How Ad Budgets from Companies Affect Online Advertising

With a few websites that generate their revenue from advertising, I have opted to use Ezoic since they have turned out to get the best results out of my websites. What is interesting, recently, is that Ezoic sent an email explaining how the summer rates, and advertiser budgets, can affect how much publishers make from advertising units on their websites. It is an interesting topic, considering that many people think that if their website starts making less money, it is their fault – wrong! Sometimes, it is out of control, and what I am about to tell you is an example of just this.

Straight away, it is a good idea to keep up to date with Ezoic’s Ad Revenue Index. This is an index which states how ad revenue is against time, with 100 representing the highest ever day of ad revenue in history. If you have a look at the trend recently, you will see that it is constantly increasing.

What is interesting to know is that there are mainly too factors which influence the Ad Revenue Index value:

• Lack of spending budget – It is common for ad campaigns to not spend all of their budget in the first quarter. When this happens, they pump more money into the campaign towards the end of the quarter to compensate.
• Start of a month or quarter – Ad campaigns are generally budgeted for every month or every quarter. At the start of each month or quarter, it is common for the ad revenue index value to decrease, and pick up again towards the next start of the month/quarter.

This year is a little special, in the sense that it is the start of the month and quarter on June 1st. As well as this, it is on a bank holiday weekend. Since ad campaigns are still manually controlled, this might mean a drop in the ad revenue index that is slightly bigger than the norm.

For this reason, we can expect to see a drop that is somewhere a little over 15%, since this was the size of the drop from last year.

Unfortunately, there is not much we can do to stop this: for bloggers, it is out of our control. There will be a drop in your CPM which will impact how much you make per 1,000 visitors.

There is a work around to compensate for this drop – publish unique high quality content! I know it sounds obvious. But, by compensating with more traffic, the drop in the ad revenue index will not be as noticeable. This is generally why it is a good idea to focus on publishing content around such times where there are drops, such as the start of each month and quarter.