Business model for website supported by ads?

10 replies
There are a lot of websites out there that produce content with the sole purpose of generating enough traffic so that ads can be displayed. A website with 100,000 impressions can generate $500 of an ad network if they can get $5CPM rates. This is the business model that I am personally shooting for but have yet to find a good formula in making this work.

Does anyone know of any users on here that operates a website with revenue coming primarily from ads? I'd like to see some of the top posts and strategies relevant to this business model.
#ads #business #model #supported #website
  • Profile picture of the author fpforum
    Lots of people on WF make their money with affiliate marketing, but lots of others do it with Adsense and CPM companies as well. Figure you're probably not going to get $5 CPM all the time. Look for more like $2-$3. I'd say your key things for making good money off ads are:

    1) Lots of Content
    2) Well monetized with multiple ads that are relevant and blended nicely
    3) Traffic mainly from big countries like US, Canada, UK..etc.
    Signature
    Free SEO Software - Start Improving Your Rankings Today!
    Windows VPS Servers - Cheap Windows VPS Servers With Instant Setup!
    {{ DiscussionBoard.errors[10069719].message }}
  • Profile picture of the author Slade556
    Originally Posted by willblieve View Post

    A website with 100,000 impressions can generate $500 of an ad network if they can get $5CPM rates. This is the business model that I am personally shooting for but have yet to find a good formula in making this work.

    Does anyone know of any users on here that operates a website with revenue coming primarily from ads? I'd like to see some of the top posts and strategies relevant to this business model.
    You said it yourself, IF they can get a $5CPM rate.
    And there are plenty of people (here and not only here) who make a good revenue from the ads they place on their websites.
    {{ DiscussionBoard.errors[10069784].message }}
  • Profile picture of the author willblieve
    CPM rate will depend on your vertical. Business and travel can net $10CPM+ while entertainment may get you only $1CPM. Your ability to fill inventory will also impact this.

    If anyone has users or threads they can point me to from users who use this model, it would be greatly appreciated.
    {{ DiscussionBoard.errors[10070389].message }}
  • Profile picture of the author Path Theory
    Originally Posted by willblieve View Post

    There are a lot of websites out there that produce content with the sole purpose of generating enough traffic so that ads can be displayed. A website with 100,000 impressions can generate $500 of an ad network if they can get $5CPM rates. This is the business model that I am personally shooting for but have yet to find a good formula in making this work.

    Does anyone know of any users on here that operates a website with revenue coming primarily from ads? I'd like to see some of the top posts and strategies relevant to this business model.
    Will,

    This is a viable plan as long as you can drive the traffic cheap enough. Me and two of my partners started a content site back in November, similar to Buzzfeed.

    Starting out, our main traffic gen was through fb ads. Since this is outside of the US, we're able to get extremely cheap traffic - sometimes as low as 7-8 clicks per cent. Couple that with 9-10 page views per visitor, and we're turning a positive ROI, based solely on Adsense. Mind you, since this is entertainment, and it's outside the US, we're getting >$1CPM.

    We've been able to scale it, and currently we're over 100k unique a day. Last month we hit 30 million page views. We made more profit in the first few months, because it's been harder to maintain the cheap clicks at this scale. Organic traffic has started coming in, and we've found other ways to monetize, so it still makes sense putting so much money into Fb traffic.

    If you'd like to check out the site, drop me a line
    Signature

    Dental Floss Tycoon

    {{ DiscussionBoard.errors[10071126].message }}
    • Profile picture of the author Steve B
      I'm sure you realize that any business model deriving revenue from ads is going to require you to be able to drive quality traffic at will to your site. Junk traffic isn't going to cut it as your advertisers will quickly realize that your site is not the source of buyers to them. You must be able to drive quality traffic on the marketing budget that you have, and of course, only you know what that is. I would not recommend this kind of business model to anyone just starting out or to a marketer that has limited advertising funds.

      Organic traffic does come over time, and certainly could relieve some of the pressure on your paid traffic, but I am hearing more and more credible evidence that it is getting harder and harder to be profitable with ad supported models due to some ad blindness but also saturation of some markets. If you are a whiz at driving traffic then you will have a chance but if you struggle in that regard, pick another revenue model.

      Steve
      Signature

      Steve Browne, online business strategies, tips, guidance, and resources
      SteveBrowneDirect

      {{ DiscussionBoard.errors[10071145].message }}
      • Profile picture of the author Path Theory
        Originally Posted by Steve B View Post

        I'm sure you realize that any business model deriving revenue from ads is going to require you to be able to drive quality traffic at will to your site. Junk traffic isn't going to cut it as your advertisers will quickly realize that your site is not the source of buyers to them. You must be able to drive quality traffic on the marketing budget that you have, and of course, only you know what that is. I would not recommend this kind of business model to anyone just starting out or to a marketer that has limited advertising funds.

