When it comes to monetizing sites, one route you can take is to sell advertising space. This usually works in one of three ways. The first way is to sell advertising at a fixed rate per period of time (i.e. $50 to place a banner on the top of your site for one week). Usually, you will have to find the buyers yourself in this case (however, there are now sites that will help you with this for a nominal fee).
The second approach is to sell advertising on a on a cost-per-view basis. For instance, you might sell a rotating banner spot on the top of your site for $5 per 1,000 (non-unique) views.
The third approach is to sell advertising on a cost-per click basis. This usually involves usually a third party, such as Google AdSense or Yahoo! Publisher Network. In this case, the third party will collect the payments and transfer a fraction of them to you.
A good site flipping typically involves finding a poorly-monetized site, buying it, improving its monetization, and then re-selling it in a matter of days, weeks, or months.
Often, for content site acquisitions, this means examining how each of the three forms of advertising are used; and then determining whether or not there is a simple, low-cost way to improve it. Let's consider how to improve the use of each of these types of ads.
i. CPC Ad Placement. Typically, when it comes to CPC ads, there's not much to consider other than page placement. The third party-be it Google or Yahoo-finds the advertisers for you; and even generates the blocks of ads to match the content on your site.
It is simply up to you to decide where you are going to place those ads, so that they will generate the most revenue. Surprisingly, this is where many webmasters make a big mistake: instead of attempting to optimize their ad placement, they slap down one block of AdSense ads; and then don't how changing the placement changes the revenue generated.
The following rules-of-thumb can be used to assess where is best to place ads:
1. Always place blocks of text ads above the fold. When a visitor lands on your site, he is most likely to click on and interact with content that is placed above the fold. This means that if you want him to click on text ads, you should place them above the fold, so that he sees them, no matter how much he reads on the site.
2. Do not replace your logo with a block of text ads. Many webmasters have begun this practice in an attempt to draw more clicks. Unfortunately for them, it usually backfires for one of two reasons. The first reason occurs if you have a banner ad displaying. If that's the case, then many will mistake the banner for your logo and won't click. Alternatively, if you have a block of text ads displayed, many who land on your site will think that it is a disreputable spam site and will leave without reading further.
3. Use text link menus. Of all types of Google AdSense ads, these menus of links are perhaps the highest converting. You can either place them directly under your logo and banner to make them appear to be typical menu; or you can place a horizontal stack of them along the left or right side of your website, so that they appear to be a menu.
Many visitors will think they are menu options or "sponsored links" and will click on them, which will send them to a page full of AdSense text ads online. From there, there's a good chance that they'll click an ad.
Overall, if a site isn't using AdSense link menus, it is leaving a lot of money on the table. It could probably have a significantly higher conversion rate without sacrificing much else in the process. Look out for this when buying sites.
4. Embed blocks of text ads within content on your site. Additionally, attempt to pick a color mix that makes them blend well with your site. This will maximize the probability that someone will on one of the ads.
5. Avoid using small or unknown third party ad providers. Often, they will have bad contextual matching technology; and will have weak competition among their advertisers. For this reason, you are likely to end up with fewer clicks and less per click.
So, remember-before you acquire a site, consider whether you could use one of these methods to improve the site's monetization. And, after you acquire one, make sure you put these to work to maximize the profit you generate.
ii. Cost Per View Ads. When it comes to CPV advertising, many sites simply opt to sell space on their sites without help from a third party. For instance, they might sell a banner spot or a skyscraper ad position. Usually, these ads are non-rotating; and the views are based on the number of pageviews registered by a publicly-viewable traffic statistics meter.
Overall, your choice of whether to use CPV ads or CPC ads should be based on which is more profitable for your site. Most of the time, this is likely to be CPC; however, it might not be a bad idea to try both.
iii. Fixed Rate Advertising. If you plan to purchase a site that has high PR or a lot of traffic, one possibility is to sell fixed rate ads. Usually, this involves selling a number of one-way text links on desirable pages.
If you want to use fixed rate advertising by selling text links, there are a couple of things you should take into consideration when trying to get the best price for your advertising spots:
1. The price a link space on a given page will sell for increases as the number of links on that page decreases.
2. The price of a link space will increase in the age of the site.
3. The price of the link space will increase if the link is placed on a highly visible part of the website (i.e. near the header as opposed to the footer).
Overall, when you sell text link ads, your goal should be to capitalize on extra space that you cannot use for CPC ads served by Google or Yahoo. This may allow you to increase your site revenue by about 20-30% each month without adding any additional invasive ads to your site.
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