Category Archives: Publishing

Publishers Won’t Run Their Own Contextual Networks

Well, at least not in mass numbers.

FAST Search and Transfer, the people who brought us AllTheWeb.com, are soon to launch a product called AdMomentum that allows publishers to create their own “Adsense-like” contextual network for selling to advertisers directly, instead of sharing their spoils with Google or other contextual ad network providers.

Some are pretty excited about the idea, others like Andy Beal are don’t buy it. First, they really aren’t the first to do this as Quigo’s AdSonar and ContextWeb have been around for a few years now. Second, while the time is probably more ripe today for publishers to be ready to roll their own contextual solution for advertisers, I still don’t think the majority of the publisher world is ready to do such a thing.

There are many things I’ve learned over the past two years working heavily in the online advertising space, and three of them are important in this issue.

1. Publishers don’t want to do deal with advertising.
Publishers for the most part want to focus on publishing their sites. They aren’t experts in advertising, they don’t always like advertising, and they only deal with it because they need to pay the bills and they want to grow the revenue generated from their site. I’m generalizing a bit here, but I think it holds pretty true in general. Even if they are knowledgeable and excited about advertising, they really don’t want to deal with much of the complexity involved. They just want to make as much money as they possibly can with the least amount of hassle.

While I haven’t yet seen the AdMomentum platform, it sounds to me like it will take work on the publisher side, and anytime you’re selling to advertisers directly that’s the case. AdMomentum will have to be extremely easy to use for it to be an easier process than signing up for an ad network, pasting some code, and cashing your check.

2. There is a lot of value in ad networks.
This is partially true based on what I just said about publishers not wanting to deal with hassle. Often ad networks are the ones dealing with the hassle. They optimize the campaigns, they aggregate creatives, they host the data and serve the ads, they eat the bandwidth costs, they find the advertisers, they deal with the advertisers, they bill the advertisers, they collect from the advertisers, they pay the publisher, etc. Publishers often wonder and complain about ad networks taking such a big cut. The reality is that ad networks do a lot of work and provide value. Many people I’ve talked to over the past couple of years have wondered if what we do at Right Media threatens the ad network business since we aim to make online advertising more efficient and many see networks as middlemen. The reality is that the networks provide value, and sometimes when you put the advertisers and publishers directly in contact with each other, things work out worse than if you have a network managing the process and taking their cut in the middle.

3. Very few publishers get direct advertisers.
It’s the dream of many publishers out there to have mobs of advertisers beating down their doors to directly advertiser on their site. The reality is that really only the top 5% of publishers ever sell direct advertising. Generally, in order to sell direct advertising you need to either have a lot of traffic, or be one of the leading sites with a great name in your industry. Maybe this is who the AdMomentum program is made for, but those top publishers are already in bed with a lot of people, and one or more of the contextual networks is often one of them. Ad networks provide advertisers to publishers. Advertisers they’d never get otherwise. Does Google take a nice cut? Sure they do, but they bring the publishers a heck of a lot more advertisers than that publisher would ever get on their own. Plus, a smart publisher will sell everything that they can direct anyway (they probably already are), and then use ad networks to fill the rest.

It’s these three reasons that I don’t think AdMomentum from Fast will have much uptake. Running your own show as a publisher takes work, hassle, and the ad networks bring more value than people usually realize.

Facebook May Regret Not Getting While The Getting Was Good

As a recent post by Robert Young at GigaOm brings up, was Facebook “Smart or Stupid” by not taking a buyout offer in 2006?

Traffic is up according to Alexa, so one might think they made the right move and are worth more today than they were in 2006. And what’s not to think that traffic won’t keep going up as there are more college students every year, and now that Facebook is open to non-college students they can stick around after graduating.

However, what good is that traffic if you can’t monetize it well? Robert Young’s piece reports that Facebook isn’t having a ton of luck in this area. If this is true, I see two things happening over 2007. First, they’ll prove that it’s hard to monetize their traffic extremely well, as has really been the case with social networking traffic thus far. And second, social networking won’t be as hot as it was in 2006 when it was really the new and exciting kid on the block. Once those two things happen, will those huge buyout offers still exist? Probably not.

