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How to make money from your website Updated information on how to make money online
Internet advertising is like to eclipse the record $8.1.billion in revenues
it took in four years ago. Net advertising began with a lot of hype and the
young industry’s revenues grew rapidly on an annual basis before finally peaking
at $8.1 billion in 2000.
But as the economy headed south, and many of the dot-coms that were buying ads shut down, the market started to shrink - to $7.1 billion in 2001 and to $6 billion in 2002. Overall, Internet advertising reached $7.3 billion in 2003, up 21 per cent over 2002, according to the Interactive Advertising Bureau. EMarketer, a New York research company, anticipates continued double-digit growth of 15.6 per cent, to $8.4 billion, this year, and 17.9 per cent, to $9.9 billion in 2005.
That outstrips the 5 to 7 per cent growth for advertising in general that industry watchers predict. Internet ad spending accounted for about 3 per cent of total US ad spending in 2003, the bureau reported, up from 2.5 per cent.
The Internet finally appears to be living up to its promise of becoming a viable advertising medium. Although advertising on Web sites remains but a tiny fraction of the overall US advertising market, it is one of the fastest-growing segments.
Experts say the Web’s share of total ad dollars will continue to rise as the Internet becomes more wide spread and the media marketplace more fragmented. Internet sites have benefited from improved technology and an increasing number of people who have high-speed online connections. (NY Times)
The projected market size for online advertising market in India in 2004 is Rs 100 crore
Today most companies spend time and money on their website, and also on promotion of the website. There are a large number of news and entertainment related websites today, but very few websites in many specialized fields (especially outside North America) . By sharing your knowledge of your product and field with the visitors to your website , you can easily earn money from your website, without much additional effort . Unlike other mass media like television & newspaper, online advertising allows a great degree of customization and an advertiser selling a niche product, can ensure that the advertisement is viewed only by readers dealing with that particular product. Advertising networks like Adsense (Google) , Overture (Yahoo) , Commission Junction pay owners of websites to display advertisements.
If your website has sufficient general information in your product category ('content' ) , you can apply online to any of the advertising networks . The website should be registered in your name i.e you should own the domain name Advertising networks will not consider websites hosted with a trade portal , where the your home page address is www.****.com/yourcompany/ . Some trade portals charge more than Rs 4000 (approx. US$90) for home page design and hosting, where you do not even own your domain name !. Since domain name registration & web hosting for a basic website costs less than Rs 1400 (US$30), it makes more sense to have your own website , since you can also earn money from your website in future. Learn how to build a low cost website yourself
Unlike other media, you can earn money even from a small website
Some advertising networks do not accept website owners (publishers) from some countries (including India) . Others only consider websites with several million visitors per month.
If your application is approved , you will have to paste the tracking code on your website
You will be paid on a CPC (cost per click), CPM (cost per thousand impressions), or pay per lead or sale basis . The CPC / CPM will depend on the number of advertisers in a particular product category. Many banner networks offer a CPM of US$0.5-1.5 , but with some CPC networks , you can have an effective CPM of US$4-5. So if your website has 3000 visitors a month, 10000 page views, for a CPM of US$3 , you could earn US$30 every month. Not much, but enough to cover web hosting costs. Not many companies offer pay per lead or sale for websites outside Europe & North America and this method has the lowest conversion rate.
Many advertising networks allow publishers to block advertisements of competitors, so you can ensure that only advertisements complementary to your product are shown on your website. For example a CD writer manufacturer can block ads of other CD writer makes, but display ads for CDs
Publishers receive payment via checks in US dollars for most networks .
To protect the interests of advertisers most advertising networks have fraud detection software in place and will disqualify publishers suspected of clicking on advertisements on their own website.
Earnings from online advertisements can be substantial, and many large publishers earn several thousand dollars a month from advertising revenues alone.
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