‘AdSense‘ is a viable option for those craving the sweet revenue that your blog may start making after years of hard work. Statistically speaking, getting paid $1 ~ $2 if someone clicks an advertisement on your blog is pretty damn fucking good, right? Well, here’s some maths to re-bottle that.
‘Word Stream‘ states that only about 2% of all internet users intentionally click on paid advertisements, and the reasons are peculiar. Based on the website, most people intentionally click on paid advertisements for several reasons. Because they did not realize that the advertisement was an advertisement, because the advertisement created a genuine interest, and because the advertisement was well-marketed. People, however, do not click on advertisements for one of the main reasons listed below.
- The advertisement was irrelevant and was not well-marketed, meaning that the advertisement did not appeal to the reader / viewer in any way.
- The reader / viewer is afraid of their internet activity being tracked by clicking on the advertisement.
- The reader / viewer do not trust in online advertisements.
Referring back to the statistic above, we can conclude that an estimated 98% of people will not click on advertisements, and only the other 2% will. Keep this is mind as this comes into play later.
The Juicy Part
Okay! Now that we know an estimated 2% of all internet users click on paid advertisements, let’s get to the juicy part. The math part. Let’s assume that a website owner is paid an average amount of $1.00 ~ $2.00 when an individual clicks on an advertisement. Let’s use the former for this post, yeah? Assume that you earn a solid $1.00 with every click. Sounds pretty good, right? Nope, we still got maths to cover. ‘Google AdSense‘ takes a constant 32% from your share as a commision.
$1.00 (Amount Paid to You per click) – 32% or $0.32 (‘Google AdSense‘ Commission Fee) = $0.68
So to speak, a user earns $0.68 every time a reader / audience clicks on the ad. Still sounds good, doesn’t it? But wait! We’re not done. Remember when I said that 98% of users do not click on paid advertisement and just skips on by? Yep, we take that into consideration as well. Let’s assume that you have 10,000 monthly page views. Well then.
10,000 (Your Monthly Page View) – 98% (People Who Do Not Click your Ads) = 200 (People Who Actually Click on your Ads)
We can then assume that…
200 (Number of People Who Click on Your Advertisements) x $0.68 (Your Average Monthly Earning) = $136.00
But wait! We’re not done yet! According to ‘Google AdSense‘ statistic states that about 10.7% of the clicks are invalid for various reasons. This means that whether or not the reader / audience who clicked on the advertisement was legitimate, you will not be paid. Of course, we haven’t even taken into account income taxes and all that, but feel free to do that on your own, especially if you run your blog as a business.
$136.00 (Your Average Monthly Earning) – 10.7% or $14.55 (Invalid Click Rates) = $121.45
$121.45 (Your Monthly Earning) x 12 (Months in a Year) = $1457.40 (Your yearly income from blogging (not including taxes)).
I know most of you reading this right now can’t be arsed with actually mathematically calculate your estimated monthly earning so I’ll put up a chart below of your estimated monthly earnings. You’re welcome.