Of course, there are a lot of companies and people working on monetizing social network traffic better, so it’s quite possible that strides are made there. And if Facebook continues to grow and dominate their space, then maybe. But the numbers being thrown around in 2006 were pretty high, so I think they may regret not taking one of those deals when it’s all said and done.

RMX Direct Featured Publisher: Star Media Group

logostar104_jd.jpg

We’ve just completed another featured publisher interview at RMX Direct. Read on for more about Star Media Group and how they use RMX Direct to improve their ad monetization on their online radio sites.

Star Media Group Inc. is a conglomerate of online radio stations that span a number of genres. These stations include www.star104.net, www.club977.com, www.977music.com, www.kmgx.com, www.oldiesradionet.com, www.radiostorm.com, www.club977hitz.com, and www.rdl101.com. Jamie Davis is the President of Star Media Group Inc., and he is our new Featured Publisher.

Vince Panero (VP): How did you get interested in web publishing originally? What were those early days like for you?

Jamie Davis: We started in internet radio years back and were looking for a way to monetize our listener traffic. Audio ads were still new and not very popular as of yet, so we looked to image and banner advertising on a CPM basis. The first months were rough and low in earnings, but after a few months, everything just sort of took off, and we found ourselves growing our revenue every month. It’s been great ever since.

VP: Can you tell us about your online radio-focused website? Having this focus, are there any particular issues exclusive to your site that you had to overcome to make the advertising model work?

Jamie Davis: Our website (websites actually, we operate 3 sub-portals of stations under our parent corporation) consists of several online-only radio station webcasts, each predominantly windows media based. It is imperative that our sites run banner advertising that is parallel to the type of audience we draw in. It’s been tough at times to accomplish that goal, as some of our advertisers have simply thrown any old ad up there without specifically targeting our demographics. RMX Direct has helped with that by providing targeted ads along with the use of their Media Guard system to prevent unwanted ads from being shown. We’ve also had some problems in the past with getting the most money for our inventory. RMX Direct also solves this problem with the bid-based system they utilize.

VP: Did you get into this with the idea that you would make ad dollars from this site? How did you initially monetize your site? What problems did you encounter utilizing these early methods?

Jamie Davis: Originally, webcasting was simply something I enjoyed as a hobby, and eventually, it became more of a full-time job and I was happy to be able to do what I liked to do. Initially, we didn’t really monetize our site; most of our DJs were just in it for the thrill of internet radio and having an audience listening to their picks. After a while, bandwidth became an issue, and we turned to some sort of advertising revenue. We started out with audio ads, but during our first days, times were tough because audio advertising was still very new to the market, and internet radio was pretty new itself. After a while, we decided banner-based ads were the way to go.

VP: Why did you start using RMX Direct as your ad network management system of choice?

Jamie Davis: RMX Direct allows us to rotate our outside publishing accounts in their system and eliminates the need for us to have to install and utilize our own system, such as phpAds or AdJuggler. These systems, with our amount of web traffic, can heavily tax our web server and cause downtime after a few hours of heavy traffic. We can rotate our current accounts in RMX Direct, while at the same time allowing the RMX networks to compete and outbid for our inventory. It really helps us monetize our traffic on a new level, both by keeping our overhead down, and increasing our overall revenue.

VP: What statistical changes have you seen since you started using it? For example, have your eCPM and revenue increased?

Jamie Davis: Our eCPMs as a whole, across our entire inventory measurement, have increased by at least 20%. Our revenue has also increased along the same lines thanks to this. We’ve noticed that much more of our traffic has been monetized, and less defaults and PSAs have been shown across all our advertising accounts.

VP: What do you like most about RMX Direct? Are there helpful parts of it that other ad management interfaces simply don’t offer? And how does it address the specific needs of being an online radio-focused website?

Jamie Davis: I really enjoy RMX’s overall administrative platform. When I log in to the system, I can not only view revenue for the day, but I can also easily rotate all of my ad engines into the mix and set up a rotation I prefer, based on geo-targeting, eCPM, frequency, etc. It really eliminates a lot of the hassle of having to install and administer my own rotation system. No other ad management interface I’ve seen does this as effectively. It really allows us, as an online radio web portal, to manage our ad placements effectively and easily. Our revenue enjoys the benefits of this.

