Thursday, May 31, 2018

Beginner's Guide: Define Ad terms and Ads definitions

If you are new to blogging, i.e. newbie blogger, and you want to earn a huge amount of money from your blog via monetizing it with some popular advertising or publishing agency. Then there is no solution to your problem that I know.

What you need is patience, if you remain patient and keep doing your job on your blog, i.e. writing content rich blog posts and giving relevant information about some topic, only then you can achieve success, which is every blogger's main target.

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Beginner's Guide: Define Ad terms and Ads definitions

Earning from a blog is now a much profitable source of income as compared to what blogging was in the past due to the increased opportunities of earning given by different websites which mainly constitute advertising and ad publishing websites.

Although apps like AdBlocker have somewhat reduced the profit margin but that does not mean that bloggers can't earn. Also affiliate marketing tends to be a source of income for bloggers which have lots of pageviews.




Before telling you about those sites that tend to help to increase earning opportunities from your blog. I will tell you about the things that matter when you publish ads and how they are interpreted. You need to have an idea of these things, although you will cater them at one point or another in this field. But it would be better if you know about this stuff ahead of time.

Website Traffic

After entering the "blogging industry" your main goal becomes getting as much traffic as possible for your blog. The word "traffic" here describes the number of visitors your blog gets. With over 2 billion internet users in the world, internet traffic tends to grow more and more everyday. However, there are different ways to get taffic, one of them I mentioned in this article.

Website traffic is divided into two main categories. One is the valued one called targeted traffic, that visits the blog for information and service, spends some time, comments and/or share to social media, and eventually makes a purchase or clicks an ad (not every time though). The other category of visitors is the one that has no value for your site and is there because of a misclick.

Why you ask is website traffic important? Because some advertising companies don't give ad access to publishers so easily, you need to have a blog that gets at least the minimum amount of traffic required for approval. Different sites have different requirements.

Some have a requirement of five thousand pageviews a day, and some have more, to qualify for these websites. Check the picture below for reference from AdRecover. A popular advertising company:





Getting to 100,000 pageviews takes a lot of time and hardwork. However it gets easy as time passes by. The blogger in turn becomes the publisher for these advertising sites. And gives them ad space within his blog.

Pageviews

Pageviews is the number of times the browser has opened your website (including all its pages inside) it determines the quality of traffic on your website. If a visitor tends to stick around your website for long and also visits different pages before leaving, he is said to be quality traffic.

You can say someone interested in your content is quality traffic. On the other hand people who skim through your posts and leave as soon as possible are low quality traffic. Your blog's popularity determines the quality of traffic you get.

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Related: Websites to help you earn from your Blog

Ad Clicks

If you place an ad of an advertising company on your blog and your blog's visitor is interested in that ad and he clicks on it, then you earn a small amount of money for that click from the advertising company. This earned income for a click is between 0.01$ to 3$. Some say that they earn about 15$ for a click, but those are different kind of ads and I don't want to get in that type of industry.

On the other hand, this is the best way of earning from your blog. If you have a stream of visitors coming to your blog, your blog will start earning more and more steadily.

Ad clicks are very important as they determine the Cost Per Click (CPC) and Click Through Rate (CTR). Most blog revenue is generated by ad clicks and impressions.

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Click Through Rate (CTR)

Ad clicks generally have a Click Through Rate (CTR) which is the percentage of ratio of number of ad clicks to the number of ad impressions. i.e.,

CTR = Total no. of Clicks ÷ Total no. of impressions x 100%

Usually the CTR is very low, almost 0.1-2% because not all visitors tend to click on ads. Also the visitor doesn't just come to your site for ads. They surf around your website for interesting content until they finally finds the ad interesting.

Different ads have different rates but this does not effect the CTR. A high CTR is actually dangerous as it implies invalid clicks. Advertising agencies take the matter of invalid clicks quite seriously.

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Cost Per Click (CPC)

As the name suggests cost per click is the cost of each ad click. It is the amount of revenue an ad earns you when it is clicked. Ads have different CPCs depending on the advertisers, the ad type and the visitor that clicks on it.

