Danny introduces Earning Money on Contextual Ads and he explains that Stephan Spencers daughter, who was featured on BlogHer, is now making about $900/month by optimizing her Neopets blog. Tons of people are earning money off contextual ads and thats what this session is all about.

The first person who is up is Jennifer Slegg.

She is introducing her session on how to increase revenue, YPN and AdSense, CPA ads, how to protect your account, and what to do when you get suspended.
CPA referral ads: you get paid only when theres a conversion. The problem with is that people choose ads that are not super targeted (e.g. putting a mortgage ad on a hockey website). People are going overboard.Think about the links: think about the words that lead to that page. If youre linking to an article on your page, make sure you have good keywords. Dont use "click here." Similarly, this is an ad influencer and will help you get more relevant ads. Remove the excess: everything can influence ads, such as JavaScript & CSS. Link to those in external files. Use section targeting. For your ad titles, optimize your ad title colors for higher CTR. The best possible title link is hyperlink blue or the slightly lighter version of the hyperlink blue. If your color scheme is red, then use red text.
AdSense on Forums - the big problem is that CTR is low. Change up the color schemes, colors, styles, borders. Enable image ads (they do phenomenally ads on forums compared to elsewhere). Do whatever you can to attract CPM advertisers. You can also bombard guest users with advertising and not so much with your registered users.
He talks about how he gets started making money on contextual advertising. Hes always been interested in creating free services that hed share with other people. His service was a mobile service that people used to share pictures and one with ringtones as well. He then had a revelation at a bank when someone asked how Google was making money. In March 2004, he started running a contextual product, and was making $4/day. This passive income got quite interesting for him. He read a bunch of ebooks and DigitalPoint forums and implemented a bunch of ideas. Within six months, he was making thousands of dollars a day.When you start using contextual advertising: aim for complete functionality. You dont want to try to make money on a site that doesnt work. Making money is a job in itself. Also, try to have thousands of users a day (1000+ uniques a day). The positives to contextual advertising -- and the #1 thing -- is how easy it
google reklam verme is. Cut and paste code and youre making money. Its very simple. The other thing is that with traditional advertising, you used to seek out advertising. You dont need to do this anymore.The negatives to contextual advertising is the lack of editorial control. You can block your competitors as Jen showed, but competitors can put ads on your page that give a bad experience. As Matt Cutts once said, the ads on your website reflect your intent, so you dont want to show them something that you dont approve of.The other negative is that in order to make money, people need to leave your site. But if your goal is to build a subscription, you dont want them to leave. You want to retain your users.You need to be careful about people who are gullible and click on an advertisement on your site and end up being charged money. Its not your ad, but they think that youre backing it. Be careful.The Gray Area: legal vs. illegal (and everything -- a huge gap -- in between). The gray area is so new and so many people are doing innovative/creative things that are not within good or bad, and thats where you can find Shoemoney. The difference between innovative and about-to-be-banned is communication. Therefore, ask Google or Yahoo about a new idea. If Google/Yahoo gives you a canned response, its not exactly a "no," is it? (The audience laughs.) Once, people put images right above your ads. Its no longer allowed. This is clearly defined in the policies now.Contextua Arbitrage aka Search Engine Arbitrage: this is the biggest gray area now. This is when people buy traffic from Microsoft and create a page for Google AdSense and make money from it. Example: BearShare. Its a P2P network. When you install it, it offers to set it up as your start page - you have no choice - you can either Decline or Accept. The homepage is google.bearshare.com, so its getting a huge amount (94%) of traffic. But it turns out that after he asked Google, they found out that the AdSense code was modified and was against their policies. Worse, if you uninstall BearShare, it keeps coming back. Are people really getting banned? Definitely. Check DigitalPoint forums to see. Let Google know and theyll be receptive.
Know your CPC: the most important with contextual product because you have the one-click-and-gone effect. The most money you can make from that click, the better. Tips for success: test everything, dont sell out, use an ad server, apply analytics and heat maps, and COMMUNICATE.The third speaker is Markus Frind of PlentyofFish.com.

He often hears: will I make money from contextual ads, and does it work? Well, he made $10+ million so far. At first, he was making $30/day to start. Visitors wont come back with banner ads, he says. Your site looks like crap and visitors dont want to deal with it. You want people to come again and again so they can click on ads. Really, to grow, never put more than one banner ad on a page. If you do, you wont get very far.When he started, he only had ads on 30% of his pages. Gradually, theyve been added to 70% of the pages. Its important for people to come over and over. The first impression is worth 5-10x as much as the average. Its really important to isolate your impression - frequency capping. If you can shift ad impressions to an ad network or a customized ad center where people can bid on your ads. Some pages have different CTR: its important to have advertisers bid on these certain channels. You want to break out countries. For instance, AdSense may make you $2-3 a day and YPN makes $1 a day. That doesnt mean that AdSense is better than YPN. Break out your visitors.If you have a site where people can log in, break out users by age/ethnicity. Its a smart pricing problem. Certain segments of users wouldnt buy or convert when they clicked. But by breaking to age, you can create separate channels - different CTRs for different age groups increases revenue 40-50%. If youre going to use AdSense for search, you want to put it on Logout pages - right where they want to exit. In the future, everyone is going to based on demographics. Things will be changing in the next 12 months.The final speaker is Bryan Vu from Google AdSense. He adds that Googlers who click on ads from google.com domains dont charge advertisers.

Branding: some of the newer things Google launched are Flash ads, click-to-play videos, and newer formats. Google is also releasing gadget ads - interactive branding mechanisms - theyre working to find the best models for advertisers to get their messages across. Google is working to invest in video content monetization.Another main theme for this year is making advertiser performance work well: e.g. placement performance reports for advertisers to optimize their campaigns. Targeting to demographics (placements for publishers). One of the things publishers can do is create a specific channel (e.g. African American Female channel) and it will show up for those users. You can do the same thing for age breakdowns. Theyre working on these controls and are hoping to maximize on its effectiveness.They also want to offer more education about the content network. Content vs. search networks are very different and they want to focus on content.The last theme for the AdSense team is a large set of new products, such as monetization of feeds (Feedburners acquisition comes into mind). Google is also doing content syndication with the creator of the Family Guy and American Dad. Google is also integrating the AdSense API so that it is compatible with blog platforms, etc. Theres also AdSense for Mobile and the ability to monetize on that.
This was a great session showing how building content rich web sites can make some real income. An important message was if you have an adsense account do not ever click your own ads or you could be banned. I find a lot of interesting relevant Google ads on my own sites. Jenn suggested using ad preview in Google, the problem is I won’t get the same ads. Bryan Vu from Google AdSense told us that when a Google employee clicks the advertiser is not charged. I asked why Google could not set it up so we could click our own ads without incurring a charge. Let’s all ask for that feature on our accounts.
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