VP: Do you have any tips or tricks that you think others using the exchange might find useful?

Jamie Davis: There are really no tricks to this, but I do have one tip. Keep your eCPMs for your outside networks updated at least weekly. I update ours on a weekly basis, and it really helps our revenue grow. Don’t just set a general CPM and sit and wait, or everything suffers. Keep everything updated on a consistent basis.

VP: Do you have any final thoughts on this “exchange concept” (network transparency and competition, the utility of having just one login, etc.)?

Jamie Davis: This new ad exchange platform has revolutionized everything in the online advertising world as far as I’m concerned. If we could get all of our networks to join into this system, I don’t think I’d have quite as many problems as I have when it comes to running the technical aspects and financial aspects of our company.

VP: Thanks for being a member of RMX Direct, Jamie.

RMX Direct Case Study: CheatCodes.com

We’ve got our first case study video created for RMX Direct. The lucky case study is Steve Jenkins from CheatCodes.com. Steve was very gracious to allow us to interview him and provide some helpful insights into how he’s used RMX Direct to improve the amount of ad revenue he earns from his site.

Yahoo Brand Sites Would Be Better As a Tool For YPN Publishers

Yahoo has announced the implementation of a new set of brand sites that are almost entirely built with the APIs of various Yahoo services like Flickr, Yahoo! Video, Yahoo! Answers, Yahoo! News, del.icio.us, and more.

The first site is a site for the Nintentdo Wii gaming system. Supposedly Yahoo is not doing these in partnership with the brands, but may do so at some point.

I think it’s a great idea that Yahoo! is looking to leverage their services and APIs in ways to create compelling sites and content. But as John Battelle points out, something doesn’t feel quite right about this implementation.

Regardless, I think a better strategy would be to use all of Yahoo’s various content services and make them available to YPN publishers. Make it extremely easy for both technical and non-technical web publishers to pull this same type of content, and in exchange that publisher has to use YPN to monetize the content. Therefore, if I’m a publisher running my own Nintentdo Wii site I can use this same content, and reward Yahoo for providing it by running their ads on it. Sure, they’d need some way to check or verify this, but I think it could be done.

It’s a service that Google could not provide to Adsense users, as they don’t own as much content or as many widely-used services as Yahoo. Why not leverage those strengths into helping win more volume from publishers?

Super Affiliates Session with Shoemoney, AOJon, and Andrew Johnson

Super AffiliatesThis afternoon’s session at Affiliate summit West 2007 was the Super Affiliates session which was a QA format featuring super affiliates Jeremy Shoemoney Schoemaker, AOJon of Wickedfire, and Andrew Johnson of WebPublisingBlog.com.

I was looking forward to this session as I’m obviously a huge fan of web publishing, and these three all have had a lot of success as web publishers and being able to monetize their efforts.

The session got off a bit slow as there was no moderator and no microphone for the audience, and you need a microphone for the audience to ask questions for the most part. Anyway, they just kicked it off anyway with audience members yelling until a microphone arrived. The following is my paraphrasing of the questions and answers from the Super Affiliates.

How do you pick who you work with?

Shoemoney: I basically test everything, the money doesn’t lie so you just continue what works.

AOJon: I do research at Google to see what areas are hot, but I kind of just got out of doing affiliate marketing.

Andrew: I usually focus on specific niches, so it’s companies that have offers in those niches. I like companies that treat their affiliates right. I also do a lot of stuff outside of affiliate marketing, so I don’t always have the time, but at least the reps keep contacting me with offers.

When you get started how do you know where to go and what to do, how do you make an offer succeed?

Shoemoney: Find a company and start to work with an affiliate manager who will give you insight. A good affiliate manager should know and provide you information on what is and isn’t working for sites like you.;

AOJon: I ask my friends to see what’s working, and I also use Google as a big research tool. Also a company should be able to provide you that information. Hey, why is everyone leaving? (people were leaving in the back)

Andrew: On a technical level, I like to do a PPC test and track the results, and try and determine exactly where the point of failure might be. Run tests with each network on each offer and determine exactly what does and doesn’t work.

