Earn fast cash through ad clicks!!
So, you've built your website, drawn users to it, and want to generate some income back. Well, Banner ads are probably the most popular form of advertising on the net. This article should help you get started.
When to start selling banner space
If you are able to sell your banner space (you have an interested buyer or network) - it's probably never too early. Also - by incorporating banners into your website at an early stage -- it gets visitors used to the idea, and also will improve your final site design.
The problem with trying to sell banner ads early, however, is that banner ads don't pay very much per impression or click. As a result, you need to have a reasonable amount of traffic in order to make any real money with them. Plus, many of the Banner Networks require you to have a certain number of visitors/pageviews before you can join them.
A good alternative to trying to make money right off with banners is to join a Banner Exchange. A Banner Exchange is a site that lets you show your own advertisments on other sites, in exchange for showing those same sites banners on yours. The Banner Exchange itself will save some percentage of banner displays for itself, so the exchange ratio is usually around 3:2 (for every 3 banners you display on your site, they will display your banner 2x).
Page Views vs Hits
First, the term "hits" is misleading and should never be used when talking about banner advertising. Loading a single webpage can generate many "hits" to the webserver. The HTML, along with every graphic on the webpage generates a request to the server (aka "a hit"). This number means nothing for advertising purposes.
Now, a "Page View" is what you are interested in. The number of PageViews your site generates in a day/week/month represents how many Banner ads you can display in the same amount of time.
Many Banner ad networks will requires a certain number of Page Views per month before you can join their network. If you are selling banner ads yourself, knowing how many page views you are generating per month can help you estimate how many ads you can sell in a month.
CPM vs CPC
CPM means Cost Per Thousand
CPC means Cost Per Click
Both of these terms are used extensively when buying and selling banner advertising. There are two basic ways that Banner ads are sold - these are either Per Impression or Per Click.
Per Impression - Per Impression advertising means that you earn money based on how many times a banner is displayed on your site. If your website generates 10,000 page views in a month, that means you could potentially display a banner ad 10,000 times in that same month (assuming all pages have a banner ad on them).
When selling/buying Banner ad Impressions, rates are always given in Cost Per Thousand (CPM). So $6 CPM would mean that you would get $6 for every thousand banner ads shown. For that same site with 10,000 page views in a month - if you sold all 10,000 impressions at $6 CPM, you could earn a total of $60 for that month ($6 per thousand x 10 thousand = $60).
Typical CPM rates range from $1 CPM to $20 CPM.
Per Click - Per Click advertising means you get paid a set amount of money whenever a visitor clicks on that particular banner ad.
Per Click Rates are given in CPC (cost per click). So, if your site generates 10,000 banner impressions at $.60 CPC, then you will earn $.60 every time a person clicks on one of the banners. Typical click through ratios (CTR) are around 1%. So, of those 10,000 impressions, at 1% CTR, you would get (10,000 x .01) 100 clicks at $.60/click = $60.
Typical CPC rates range from $.10 CPC to $.60 CPC
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