How Much Do Websites Make From Ads?

Ads are one of the chief monetization strategies for websites. If you’re thinking about starting a site specifically for its ad-earning capabilities, you’re probably wondering about the capacity to earn money advertising makes possible. Unfortunately, the answer to this question isn’t as straightforward as you might think.

So here, we’re going to cover two major questions: how do websites make money, and how much can be earned? By the end of this post, you should be able to identify the best pathway for you to generate revenue from web ads.

What is Website Advertising Revenue?

Website advertising revenue refers to the income generated by placing ads on a website. When we look at how websites make money, this income stream is one of the key ingredients. For high-traffic sites, this can be very profitable since they can expose the advertiser’s content to a large audience.

And how do websites make money through advertising? Well, there are a number of revenue models that may be used based on the site platform and the advertiser’s goal, but here are a few revenue models that may be followed:

Cost per mille, which pays per 1,000 ad impressions;
Cost per click, which pays for every click;
Flat rate, where the company pays a fixed fee based on a contract.

How much do website ads make? This will depend on many factors, which we will further explore in this post.

How Much Does an Ad Make Based on Its Placement?

Like with real estate, it’s all about location, location, location! Different ad placements will have a different impact on profitability. So, how much money can you make from ads on your website? Various factors will come into play, including the visibility of the ad and the appropriateness of the content itself to the surrounding format.

In the following subsections, we’ll discuss how websites earn money based on common ad placements. We will cover the most frequently encountered ads, but there are others out there. The comparisons are to demonstrate the differences among all options, helping you gain a better understanding of how much a website can make from ads.

Above-the-Fold vs Below-the-Fold Ads

Above-the-fold refers to ads that are visible on the section of a web page shown before scrolling. Consequently, this placement can affect a user’s first impression of the page. But how do websites make money more effectively this way compared to the below-the-fold counterpart? The following factors may have an effect:

It ensures the greatest visibility, even if the user bounces back to the search results;
Users read in an F-shaped pattern, which makes the top part of the page prime real estate. This influences how websites make money with these adverts;
Anything presented first is perceived as more important.

There’s no straight answer on how much money you can make from a website. But generally, above-the-fold ads are expected to perform best.

Sidebar vs. Banner vs Interstitial Ads

Even though below-the-fold doesn’t perform as well, it’s still important for website monetization. After all, if the content is good enough, some users will still scroll down and see the other ads on the page. How can these placements contribute to revenue? The three most common below-the-fold ads are sidebar, banner and interstitial. We cover the most relevant information on using these ad types for monetization in the following subsections.

Sidebar Ads

Sidebar ads are found along the sides of the page and are normally tall and narrow. How do websites make money with sidebar ads? As the user scrolls down, these adverts will remain visible. This helps attract advertisers looking for prolonged ad exposure. However, perhaps the more appropriate consideration is how websites make money with this method.

Again, this depends on the pricing model. If you’re paid per click, advertisers pay more on average. Even then, significant revenue is dependent on how compelling the ad is. If the site user constantly ignores common ad placements like sidebars, you may want to consider other methods and continue to study how websites make money.

Banner Ads

Banner ads were the first type of advertisements to be placed on websites. They can be placed within the content or at the footer, providing the company or advertiser multiple placement options and playing an important role in how websites make money. Depending on the ad content, these placements risk being intrusive, which can repel engagement from users. Despite this potential issue, these ads are still a viable option if you want to make ad revenue on your website because they support rich media. This allows the advertiser to introduce video, GIFs, audio and other elements that can help generate significant revenue. How do websites make money (and a lot of it!) using banner ads? They do so by working with advertisers that can provide ads relevant to the user’s browsing experience.

Interstitial Ads

This type of ad is growing in popularity among mobile users. Interstitial ads briefly take over the entire screen as you scroll down the post. Websites can monetize this ad placement by creating content that keeps readers engaged. However, there’s an element of intrusiveness since it creates a full-screen overlay. So, when assessing a website's earnings, consider that this could impact ad profitability on click-based pricing models. Let's hope that any potential frustration with the overlay is outweighed by enthusiasm for your content.

How Do Websites Make Money Based on Ad Placements? There is Simply Not Enough Information

Ad placement is important, but so is context. How websites make money can’t be boiled down to just one thing because there are a lot of moving parts. For example, a carousel ad may not do well for mobile above the fold because there simply isn’t enough space. If you want to earn advertising revenue with your website, remember there’s never just one element to focus on.

For more information on how websites make money based on appropriate placements, we’re pleased to present our ultimate guide. Learn how to select the right placement based on the purpose and content of the ad.

How Do Websites Make Money? Look to Native and Video Ads

Native advertisements allow promotions without detracting from the user’s browsing experience. Meanwhile, video ads get them reeled in. This is good news for those still wondering how websites make money. Both advertising models have been very effective in hitting KPIs, which will further encourage companies to invest in paid promotion. This means more demand for ad space. And to get video ad revenue, it will help if your website already features multimedia content. But how do websites make money from videos if there’s a preference for text content? Even websites that focus on text can place multimedia ads between walls of text.

How Does a Website Make Money? Ad Networks and Direct Ad Sales Are the Gateway to Loads of Cash!

If you’re a website owner, there are two ways to approach monetization. But before we get to that, let’s talk about the common ways that businesses of any kind generate earnings: either by selling their product or service directly to their target market or by enlisting marketers or affiliates. Websites make money in much the same way. In the following subsections, we’ll look more closely at your options for selling ad space. Read through the various considerations for generating revenue.