Shoemoney: With ringtones as an example you want to test different carriers and landing pages, because what works for Sprint may not work for Cingular?

Once you have your PPC campaigns dialed in, what do you go back and consistently test again for? Are you ever satisfied?

Shoemoney: I’m never satisfied, so I do tons of A/B testing and heatmaps like CrazyEgg and Clicktracks to see what’s going on with my pages and seeing where people are clicking and what they’re doing. You have to keep playing with that content, rearranging things. I pay a guy to make 50 landing pages at a time and then rotate them over a month.

AOJon: We don’t spend any time on anything that is going to convert under 3:1. I guess we’re lazy but we set stuff up and don’t touch it until it dies out.

Andrew: I could spend the time, but I get bored with things so I’m often going to look at new markets because that excites me more. I just want to learn as much new stuff as possible.

Why do you prefer CrazyEgg or heatmaps instead of web analytics?

Shoemoney: Use CrazyEgg testing to set up a layout, and you have three different links to get to wherever you want your traffic to click. Heatmaps will show you which one of those three links is generating the most clicks. They may be clicking on the top link, or a button on the left. You can rearrange your navigation to work better. CrazyEgg will allow you to set up A/B testing and archive the layout. I’ll often even put contextual advertising on the landing pages because if they don’t click on my offer I can still make some money off of them since I paid to get them there.

AOJon: I don’t use heat maps.

When do you decide to bail on something?

AOJon: When conversions start pummeling and it starts to suck. After 6-8 months often times a new and profitable niche can become saturated and you lose your ROI. You probably shouldn’t be telling your friends when something works.

Shoemoney: The numbers don’t lie, it’s all about being profitable. I give a new program a day if I know what the results should be.

Andrew: Just look at your spreadsheet and see if it’s losing money. If it’s something minor you can fix, then do it, if not move on. Just because something is dead, it doesn’t mean you can’t come back down the road and use some elements again.

Have any of you ever tried affiliate relationships with web hosts? What tips can you give on really competitive marketplaces?

Shoemoney: Why do I always have to go first? I personally never got into the web hosting affiliate space because it was saturated when I got into the business and I’m interested in so many different things. It’s still very simple in a lot of niches and people overcomplicate it. At a previous event someone asked if you can still make money in something saturated like ringtones, so we picked some artists, bought some traffic on MSN Adcenter and sent it to AzoogleAds ringtone offers and they quadrupled their money the next day.

AOJon: Yeah, web hosting was saturated in 1998. So you guys need balls of steel to compete in that space, so maybe you do incentivized offers where you give your affiliates interesting or unique gifts and prizes. Back in my adult affiliate days, they’d do tiered programs that would pay you more the better you did. They pioneered so many things. They did point prizes where you earned points for signing people up, then give prizes for points.

Andrew: I’d recommend looking hard at the long tail and targeting specific markets that need hosting. How about packaging hosting templates for things like tanning salon businesses and making it a specific sell to tanning salons.

AOJon: You could also go to offer hosting large forums. Not just mine, because mine rocks, but we had a large hosting company who offered to host our forums for free if we’d just put their logo near the top.

You talk about testing as much as you can, so taking the ringtones example, how much media spend or click volume do you allocate to a test before shut it down?

Shoemoney: I’m probably unlike most people driving click traffic. I only pay the minimum PPC amount and focus on huge amounts of keywords to drive volume. You’d be surprised at the weird keywords that end up converting. Like AOL.com converted for me for ringtones.

AOJon: Uh, that’s trademarked.

Shoemoney: Oh, it is? Anyway, when Adcenter first came out they had no cap on the number of keywords you can upload, I took CNET’s database of search terms they made public that had like 27 million unique keywords. I broke out all the unique phrases and uploaded to Adcenter and made a bunch of money bidding the minimum. Of course then I got banned for doing that! There are caps on all the engines now, but it doesn’t mean you can’t have multiple accounts. Not that I do or anything.

What do you do if a CPA company doesn’t pay you? Or has that happened?

