Effectively monetizing
a website/blog
is increasingly becoming the #1 problem among bloggers in every
niche. It is not a hidden fact that a large majority of bloggers
start a blog or website to earn from online advertisements. However, as they start getting more visitors and develop a followership,
a common trend being noticed is that webmasters and bloggers either
find the CTR to be very low or the overall RPM (Revenue per thousand
impressions) is not impressive. Heck, I’ve personally seen a site with a
million visitors each month, barely taking out the hosting and management costs!
So, in this article, I’m going to present a solution – Conversion
Rate optimization. Conversion Rate Optimization for optimizing ad
revenues.
So, what is Conversion Rate?
Whenever a visitor accomplishes a specified action designated by the webmaster, it is termed as a conversion. For online business, it can be anything from a simple email
signup,
online form submission, newsletters subscriptions to a real purchase. Similarly, for bloggers, this could also mean an ad click, more page views per visitor or a click on the
affiliate banner. One can
calculate
the website’s conversion rate by dividing the total number of
conversions with the total numbers of visitors for a period of time. So,
it’s pretty obvious that, higher the conversion rate, the more you are
earning from your traffic.
Lets take an example. If we have a blog on which we are aiming to maximize revenues from CPC ads,
so, for us, a conversion happens when someone clicks on that
banner/text ad from the CPC ad network. What we are really aiming for is
to improve the CTR and eCPM/RPM for our website or that particular
page.
Next, what is Conversion Rate Optimization?
In simplest words, conversion rate optimization is the process of
improving your conversion rate so that more website visitors are
undertaking the action defined by you as a conversion goal. CRO can also
be termed as the testing, analytics and optimization process which helps convert more website visitors into conversions.
This helpful turning-visitors-to-conversions method is one of the
most trustworthy and proven weapon that allows bloggers to examine
reasons which are stopping website visitors from reading more content on
your website or exploring your CPA Offer. Similarly, it could also mean
improved website monetization for bloggers and publishers, irrespective
of the traffic monetization model they are using on the website
(CPA/CPM/CPC).
Why Conversion Rate Optimization?
If your current monetization strategy isn’t working at improving
website revenues or worse, if you don’t have a monetization strategy at
all, you need to develop a hypothesis and start
A/B Testing.
Using A/B testing, you can create different variations for a web page
and change website elements on each version to see what works and what
doesn’t. In this attention-deficit online world, where visitors merely
scan through your content, small changes can make a large difference.
A website monetization strategy is important for every blog as it
enables you to maximize profits and returns, the very principle on which
the capitalistic markets work. CRO helps publishers improve and develop
a strategy, based on a series of
website stats
and experiments, providing statistical backing to improvements or
changes. Since the optimization process ideally should never stop,
bloggers can always design and implement a better new strategy that
should help in improving conversions.
Ad Revenue optimization
When people talk about Conversion rate optimization, very few think
of the conversion goals as more ad clicks or improved ad revenues, which
is why you will not find a lot of content created on the subject of
using CRO and testing to improve ad revenues. Here are some important,
elements which play an important role here:
- Ad Network – Quality, Relevance and Pricing
- Ad Location
- Unit Size
- Ad Type – Text vs Image
- Ad Theme (Text ads only)
Do’s and Don’ts
Conversion Rate Optimization is not rocket science. However, there
are still some important dos and don’ts, which you should look at.
Whatever you do, always remember – “
All decisions should be backed by statistics“.
I’m not asking you to ignore your gut feeling, I’m just saying that
even if you want to do something which you *think* will work, create an
A/B Test and see if it works for real.
Credit:Corelead.com
Some Case Studies
Small changes in the Ad Location can make a large difference. Take a look below:
Popular blogger Darren Rowse from Problogger.com often performs split
testing. He found that his left-aligned ad received a CTR that was 66%
higher than its right-aligned competitor.
Text vs Image Ads – It is commonly noticed that Text
ads generally drive lower CTRs compared to Image ads, however, the CPC
of text ads is seen to higher and which is why you can actually get a
better RPM/eCPM with Text Ads. Again, this could differ from niche to
niche and I recommend you do a split test to get a definite answer.
Manual Testing vs Using a Tool
The reasons why manual testing won’t work well:
- You need to understand JavaScript very well to be able to split test Adsense ads, manually. Especially, Testing different ad locations, as this can get tricky using JavaScript, unless you are a JS Ninja!
- To fully optimize your website
and realize its earning potential, you may easily need 100s of
variations. Let me tell you why. A typical website has 6-7 Prime spots.
For each spot, you can test at least a couple of Ad Sizes. For each
location and ad size combo, you can choose to test Image vs Text Ads.
Next for Text ads, you should try at least 5-6 different color
combinations. Google also let you use different fonts and font sizes. So
the number of variations easily run up to 100s and it would be waste of
time to create each one manually.
- You can’t implement Continuous optimization algorithms. In simple
terms, the algorithm shows 100s of variations on your website, finds the
best one using split testing, automatically sends most of your traffic
to the best performing variations. Now, after some time, as soon as
banner blindness kicks in, it will automatically notice the decline and
show other variations to find the winner ad combo again. So, it
constantly works without user involvement to keep your ads optimized.
Doing this manually is next to impossible.
There are a lot of other reasons too, but you get the idea. This is
the reason why I recommend bloggers to use an automated split testing
tool.