How Do Websites Make Money With Ads? (Explained)

Advertising is one of the best ways to make money with your website—after all, it is my highest source of income from my portfolio of sites.

How do websites make money with ads?

Websites make money with ads by displaying static and video ads on their site, ad network affiliate programs, pay-per-click sponsorships, in-stream ads, and native ads. Website owners partner with ad networks such as Google AdSense, Ezoic, Mediavine, or Adthrive.

In this article, you’ll learn everything you need to know about how websites make money with ads.

7 Ways Websites Make Money With Ads

(This post may have afilliate links. Please see my full disclosure)
Two people working on mobile website - how websites make money from ads
I created this image with Canva – How Do Websites Make Money With Ads?

Websites make money with ads in a variety of ways. One of the most common ways is through display advertising.

This is where advertisers pay a certain amount of money each time someone reads, views, or clicks on their ad.

There are a variety of different types of ads that website owners can choose to display on their sites, and each has its own advantages and disadvantages.

The seven most common ways websites make money from ads are described below.

Ad Networks

Ad networks are companies that act as intermediaries between website owners and advertisers.

They help website owners earn money by displaying ads on their sites, and they help advertisers reach a larger audience by placing their ads on multiple websites.

Joining ad networks like Google Adsense and Ezoic can make bloggers a lot of money.

As a website owner, you earn money every time someone views an ad on your site. Every 30-60 seconds, the ads refresh and you earn money again from the same visitor.

This is how I earn the majority of my income from four websites that I currently own, manage, and run every day.

Later in this article, I’ll share how to connect your website with display ad networks. For now, just know that this method is a biggie.

Pay-Per-Click Ads

Pay-per-click (PPC) ads are advertisements that website owners can place on their sites that allow them to earn money whenever someone clicks on the ad.

When a website owner signs up to place PPC ads on their site, they will choose which ads they would like to display.

They will then be given a code to insert into their site, which will pull the ads from the advertiser’s server and display them on the page. Whenever someone clicks on one of the ads, the advertiser will pay the website owner a small amount of money—typically a few cents per click.

Over time, these payments can add up to a significant sum of money.

There are a few different types of PPC ads that website owners can choose from, including text, image, and video ads.

Text ads are typically the most common, as they are less intrusive than other types of ads and can blend in seamlessly with the rest of the content on the page.

Image and video ads are often more effective at catching people’s attention, but they can also be more expensive to place.

Pay-Per-View Ads

Pay-per-view (PPV) ads are similar to PPC ads, but they are displayed on websites in the form of video content.

Video ads are a very popular way for website owners to earn money.

There are two main types of video ads:

  • Static
  • Sticky

Static video ads are typically found at the top or bottom of a web page, and they remain in place even as a visitor scrolls down the page.

Sticky video ads, on the other hand, “follow” a visitor as they scroll down the page, always remaining visible.

Both types of video ads can be effective in earning revenue for a website owner, but sticky video ads tend to boost ad revenue the most. The best part is that once you set them up, they are essentially a passive money-machine.

In-Stream Ads

In-stream ads are video ads that are displayed during the playback of online video content, such as on YouTube or Hulu.

These are short ads that play in between informational videos on your website. For example, I created five short videos (under 1 minute each) to loop in a playlist on each one of my websites.

A ad plays between each short video.

Eeach time one of these ads is shown to a visitor, I make a little bit of money. It’s a great way to monetize your content.

Native Ads

Native ads are customized advertisements that perfectly blend in with the surrounding content on a website.

They can take many different forms, but they are typically less intrusive than other types of ads. Many times you won’t even be able to tell that they are advertisements as all.

You can place these native ads throughout your blog post (between paragraphs), in your sidebar, or at the bottom of your articles.

Sponsorships

Sponsorships are paid advertisements that are typically displayed on websites in the form of banner ads or text links.

Unlike the other ads we’ve mentioned, you usually work directly with a company on sponsored ads. Basically, you rent or sell an ad placement on your website.

Depending on how much traffic you get, you can earn a hefty one-time or recurring fee from sponsored ads.

The key to making the most money possible with sponsored ads is negotiating.

You either want a large lump sum for the ad placement or a smaller (but still substantial) monthly fee. If you get several companies paying a monthly fee, you can quickly scale up your site earnings into the hundreds or thousands.

Display Ad Affiliate Programs

Display ad networks can offer affiliate programs that allow website owners to earn money by referring other bloggers to their network.

In other words, affiliate programs are arrangements in which website owners agree to promote a company’s products or services on their site in exchange for a commission on any sales that are generated.

If you write a blog post about display advertising, you can insert links to the ad network and earn referal commissions.

How Websites Can Make More Money With Ads

There are different ways that websites can make more money with ads.

One way is by increasing the number of ad placements on the site. Another way is by increasing the size or placement of ads. And yet another way is by making ads more intrusive, such as pop-ups or auto-play videos.