Shoemoney: If I get burned I’ll blog about it and put the word out. One guy had a Commission Junction problem and had all this evidence so I blogged about it.

AOJon: I had a problem with Commission Junction, I was doing mortgage leads and a merchant claimed a bunch of leads 30 days later were fraud so they didn’t want to pay $170,000. They need to treat affiliates better. It took me two and a half weeks to four different people to find out I wasn’t getting paid. Go to forums and talk about it. We’re launching a directory, and letting people rate affiliate programs and giving them all equal listings for people to rate. But also letting the programs talk to people as well to figure it out.

Shoemoney: If you post on forums about a problem, you’ll get a lot of attention. Just make sure you’re very factual about what’s going on.

Andrew: If you are a program or network, you need to make it a top priority to monitor forums and address issues that are brought up about your company.

AOJon: I know a lot of people who get banned by Google Adsense or YPN without explanation. We don’t get to see stats from Google or Yahoo on what they claim is fraudulent, but if we want to complain about fraud we have to provide stats. Why don’t they?

Do you use any second tier search engines?

AOJon: I’ve been using them for arbitrage, but arbitrage 2.0 which is a content site that is Adsense and YPN and gives the user what they want to find. So I’d buy cheap clicks on these 2nd and 3rd tier networks. Typically nothing every converts, but it’s a good way to buy cheap traffic and then get a higher paid click from Google. Don’t make the page plastered with ads, but if they click on an ad you’ll make some money.

Shoemoney: When I’ve dabbled with them, and something like Adbrite, and a lot of them deliver a lot of international traffic. If you’re going to pay for it, make sure you have offers that international traffic can convert for. Set up a good geotargeting system to make sure you give people the offers that work for your geography and get the best ROI.

Andrew: I think we should probably clarify to make a difference for something like Adbrite which is on page advertising instead of something like Searchfeed or 7search which have poor conversion rates on affiliate offers.

When I am doing affiliate marketing or arbitrage I feel like my hands are tied because I don’t have control of what the landing page is like that I’m sending people to, what can we as affiliates do to help companies make better landing pages?

Andrew: I think we’re going to see more white-labeling and custom landing pages. I think if you also contact the company and are willing to help them and do some testing for them, they may be willing to work with you. Probably not the largest companies, but some of the smaller ones.

Shoemoney: Some companies like Azoogle will work with you and work with their merchants to make landing pages better. I think the ringtones do a good job with it.

AOJon: Threaten them. If they aren’t willing to work with you, then leave. Many companies will customize offers for you. There’s no reason we have to abide by their rules and there’s so much competition out there between affiliate networks those ones that make the extra effort to work with you will win out.

With forums, how do you go out and start a new forum in a competitive space?

AOJOn: Wickedfire has no ads on it right now, we’re only 6 months old. A lot of time people make forums to monetize them, but you should get the quality up before you put the ads on it. I’ll take this opportunity to bash Earnersforum, they started out and put ads all over the place, we didn’t, and we started doing really well. We’re going to add ads soon, but do it in a simple way. We also did contests to give incentive for people to post. It pissed some people off, but it worked to get some people posting. As it grew we kept giving users what they wanted to get. We don’t censor anything. In an industry like video games that has a million forums, why not start giving away games? That’d get people interested. Don’t focus on ads until you’re already rolling.

Shoemoney: You first mentioned DigitalPoint. He’s owned that domain for about 10 years, and used his forums to support his software, then launched the webmaster forums. He got people to his domain through his free tools as well, and then put his latest posts in a little box on those tools pages so tool users would go join the forums. It’s just a lot of ways to keep acquiring users. I’ve tried a couple of those “pay per forum posts” services and they’ve been horrible. People don’t just sign up for forums anymore to have a place a chat. You have to find good ways to get people to your forums.

How do you compile reports to give to the search engines to report bad clicks?

Shoemoney: We only target USA users, so anything that we get that’s not USA we know it’s invalid. If we see the same IPs over and over, or IPs repetitively clicking then we submit those. The engines are pretty receptive because they do want to keep things legitimate.

AOJon: I’m technically challenged, but my partner over there does. Go talk to him. He’s like a genius or something. You can also call him really late at night.

