Yesterday I ended my post with “Let your ads do their thing. That’s the beauty of ads. The more you publish the more those ads fire. It’s the perfect business model IMO.”
Too many people view display ads as a “last resort” monetization option. IMO, that’s the wrong way to view the lowly (but mighty) ad.
I see it differently. I create sites with the intention to primarily monetize with display ads. It’s not a last resort for me. It’s how I like to roll.
Do you think Walmart begrudges slim profit margins with their being the lowest-cost retailer?
Not at all. They’re maniacal about selling everything at lower prices than everyone else.
Would you start a business if you were told your profit margin would be 2.8%?
That would be $2,800 profit on sales of $100,000.
I know I wouldn’t get too excited about that. Sounds like a ton of work for a sliver of profit.
Yet, did you know Walmart’s net profit in 2019 was $14.8 BILLION?
Awesome, right. Thing is, that’s from $514 BILLION in revenue which amounts to a 2.8% profit margin.
I’m pretty sure you’d get pretty excited with $14.8 BILLION net income, wouldn’t you? I would.
Display ads are like Walmart.
You make less per 1,000 website visitors compared to successful affiliate marketing content, high converting digital products and/or selling products directly (ecommerce).
But the potential for far more website visitors is better. Much better.
If you’re a veteran affiliate marketer and I told you that I have a great online model that earns $15 per 1,000 visitors, you’d probably not get too excited, until… I told you the site gets 3 million monthly visitors.
That’s $45K per month with not a whole lot of overhead.
Display ads are just a different strategy. It’s not better OR worse. Just different.
I prefer it for sure, but I’m not going to tell you that building up a successful affiliate website is bad. I’m just telling you monetizing with display ads can be very, very good.
Making big bucks with display ads is all about two types of volume.
- Lots of great content.
- Lots of traffic.
The content gets the traffic.
That’s it. That’s all you have to focus on.
Don’t let anyone tell you display ads are the worst way to monetize a website.
Bad? No, as long as you pursue a solid strategy that works with ratcheting up display ad revenue.
Jon runs the place around here. He pontificates about launching and growing online publishing businesses, aka blogs that make a few bucks. His pride and joy is the email newsletter he publishes that’s “the best blogging email newsletter around.”
Hyperbole? Maybe, but go check it out to see what some readers say.
In all seriousness, Jon is the founder and owner of a digital media company that publishes a variety of web properties visited and beloved by millions of readers monthly. Fatstacks is where he shares a glimpse into his digital publishing business.