        Organic traffic does come over time, and certainly could relieve some of the pressure on your paid traffic, but I am hearing more and more credible evidence that it is getting harder and harder to be profitable with ad supported models due to some ad blindness but also saturation of some markets. If you are a whiz at driving traffic then you will have a chance but if you struggle in that regard, pick another revenue model.

        Steve
        Steve,

        You're spot on with everything you've mentioned. I wasn't suggesting this model, but I did want to let him know it's still possible. I should have also mentioned we aren't planning to sustain this forever(As time goes on, it's going to get more expensive to drive the same amount of traffic, considering the scale) - Our main goal was to keep the traffic steady for a year+ and than sell the website once it's value reached a certain amount. Like I've said, even though we have a ton of traffic, it's still not profiting as much as you'd think.

        Recently, We've been submitting proposals to large corporations, whose main demo is Latin America - We'd like them to buy out our entire ad space, and we'd be getting 2-3X cpm as what google offers. If we can get that going, I think we'd probably keep the site long term, and focus on scaling it further.

        As you said, it all depends on the individuals marketing budget. There's no reason someone can't do this on a much smaller scale. I will tell you though, this was our first adsense site, so we had to wait a long time before that first payout. It was a little scary, especially with how temperamental google can be. Luckily, our affiliate side was able to support this until it got off the ground.
        Signature

        Dental Floss Tycoon

        {{ DiscussionBoard.errors[10071182].message }}
      • Profile picture of the author willblieve
        Originally Posted by Steve B View Post

        I'm sure you realize that any business model deriving revenue from ads is going to require you to be able to drive quality traffic at will to your site. Junk traffic isn't going to cut it as your advertisers will quickly realize that your site is not the source of buyers to them. You must be able to drive quality traffic on the marketing budget that you have, and of course, only you know what that is. I would not recommend this kind of business model to anyone just starting out or to a marketer that has limited advertising funds.

        Organic traffic does come over time, and certainly could relieve some of the pressure on your paid traffic, but I am hearing more and more credible evidence that it is getting harder and harder to be profitable with ad supported models due to some ad blindness but also saturation of some markets. If you are a whiz at driving traffic then you will have a chance but if you struggle in that regard, pick another revenue model.

        Steve
        Thanks for the input Steve. The main reason I am interested in this model is because I am quite familiar with the monetization of these types of websites. If we break down the website cycle into site development, generating traffic and monetization, I have steps 1 and 3 covered and now I am looking for the most efficient way to work on step 2.
        {{ DiscussionBoard.errors[10074455].message }}
  • Profile picture of the author Robert999
    Originally Posted by willblieve View Post

    There are a lot of websites out there that produce content with the sole purpose of generating enough traffic so that ads can be displayed. A website with 100,000 impressions can generate $500 of an ad network if they can get $5CPM rates. This is the business model that I am personally shooting for but have yet to find a good formula in making this work.

    Does anyone know of any users on here that operates a website with revenue coming primarily from ads? I'd like to see some of the top posts and strategies relevant to this business model.
    I think the main issue is with traffic type and traffic volume. If traffic is targeted with high volume, then you can use both CPM and CPC Ads together. The CPM is normally $1-$2. But how will you get such a high volume of traffic?
    {{ DiscussionBoard.errors[10075763].message }}
  • Profile picture of the author Randall Magwood
    I'm thinking that the business model you're *kinda* looking for is like this one.... a forum.

    Right?

    You should research forum marketing and study all the ways these owners make money from their forum (including WarriorForum).
    {{ DiscussionBoard.errors[10076111].message }}
    • Profile picture of the author willblieve
      Originally Posted by Robert999 View Post

      I think the main issue is with traffic type and traffic volume. If traffic is targeted with high volume, then you can use both CPM and CPC Ads together. The CPM is normally $1-$2. But how will you get such a high volume of traffic?
      Well, that's what I'm trying to figure out

      Originally Posted by Randall Magwood View Post

      I'm thinking that the business model you're *kinda* looking for is like this one.... a forum.

      Right?

      You should research forum marketing and study all the ways these owners make money from their forum (including WarriorForum).
      Not like this site at all. More like a buzzfeed or elitedaily on a much smaller level.

      If anyone is an expert on driving traffic volume and interested in working together, please PM me.
      {{ DiscussionBoard.errors[10096397].message }}

Trending Topics