How do they effect the CPC you ask? Here's how:
  • Advertisers determine the budget of an ad. So it is pretty much controlled by them. Their budget defines your earned CPC.
  • The ad showing on your ad space also defines your CPC. Video ads tend to have higher CPCs as compared to text ads.
  • If you are using contextual ad services, the visitor also determines your CPC. Visitors from western countries tend to give out higher CPC then from the subcontinent or any other place.

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CPC is also referred to as EPC (Earning Per Click) in some websites.

Related: Websites to help you earn from your Blog

Invalid Clicks

Do not ever try to click on your own ads for money, because some advertising companies call these types of clicks as invalid clicks and your account of that advertising company gets taken away from you at the moment you make an invalid click.

Although, you can try to make a new account on that advertising website through some other ID, but companies like Google Adsense readily disapprove accounts like that and there remains no way that you can get back to that advertising company again. We can say that you get blacklisted for invalid clicks.

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Ad Impressions

Ad impressions are the number of impressions your ad gets by a visitor when he opens your blog. For CPM ads, showing these ads determines your earned revenue. But now-a-days advertising agencies dont pay for all impressions. They have further divided these impressions into categories like:

Blocked Impressions

Ad impressions for which no auction was placed by the advertisers and ads were not served for these impressions.

No Bid

Ad impressions for which an auction was held but their were no advertisers who bid on it and ads were not served for these impressions.

Your blog's income is determined with ad impressions which are calculated by their average cost per thousand impressions (eCPM).


Average Cost per Thousand Impressions (eCPM)

eCPM is the average amount of money earned for a specific ad unit divided by the total number of impressions that ad gets times thousand. eCPM stands form "average Cost Per Mille," which means the total amount earned for thousand views of an ad. The word "mille" means thousand in Latin. It is calculated as follows:

eCPM = Total revenue ÷ Total impressions of ad * 1000

For example, if your ad unit earns you 5$ and gets 5000 views during that then your ad's eCPM is

eCPM = 5 ÷ 5000 * 1000 = 1$


Page Revenue per thousand impressions (RPM)

Page Revenue per thousand impressions is the revenue you earn for thousand impressions of ads. It is directly related to the number of ad impressions you have in a day. Usually the RPM is calculated as follows:

RPM = Revenue earned ÷ Total Ad Impressions * 1000

This is somewhat a new terminology, that has not been used by many ad networks except Google Adsense. 


Active viewable CPM

This is a type of CPM earning technique  for which publishers earn when an impression is recorded to be atleast 50% viewable for atleast one whole second. 


Related: Websites to help you earn from your Blog

Sales and Leads

Sales and leads are two terms that are related to affiliate marketing. These terms requires visitors to do more than just click ads, instead they have to perform specific tasks only then is the publisher paid for task.

Sale

In order to generate a sale revenue, the visitor must make a sale in the appropriate ad. The publisher then gets his commission from this sale.

Lead

In order to generate a lead revenue, the visitor must perform a specific task in the appropriate ad. This task may vary from advertiser to advertiser like making a download, getting a sign up on the website or newsletter, etc. The publisher then gets his commission for this lead. The advertisers that support this are called pay per lead. 

Conversion Rate

Conversion rate is another term used in affiliate marketing. It represents the number of sales you get to the total number of clicks. It can be represented as:

Conversion Rate = Total no. of Sales ÷ Total no. of  Clicks * 100


Conversion rates are usually low, almost 0.1-1.5%. But this doesn't mean people can't get sales with low traffic. This is just an average value. It totally depends upon the nature of traffic and visitors on your website.

That's all folks, these are almost all the general ad and affiliate marketing terms you could encounter within the future. However, it would not be wrong to say that these terms keep on changing with time and also some websites have some terms specific to them.

Hope you liked the article. I hope this article helps you, I will be writing more on these sorts of Articles. I have started a Beginner's Guide tag so as to help new Bloggers and Youtubers. Don't forget to follow my blog Ali Khan Blogs on facebook at Akblogspk.

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