a look at the in demand blog we can take a pretty good guess as to what it might make. An in demand blog most probably has a page rank close to 7 or 8 and a Google search position around 1-5. This means they're likely to receive around 5 million page impressions a month.

$0.5 per click (on average)
5,000,000 page impressions per month
4% CTR

With CTR at 4% and a low cost per click they are still earning around $100,000 a month! That's a massive revenue in anyones books and should be enough to spur any of you on!!

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