Andrew: I think we’re done. Here’s a final plug, stop by WickedFire.com, Shoemoney.com, or Webpublishingblog.com, and send us any questions.

Shoemoney: In closing, I think it’s a really interesting time in the affiliate space. It used to be a lot of bulk emailing, but now everyone is realizing the power of search engine marketing. As more affiliates figure this out and get more statistics and SEM tools, it’ll just get better.

VoFiles.com December Stats Update

I’m a bit late on the update, but here’s a wrap up for the month of December for our advertising case study project VoFiles.com. You can also read more about how we set up our initial advertising strategy.

December was the first full month of VoFiles and it started out well as we told some initial friends and coworkers to check it out, and did about an hour’s worth of work with some initial submission of Myspace profiles one night. Traffic really died down though as we moved towards the holidays and didn’t do anything, and the initial momentum didn’t seem to sustain itself. Thus implying that we don’t have the site right yet for social network users to really see any purpose or value in submitting profiles or having people vote for their own.

We did see VoFiles.com start to appear in some search rankings towards the end of the month as we made it into some regular Google results and Google Blog Search results for search terms such as:

  • mitchy the kid
  • the best profile layouts
  • christine dolce
  • tummy sticks
  • vofiles
  • speedini
  • ray lamontagne
  • marc broussard voice
  • dear lord baby jesus
  • christmas profile

I’m not really sure on whether to be happy about those results, shocked, or just confused. I’ll just go ahead and say that January’s terms are even more special.

Overall, the message was clear though that if we want this site to grow and sustain on it’s own, we have to adjust some things to get social networking users to see more value in using it, and get more link popularity to do better with search results for it to grow. Now on to the overall December results.

DECEMBER STATS
User Accounts: 22
Visits: 515
Page Views: 2,978
Ad Revenue: $1.74
Overall eCPM: $0.19
Google Page Rank: 2/10
Alexa Rank: 123,024 (so skewed)

Alexa Graph:

RMX Direct Advertiser Report: (click to enlarge)untitled-1.jpg

Friendster Has a $0.04 CPM

It’s a bit of an estimate, but according to a recent post at Venturebeat, Friendster made $700,000 in revenue in December on 6 billion page views. This equates to making $0.12 per 1000 page views. I checked and they look to average about three ads per page, meaning they’re really making $0.04 per 1000 ad impressions, giving them an effective CPM of $0.04.

Is this good? I’m sure that low of a number shocks some people, probably bloggers and other niche publishers who get really high CPM numbers from targeted advertising, Google Adsense, or Yahoo Publisher Network.

Social networks are a different animal though, as contextual advertising doesn’t work as well when there isn’t a strong context to grab from a page. In the cases of most social networks, display banner-style advertising generates higher rates. But is $0.04 good?

I know the data of some other social networks, and I can say that this isn’t THAT shocking, but I definitely think there is room for improvement. I have some ideas on how I’d improve Friendster’s advertising revenue, but first I’d like to see if any of you out there have any suggestions. Speak up!

RMX Direct Featured Publisher: BigRRadio.com

Our featured publisher interviews for RMX Direct always inspire me and excite me about web publishing, so I like to pass them along here on this blog as well:

Who doesn’t listen to music? Besides the ubiquitous MP3 players we see dangling from people, a substantial amount of individuals get their audio fix from online radio stations: many choices and styles of music, and just a click a way. Richard White is the CEO of one of them, BigRradio.com. He is our new Featured Publisher.

VP: How did you get interested in web publishing originally? What were those early days like for you?

Richard White: Web publishing started with me in 2001. My first site I built was The Edge FM. The most challenging thing back then was coming up with ways to make our site self-supporting. The only source of revenue back then for ‘Internet Radio’ was Banner Ads. Placement of the ads (in the fold) was crucial. One bad day could mean serious financial issues.

VP: Can you tell us about your internet radio-focused website? Having this focus, are there any particular issues exclusive to your site that you had to overcome to make the advertising model work?