Direct Ad Sales

With this method, you’re sealing deals with companies and advertisers without a third party. Let’s go back to the question of how websites make money. For direct ad sales, your focus is on building relationships with advertisers and deciding which ad spaces you’re going to sell. If you have a high-traffic website, we strongly suggest looking into this as you explore how websites make money. Doing so can get you the following benefits:

More control over where ads will be placed;
No intermediaries, which means higher revenue ads;
Opportunity to run custom campaigns for your advertising clients;
More stable income possible with long-term or fixed contracts;
More control over what ads are displayed.

All of these factors are key to understanding how websites make money with advertising.

Ad Networks

Ad networks like Google Adsense help facilitate ad revenue with little to no effort on your part, which leaves you with more time and resources to explore how websites make money. Through ad networks, you’ll be able to enjoy these advantages:

A greater pool of potential advertisers;
A streamlined process that removes the potential for errors or inefficiencies that can dent your revenue-earning potential;
Performance tracking that gives you more insights into how websites make money more efficiently using advertisements.

Get the most value by using Google Adsense with MGID to gain access to a personal manager who is an expert on how websites make money. They’ll be in the best position to help you make your next move.

The Power of Utilizing Multiple Earning Methods

How do websites generate revenue? As you’ve seen, there’s no single method. Both approaches have advantages that can greatly benefit any website owner. So, why not use both to maximize advertising revenue? You can have the best of both worlds by building relationships with high-value advertisers while still being efficient in your monetization strategies. Ad networks are a great option if you want to reduce the workload, leaving you with more time for other income-generating activities.

How Do Websites Make Money from Ads? Your Tips for Success

There are many factors related to website profitability that you have no control over, such as the use of ad blockers and current market conditions. So, how can you still generate revenue from ads despite these issues? Focus on the things you can control.

Expand on the content your site covers.
Regularly explore new monetization strategies beyond what you’re already doing and implement those ideas.
Consider using paid ads to attract more profitable audience demographics.
Recognize that user experience plays a crucial role in generating revenue.
Don’t overstuff your pages with ads.

It’s not always about optimizing your campaign. The quality of your website matters a lot!

How Much Money Do Websites Make From Ads?

Unfortunately, there’s no simple answer because there’s such an immense variety of websites out there — over a billion! The solutions for generating revenue are clearly different for a newly created blog site than for one with millions of visitors every day. The same logic applies when examining profitability. Just like there’s no single answer to how websites generate income, there’s no single number that can completely define what the average website earns. There are too many outliers in terms of ad revenue. So, in the following subsections, you’ll learn more about how to measure and gauge your website’s earning capability.

How Do You Measure Advertisement Revenue for Websites?

If you want to accurately measure what you are earning from your website, you need to consider the following:

Identify how websites make money in ways that are relevant to you. This helps you identify what you have to measure.
Set up tracking tools and platforms. We recommend Google Analytics, Google AdSense and MGID to gain relevant insights related to how websites make money, like traffic data, user behavior, conversion rates and more.
Calculate. This part is just basic arithmetic. If you want to check how much a website is earning, multiply your ad placement rate with the relevant metric. For example, with ten thousand impressions, you’ll earn ten times your CPM rate.

Which Factors Affect How Much You Make Off Website Advertising?

These are the main factors that determine a website’s profitability for advertising.

Website traffic: How much traffic does a website need to make money? There’s technically no minimum requirement; what matters most is the quality of the traffic.
Ad formats: How can you estimate which ad formats are earning the most revenue? There’s no need to! Rich formats historically have higher conversion rates, and they are normally more expensive to place.
Audience demographics: How do websites make money? The audience must be a great match for an advertiser’s ads. If it’s a good fit for many, the demand for placements will be higher.

How Much Money Do Ads Make on Average?

As mentioned, there’s no established average because there are just too many factors that can affect earnings. However, to give you some insight, here are some statistics from Wordstreams:

Businesses have an average of 200% return on advertising spend;
The average CTR for display ads is 0.46% for Google Ads;
The average Google Ads CPC is $0.63 for the display network.

These numbers provide a general idea, but specific ad formats or placements can result in wildly different outcomes.

Website Ad Revenue According to Monthly Page Views

What is website traffic worth? If conventions were to be followed, 500 thousand views can get you anywhere from $1,000 to $5,000 a month. How websites make money still depends on the industry and this accounts for the huge range in terms of earning potential. Some sites are also simply worth more to advertisers than others.

And how much website ad revenue does a website make per user? Just divide the total revenue by the number of unique users. Set a baseline to properly identify how websites make money. If the resulting number decreases, it may mean that the new traffic that you’re attracting isn’t a good match for advertisers.

How Much Do Ads Pay on Websites Based on Niche?

If we’re going to base it on the cost per click, the industry benchmarks for the Google Display Network don’t vary a lot. Except for dating and personals, the average cost per click is below $1. Generating significant amounts of traffic is crucial for revenue. These benchmarks set the average for hospitality at $0.44, followed closely by $0.45 for e-commerce. How much a website can earn also depends on other metrics, such as the cost per action.

How Do Websites Make Money? It’s All About Elevating the Value of Your Website

It is true that some niches are more profitable than others, but that shouldn’t create a limiting belief in your head. Learning how websites make money starts with having a good product (your website!) that will sell like hotcakes to advertisers. Focus on driving quality traffic to your website, and your advertising income will follow.

At this point, you already know how to set up everything, from choosing the most appropriate ad formats to measuring your success. But how do websites make money consistently? They get help from experts like MGID. Register on our platform to access a range of resources designed to generate the highest website ads revenue.