Here are other ways to make even more money with ads:

  • Increase the font size on your website
  • Use shorter paragraphs in your blog posts
  • Include multiple hyper-relevant images in your articles
  • Embed a relevant video in your blog posts
  • Use 1 or 2 quotes in your articles
  • Include charts or tables in your blog posts

All of these methods can be effective, but they also have the potential to annoy or even repel website visitors.

That’s why it’s important to strike a balance between making money and providing a good user experience.

One way to do this is by using ad networks that specialize in native advertising. Native ads are designed to blend in with the rest of the content on the page, and they often provide a more seamless and unobtrusive experience for users.

Another way to strike a balance is by giving visitors the option to disable or hide ads.

This can be done through ad blockers or other browser extensions. Of course, this won’t stop all ads from appearing, but it will give users more control over the ads they see.

Ultimately, it’s up to each website to decide how to strike the right balance between making money and providing a good user experience. There is no one-size-fits-all solution, but by carefully considering all of the options, websites can find an approach that works for them.

Here is a great video from Carl Broadbent about how to make $1,000+ per month from display ads:

YouTube video by Carl BroadbentHow Do Websites Make Money With Ads?

How Much Money Can Websites Make From Ads?

Websites can make from $0 to $10,000 or more per month from ads.

It depends on a number of factors, including the traffic that the website receives, the cost per thousand impressions (CPM) of the ads that are displayed, and the click-through rate (CTR) of those ads.

Based on these factors, it is possible for a website to generate a significant amount of revenue from advertising.

To calculate an estimate of how much money a website could make from ads, we can use the following formula:

Revenue = (Traffic x CPM x CTR) / 1000

For example, if a website receives 100,000 visitors per month and has a CPM of $2 for its ads, with a CTR of 0.5%, the website could generate approximately $1,000 in revenue from advertising per month.

You can also calculate ad earnings based on RPM

RPM stands for revenue per thousand impressions and is a common way that ad networks measure how much money they pay out to websites. The higher the RPM, the more money a website can make from ads.

To calculate RPM, simply divide the total amount of money made from ads by the number of page views, and then multiply by 1000.

For example, if a website made $100 from ads in one month, and had 100,000 pageviews, the RPM would be $1.00.

The amount of money that a website can make from ads depends on a few factors, including:

  • The niche of the website
  • The traffic to the website
  • The ad network that is being used

Generally, websites with high traffic and/or in popular niches will have higher RPMs, as they will be able to charge more for ads.

Ad networks also play a role in RPM, as some networks pay out more than others.

Of course, there are many other factors that can affect a website’s advertising revenue, such as the type of ads that are displayed and the quality of the traffic that the website receives.

However, this formula provides a good starting point for estimating advertising revenue.

There is no set answer for how much money a website can make from ads, as it will vary depending on the individual website. However, by using RPM as a metric, website owners can get an idea of how much they could potentially earn.

How Do You Get Ads On Your Website?

There are a few different ways that you can get ads on your website.

The most popular and well-known platform is Google Adsense. Adsense is a program that allows you to place ads on your website and earn money from them.

There are also other programs like Ezoic, Mediavine, and Ad Thrive.

Ezoic Overview

Ezoic is a Google Certified Publishing Partner and an industry leader in ad optimization. They work with thousands of publishers to increase their advertising revenue while providing a better user experience for their visitors.

To be approved by Ezoic, your website must meet the following requirements:

  • Your website must have at least 1,000 monthly pageviews
  • Your website must be at least 6 months old
  • You must have Google AdSense or another ad network integrated
  • You must be the owner or an authorized representative of the website

If you meet all of the above requirements, you can submit your website to Ezoic for approval. Once approved, you will be able to access the Ezoic platform and start optimizing your ad revenue.

Mediavine Ads

To get approved by Mediavine, your blog must meet the following requirements.

Your blog must be at least 3 months old You must have at least 50,000 sessions per month You must have a clean and well-designed blog You must publish high-quality content on a regular basis You must have an active social media presence

If you meet all of the above requirements, then you can apply to Mediavine here.

Once you are approved, you will need to install their ad code on your blog. They have a very simple and straightforward process for doing this.

Once the ad code is installed, Mediavine will start serving ads on your blog and you will start earning money. Payments are made monthly via PayPal.

Mediavine is a great way to monetize your blog and earn some extra income. If you meet their requirements, I highly recommend applying to them.

Ad Thrive

AdThrive is one of the most popular ad networks for WordPress sites.

They provide high-quality, targeted ads that can be very profitable for your website. In order to be approved by AdThrive, your site must meet its quality standards and have a minimum of 100,000 pageviews per month.

If you are interested in using AdThrive on your website, you can apply for an account on their website.

Once you have been approved, you will need to add a few lines of code to your site in order to display the ads. AdThrive offers detailed instructions on how to do this.

