Revenue Generation From Blogs

Blog Revenue - What Kind of Money Are We Talking About?
By David S. Y. Wong

According to a Chitika.com study, $500M in revenue was made in 2006 for the top 50,000 blogging sites. Note the finding that the top 15% of blogs accounted for 90% of the $500M total revenue. This means that lower ranking blogs compete for a significantly smaller slice of the pie.

Here are examples to show the range of monthly revenue earned by blogs (year 2010 figures):

• perezhilton.com, $450,000
• techcrunch.com, $400,000
• timothysykes.com $150,000
• johnchow.com, $35,000
• gofugyourself.com, $6,240
• celebuzz.com, $2,887
• creattica.com, $1,987

The basic premise is to build interesting content to attract new and returning visitors and to use revenue generating instruments such as:

• Google AdSense CPC Ads - When a visitor clicks on an ad, the publisher site gets paid.
• Banner Ads for Affiliate Programs - When a visitor clicks on a banner ad, the visitor is directed to the affiliate webpage and the publisher site is tracked as the source of the click thus earning revenue.
• Link Ads - These are hyperlinks which when clicked by a visitor will result in revenue for the publisher site.
• CPM Ads - The publisher site gets paid a pre-set amount per 1000 ad impressions.
• Building Opt-In Mailing List - Typically a bonus giveaway is used to induce a visitor to sign-up to the mailing list. Internet marketers employ such lists to promote and sell products and services to members of the list.

There are various ad networks with the Google ad network being an example. On the advertiser side, Google offers the AdWords program. On the publisher side, Google offers the AdSense program. The Google ad network then provides the delivery of advertisers' ads to publisher sites along with account tracking and administration for both parties.

Here are a couple more ad networks for illustration:

• Federated Media Publishing (advertisers.federatedmedia.net)
• BuySellAds (buysellads.com)

Content creation is a big part of the business of running these blog sites to generate revenue through advertising and/or affiliate programs. Auto blogging is a means to create content at near zero cost. There are moral and legal implications with auto blogging.

Auto blogging refers to the automatic generation of content for blogs, or more generally websites, as opposed to manual creation of articles and posts. Web scraping is a related term with broader scope where page content, data and information are harvested from the web, to be used for one's own website.

Philosophically, auto blogging may be considered an oxymoron. If blogging is about the expression of the blogger, then how does auto fit in? Especially since it is automatically extracting other people's thoughts and writings.

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