Richard White: When we created Big R Radio in 2003 there were huge obstacles to overcome. Numerous issues arise when you have several internet radio stations streaming from one site; millions of people hitting your site all at one time, data bases frying, servers dying, and bandwidth usage out of control. Placing our banner ads properly and adjusting and readjusting until we figured out what works the best for us was and is well worth time spent. (Even though I complain about it ;) ).

Banner advertising is the consistent revenue maker for Big R Radio and our other sites. It’s dependable and they pay well. With other forms of advertising coming into the internet radio world as of last year, audio ads and banner ads are very complimentary with each other. And technology allows us to synchronize the two at the same time.

VP: Why did you start using RMX Direct as your ad network management system of choice?

Richard White: I was referred to RMX from a business partner of mine 6 months ago; we were looking for a more efficient way to manage all the different banner ad companies we were working with. Managing multiple sites, with multiple advertisers is quite the task.

VP: What statistical changes have you seen since you started using it? For example, have your eCPM and revenue increased?

Richard White: Since we started with RMX we have seen a consistent eCPM and of course our revenue has increased. The best thing about RMX is working with the many different advertising companies all in one site. It’s great. The other thing I think is great is the support from RMX. I haven’t used the forums much–that being said, I have browsed the forums and notice RMX replies quickly with professional answers. This is impressive and useful. Of course seeing all the banner ad companies compete for my impressions is something I have wanted to see for a long time!

VP: Do you have any final thoughts, tips or tricks that you think others using the exchange might find useful?

Richard White: I would suggest working with your RMX representative to fully utilize and learn the RMX system. It can be overwhelming at first, and you need to get it dialed in before seeing any dramatic results.

VP: Thanks for being part of RMX Direct, Richard!

Adsense Doesn’t Suck For Blogs. I Think? Right?

I love it when the blogosphere gets worked up and makes generalizations from one piece of data. In this case, that data is Guy Kawasaki’s post about his blog’s performance over the year which includes his Adsense statistics.

The discussion coming out of that post has many people saying that Adsense sucks for blogging, and that blogs and Web 2.0 companies hoping to make big money from it are in trouble.

As with most things in life, it isn’t that simple. Luckily I get to work with web publishers all day, and I have access to a lot of statistics where I can see their results from different ad networks. You can’t just come out and say it doesn’t work for blogging. That just isn’t true.

First, it depends on what your goals are. If Guy Kawasaki’s goal was only to make a few thousand dollars in the year, then Adsense didn’t suck for him. If his goal was to make 50 thousand, then yes it did. The question would then be if his goal was realistic. Adsense, and any advertising for that matter, depends largely on numerous factors that affect how much money you can make from it.

1. Audience

The quality and demographics of your audience can really affect the amount of money you earn. Is your audience valuable to advertisers? Do they react to ads? Do they click? Do they convert? Guy’s audience really is valuable for who they are, but Adsense is only based on the click, and his audience is probably too wise to click much.

2. Site Topics
Ads for products and specific industries pay much more than other products and industries. In Guy’s case, he blogs about numerous subjects and I’m not sure any of them really result in high-paying topics. It’s also harder to get targeted ad buys when your site is somewhat general. Sites that are focused and on a specific topic are often more attractive to advertisers.

3. Traffic Level
I hate generalizations, but most blogs don’t generate enough ad impressions and clicks to make a lot of money from Adsense or other ad networks. If your goals are modest, this is fine. If your goal is to get rich, you’re going to need a lot of traffic, and the blog medium just doesn’t seem built for massive traffic generation. Even the blogs at the top of the Technorati rankings aren’t really getting much traffic compared to a lot of standard web sites out there. I work with sites every day that you’ve never heard of who blow the top blogs out of the water when it comes to unique visitors and ad impressions.

4. Ad placement and ad type
There are a lot of tips and tricks that can be used to double or triple ad revenue depending on the site. Testing various ad locations, colors, sizes, and styles can lead to much better results. It doesn’t sound like Guy was doing any of this, so I’d estimate he could have at least doubled his revenue if he had.

The bottom line though is to branch out to multiple ad sources and revenue streams as Darren Rowse, John Chow, myself, and others have suggested. It’s the best way to grow revenue, and not have all your eggs in one basket.