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Does Pay Per Click still generate revenue?

22. October 2008 13:43 by Scott in   //  Tags:   //   Comments (41)

There are alternatives to the monopoly that is Google.  Adsense these days has close to a strangle hold on advertising on the net.  Not only is it in the blogsphere, but it is also coming to mainstream on Yahoo and Amazon.  When I first started blogging, the default was to go with adsense.  I am not trying to make a living off the blogs I have, but I am asking to be reimbursed a little for the time spent.  I enjoy spreading information around the net and enjoy the feedback I get for it, but compensation is also very nice.

Google currently has more than 60% market share on advertising and it will only increase if the Yahoo/Google deal goes through.  Google has also stated that they make over 98% of their revenue from advertising.  When I first used Google adsense, I wouldn't make any money.  Pennies would trickle in slowly and it seemed to go no where using the "Pay per click" model I was using.  The revenue isn't there even though Google makes so much revenue from it.  So where do they get it you say?  Selling ads.  That is it.  They make their money selling ads to companies and people willing to buy them.  To this model the companies do make out fairly well only getting real cost for performance.  The problem with this model is the click fraud.  There is a lot of it and it will never stop.

Below is the best representation of what you would expect to make using each system:

  Sold Through Revenue
Level 1 AdSense Google $1 CPM
Level 2 Affiliate Programs Amazon, Buy.com, etc 1-2% sales
Level 3 Traditional Ad Networks ContextWeb, ValueClick, AdOn, etc $1-$2 CPM
Level 4 Automated Text Link Ads TextLinkAds $25/link
Level 5 Fixed Text Link Ads (direct) $50/link
Level 6 Graphical Banner Ads (direct) $5-$20 CPM
Level 7 Fixed Monthly Sponsors (direct) (negotiated)

I want to propose that we stop adopting the adsense model.  Not because Google isn't a great company because it very much is, but because this system doesn't truly pay out for the small timers like me and every other blogger that can't sell direct advertising on their blog or domain.

I have a new system that I say should be looked at.  I found it just a couple of days ago and hoped that it would do me good. I don't get many hits on the site, but using this application means I get paid for EVERY SECOND that I have ads on my site.  I am not talking monthly, but every second there are ads on my site, I get paid.

The application is called Project Wonderful and they have an idea on how to do things.  PW works on a bidding system, kind of like a FREE MARKET SYSTEM. The market decides how much you make on each ad.  With over 8,000 publishers on the system, I am always getting ads on my site for it.  I am always making money and proud of it.  I don't bring in as much as the other well established bloggers, but I now make profit on my site as a whole.  They pay out at every $10.00, so you no longer have to wait to reach a hundred dollars like Google.  PW also won't shut you down for click fraud of any sort.  I heard stories where bloggers were accused of click fraud and lost ALL of their money with Google.  Well above the $100.00 mark. I now am trying this PW application and will see how it works.

So far it has treated me well and I am currently happy with the result.  I ask that if you are using Google Adsense or Text link ads or any other system that doesn't pay you direct.  Go ahead and try PW.  I can't promise it is the best system out there, but for a small timer like me It Works!

I do ask though, if you like it.  Spread the idea around!  Get more bloggers and more advertisers using PW. I think it definitely needs to infiltrate the NERD and TECHIE market of bloggers to be successful!

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Comments (41) -

Squashua
Squashua
10/23/2008 2:54:06 PM #

Project Wonderful has been around for over a year now, and was primarily introduced to the comic strip blogs / hosts, and has since made it's way towards mainstream.

scott9s
scott9s
10/23/2008 6:30:44 PM #

Have you seen http://www.pepperjamnetwork.com/

cheetahtech
cheetahtech
10/24/2008 6:47:30 AM #

I have seen pepperjamnetwork, but thought it was only an affiliate network.

Mike
Mike
10/24/2008 7:06:23 PM #

It really depends on how you want to monetize your websites, for example there are a lot of sites that can not make any money with affiliate products or direct sales, so Adsense really helps them a lot, in other cases affiliate programs work best.

It really depends on the site and content.

Mike:
http://www.BuySponsoredLinks.com

lowell
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10/27/2008 9:01:04 PM #

all that revenue potential analysis doesn't do any good if the blog itself doesn't have an audience.

you have 5 on feedburner.

no content, no blog. good content, good blog. step your game up and the rest will come naturally.

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