Part 4 Advertising
Advertising service-driven online business offering free content or services can lead to excellent ads revenue opportunities by attracting sponsors willing to pay to reach a selected audience. A website will start by creating content useful for users such as review articles of local restaurants, attract users, then sell advertising space to businesses. The main reason why publishers use the ad-based business model because it’s difficult to charge users for content. Sometimes companies go into the trouble of designing and developing apps only to offer it for free to users. They prefer to use the ad-based revenue model.
Other publishers try to use the advertising space for affiliate offers. Affiliate marketing is the process of earning a commission by promoting other company’s products. Let’s say you are knowledgeable about a product you like and use, move it to others, and earn a piece of the profit for each sale you make. In this space, Amazon Associates is one of the first online affiliate marketing programs and launched back in 1996.
Millions of used and new products are available for advertisers to choose from and earn an income of up to 10% as a referral fee. It is also free to join.
If you prefer selling ad space to businesses than your advertisers can choose to pay for one of the following:
- Impressions (usually in 1,000s)
- Or Action
It might be difficult for small business owners to allocate a full-time member dealing with advertisers, negotiating prices and selling ad space. Most bloggers fall into this category of working alone, and they don’t have like a manager in charge of revenue opportunities similar to sports professionals.
For bloggers just starting out and new publishers, there is an easy solution to generate income from advertising.
Publishers can use a simple automated method of selling ads through the use of ad agency like Clickbank and without directly dealing with advertisers. You will need to pay some commission for the service.
There is a whole new world online for advertisers and publisher to buy and sell ads. Thanks to Google, Clickbank, and other advertising agencies in this space you now have marketplaces where advertisers and publishers can get together and make deals. Under one ceiling like a stock exchange, all the transactions happen.
Advertisers can search, find, and bid for suitable ad spaces available on the market. Publishers can sell ad spaces to advertisers with ease and without knowing details of buyers, everything done automatically. Like when you sell shares of a company you don’t know who bought the stock from you, but you receive your money, and the deal closed.
Also, worth mentioning you may need to comply with specific requirements set by ad agency example: The max Number of ads you can place on a single page, In future articles, I will discuss in detail the work involved using ad agencies and do a complete example.
If you want to deal directly with advertisers, then your revenue will most likely increase, but the site owner will require more manual work. You set your own rules for others to follow and you get to keep all the revenue. Otherwise, the automated method is the way to go.