Is online advertising revenue directly proportional to website traffic?

By: Ludovic Harold Tesla                                                                                                                   February 28, 2011

Online Advertisement revenue derives from an array of key factors. These factors can be categorized in groups. Three main groups to be considered are the amount of traffic, website content, and advertisement strategy. These groups do not all directly correlate with traffic but the more traffic adds to your chance of quality driven success by quantity. Many different ad revenue companies have different payment plans but they all have an overall relative method.

When considering the value of viewers many things are calculated. How many unique viewers do you have, and how many of them return. Unique viewers are very important because that shows exactly how many people have seen your site and not. Advertizing agencies want unique views because their product would more likely be purchased. For example they would more likely find success if they showed their product to 100 people 1 time instead of showing it to 1 person 100 times. Other smaller factors like the viewers average time on the site and pages viewed but the main driving factor is the unique viewer count.

Website Content
Many advertizing companies try to place advertisements on your website that are relevant to your content. When your content is original and relevant to a profitable market you would be paid more for your views and clicks. For example if you had a blog about video games would be more profitable than a blog about Pluto. This would be more valuable and could potentially earn more revenue because it has a market that is profitable. Having original content is very important as well because if your content is yours people will have to go to your website in order to view it, instead of visiting any of the other various websites on the internet.

Advertisement Strategy
There is a few different things to consider when you are thinking about your advertisement strategy. You have to find what program would be the most beneficial for you, for example Google Ad-Sense. Even more importantly you need to think of advertisement placement. Many programs only pay for clicks and not even views, so you need to think of placing ads in places where people have to see and may click. Many people place advertisements in the sidebar or bottom of a page which receive minimal payout. Even if someone has a lot of traffic to their website if the ads are not correctly placed not many people will actually click on the ads. The best place is right in the main feature of your page. Place ads in the middle of paragraphs of an article or anywhere you would think someone be clicking near or their eyes have to move over to see your content.

Although there are many important things to consider when engaging in online advertisement traffic is directly proportional to revenue. Although some plans may be different than others, and you cannot predict how many people will click you ads each week traffic is what drives revenue. However efficient your advertisement system is without traffic it simply will not earn revenue. Advertisement revenue is conceived through quality and quantity, when advertizing traffic is an absolute necessity and ad traffic rises on average profits will as well so it definitely is directly proportional.