Wednesday, March 31, 2010

What are the most important factors that affect the AdSense revenue?

1. Keywords – The key to making money with AdSense is the keywords that are used in the content. Ads are displayed from Google AdWords program on your website based on the keywords that are found in the content. If you have used keywords that people don’t use to search, your website will receive low quality ads that have very less pay per click value.

2. Traffic – The second most important factor when it comes to making money with AdSense program and for that matter any other program is the amount of traffic a website receives. Some might argue that it’s more important than the keywords, but out of my practical experience I have seen people making $10 a day out of just 1000 visitors everyday while other websites with similar traffic made only a few cents.

3. Niche of your website – An equally important factor is the niche or the topic of your website. If your website is about a topic which is not at popular, such as ‘how to paint a wall’, then you will not receive traffic to your website. And even if you do manage to receive some visitors, the keywords are not the ones that advertisers are bidding for. So, you will receive low quality and low PPC ads served on your website. Always choose a topic that people will find useful in their everyday life, such as ‘how to tune a car for more mileage’ so that you get visitors.

4. Ad layout and placement – The next factor which is very important is the payout of the ads on a website. If you make your ads appear as ads, people will not click it. But if you make your ads appear as if they are a part of your website, the CTR goes up. I have not seen or heard of anyone to have achieved a CTR of 100%, so there is always some room for improvement. The best CTR numbers are between 5-20%. Anything more than that is bonus to you.

Next important thing to understand is the placement of the AdSense unit. It makes a lot of difference to the CTR depending on the location of the ad unit on the webpage. Remember that when someone visits your website, they always see the upper portion of your website which is also known as ‘above the fold’. Ads placed above the fold naturally receive more clicks than any other ad unit on the page. You will have to experiment with ad placement to achieve higher CTR. Every website has a different ad placement strategy that works best for that site only.

That’s all we have for now, friends! This page will be updated regularly, so bookmark the page and keep coming back to find more information on Google AdSense.

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