Once you have AdThrive set up on your website, you will need to make sure that you are meeting their quality standards.

AdThrive reviews each website individually and may reject your site if it does not meet its standards.

If you are approved by AdThrive, you can start making money with their ads. AdThrive pays its publishers on a monthly basis, and you will receive a payment for each ad that is clicked on by a visitor to your site.

The amount you earn per click will vary depending on the type of ad and the advertiser.

The most important thing to remember when placing ads on your website is to make sure that they are relevant to your content. If you have a website about cats, then you wouldn’t want to put ads for dog food on your site. Not only will this irritate your visitors, but it will also likely result in you getting less traffic and earning less money.

Another important thing to remember is to make sure that your ads are placed in strategic locations on your website. You want to make sure that they are visible but not obtrusive. Placing them above the fold (the area of the page that is visible without scrolling) is generally a good idea.

If you follow these tips, then you should have no trouble placing ads on your website and earning money from them.

How Do Simple Websites Make Money From Ads?

Websites that offer free tools, like calculators and converters, can make money from ads.

They do this by driving traffic to the tool. When visitors use the free tool, they see and may engage with the display ads. The owner of the website makes money each time someone sees or engages with one of the ads.

This method is a great way for simple websites to generate revenue without having to charge for their services.

And it’s also a win-win for users, who get access to useful tools without having to pay anything.

How Do Websites Make Money Without Ads?

There are several ways that websites make money without ads.

These include:

  • Selling informational or physical products
  • Providing paid services
  • Affiliate marketing
  • Lead generation
  • Membership site

Selling Digital Or Physical Products

Selling digital or physical products is another great way to make money without ads.

If you have a website that gets a lot of traffic, you can use this to your advantage by selling products directly from your site. This can be anything from e-books to software to physical goods.

The key here is to find products that are relevant to your audience, provide massive value, and offer a fair price.

Providing Paid Services

Some websites make money by providing paid services, such as consulting or coaching.

If you have expertise in a particular area, you can use your website to offer your services to others. This is a great way to make money without ads, but it will require some time and effort on your part.

If you’re not sure where to start, consider looking for inspiration on sites like Upwork or Fiverr.

Regardless of the method you choose, making money without ads requires a significant amount of traffic.

The more targeted and relevant your content is, the better chance you have of driving traffic to your site. Once you have a steady stream of visitors, you can start to experiment with different ways to monetize your site.

With a little effort, you can start earning an income from your website without having to rely on advertising.

Affiliate Marketing

If you have a website with traffic, you can monetize it by signing up for affiliate marketing programs.

Basically, affiliate marketing involves promoting a product or service and earning a commission for each sale that you generate. There are many different ways to go about affiliate marketing, but the most common approach is to sign up with an affiliate network.

Once you’re approved by the network, you can start promoting various products and services.

When someone clicks on your affiliate link and makes a purchase, you’ll earn a commission. The amount of commission varies depending on the product or service that was sold, but it’s typically a percentage of the sale price.

Affiliate marketing can be a great way to earn income passively, but it’s important to remember that it does take some work upfront. You’ll need to find products or services that you’re interested in promoting and then create compelling content that will encourage people to click on your affiliate links.

If done correctly, affiliate marketing can be a great way to generate ongoing income.

Sponsored Posts

If you have a blog or website with a large audience, you can also monetize it by accepting sponsored posts from businesses.

This means that they will pay you to write a post about their product or service on your site.

This is a great way to earn income, but it’s important to make sure that you only accept sponsored posts from businesses that are relevant to your audience.

Note: It’s important to always inform your readers that a post is sponsored.

Lead Generation

Websites can make money through lead generation by displaying advertisements or offering services to users in exchange for their contact information.

For example, a website might offer a free ebook in exchange for an email address.

The website can then sell the email addresses of users who have downloaded the ebook to companies that are interested in marketing to this demographic.

In this way, the website is able to generate revenue while providing value to its users.

Additionally, websites can generate leads by hosting forms that collect contact information from users who are interested in a product or service. For example, a website might host a form that allows users to sign up for a free trial of a new software program.

The website can then sell the leads generated by the form to the software company.

Membership Site

A membership site is a website that charges a recurring fee for access to exclusive content or features.

This could be anything from a monthly subscription to access premium articles to a yearly fee for access to exclusive video content. The key to making money with a membership site is to offer content or features that are valuable enough that people are willing to pay for them.

If you can identify a niche market and create content that appeals to them, you can be successful with a membership site.

Final Thoughts: How Do Websites Make Money With Ads?

These are some of the best ways that a website can make money with ads.

In fact, you can make 5k a month blogging from ads alone.

If you’re looking to monetize your website with ads, be sure to experiment with each method and find one that best suits your needs. And, lastly, always remember to test different ad placements and sizes to see what works best for your website and your audience.

Related posts:

Sources

Researchgate (Online Display Advertising Research)

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