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How Reader Demographics Affect Earnings with Adsense, Chitika, and Other Pay-Per-Click Programs

August 25th, 2008 · 4 Comments

reader demographics graph
For those who love analysis, there’s quite a science you can get involved with when choosing niches to blog about. There are all sorts of tools that can help you find a potentially profitable topic. For example, the Adwords Keyword Tool shows you how often certain terms are searched for each month, as well as the maximum amounts advertisers are bidding per click for those terms (in the Adsense/Adwords program).

The general wisdom suggests that you should stay away from niches full of keywords displaying low maximum bids–assuming making money is your primary concern. Keywords winning high-paying bids are considered more desirable by many publishers.

And that makes perfect sense, right?

If the highest bid for a keyword is 75 cents, chances are you’ll earn nickels or pennies for each ad click (remember, you only earn a percentage of what the advertiser is paying, and not all merchants are paying the maximum amount). Whereas if the maximum bids are $5 or $10, then odds are more in your favor for earning some dollar+ clicks.

But is the information you get from keyword tools all you need to consider when choosing a niche?

While the frequency of keyword searches and the amount of money advertisers are paying are extremely useful to consider, there’s at least one other factor you might want to think about:

Reader demographics.

Not All Readers Click Ads Equally

Do you ever click ads when you visit websites? I know I don’t.

If you want to make money from Adsense, Chitika, or other pay-per-click advertising programs, then you better hope people like me aren’t a big part of your target audience!

The simple fact is that web savvy folks are a lot less likely to click ads than those who are less well versed in the online world.

Why Web Savy Visitors Won’t Click

Most of us who have been navigating the web since the early days (or who have grown up with the technology) know how to use the Internet to thoroughly research products on our own. We’re less likely to be reading an article, click an ad, and buy a product from the site where we land. We’re going to hit a shopping comparison site and make sure we buy from a merchant with a good reputation who is also offering a low price. Chances are we’ll hit numerous sites and read several reviews before deciding on a product as well.

People who are very comfortable researching on the web will navigate the online world easily and find what they need in a few minutes. People who are less apt in this digital environment are more likely to get frustrated and buy from the first site that shows them the product they’re looking for.

Also, a lot of frequent web surfers are “banner blind,” meaning they don’t even notice those ad blocks. I hardly ever notice Adsense on a page unless it’s wrapped right into the content, and even then I’m pretty good at ignoring it. I’m even better at ignoring banner ads.

And then there are the folks who downright dislike or distrust ads of any sort, whether online or off. They recognize ads in any format and steer away with a sneer.

So Which Readers Click the Most?

Now that you’re thinking about, it you can probably already guess.

It stands to reason that if web savvy visitors don’t click ads very often, then less web savvy visitors are more likely to click. They’re more likely to go from your article or review to the merchant’s site and make a purchase instead of ignoring your ad, opening up four browser tabs, and comparing information on several sites before making a purchase.

Examples of these less web savvy visitors might include seniors and baby boomers. There are certainly a lot of exceptions, but many people in this demographic are uncomfortable navigating the online world, since they didn’t grow up using computers. (And on a tangent, this can be a great group to write for since they often have accumulated more wealth and have more disposable income than younger populations–your long-term success with pay-per-click programs relies on those clickers occasionally buying what’s on the other end.)

Of course, there are a lot younger folks who aren’t well versed in online research and comparison shopping either. Anyone who doesn’t work regularly with computers (or only uses the Internet for email and entertainment) might fall into the category of those who click more than others.

Examples of Reader Demographics Affecting Earnings (from personal experience)

Most of my websites today are in the home and garden niche, and while that attracts a variety of demographics, I get a lot more homeowners (many in that baby boomer category) and a lot fewer teens and young adults. While the topics I write about don’t always look like they’d be winners (according to those keyword tools that can tell us what advertisers are bidding), they end up having fairly high click-through-ratios (CTRs). More people clicking on low-paying ads can end up making you a lot more than high-paying ads that few people click on. (Of course, the ideal is when the ads pay a lot and lots of people click!)

For a while, I had a webmaster website, and CTRs were horrible. It’s no surprise since webmasters obviously fall into that web savvy profile, and–like me–they’re probably not likely to click on ads.

I’ve also got a site on office ergonomics (something I started when I was having a lot of trouble with repetitive stress injuries). The CTR isn’t as poor as the ratio for the webmaster site was, but it doesn’t come close to many of my home and garden sites with similar layouts. And that makes sense if you consider that most people who are concerned about ergonomic keyboards and special office chairs are folks who spend the whole day at the computer–again we’re talking about web savvy individuals.

So, I’ve learned first hand that reader demographics can play a huge role in how much you make from pay-per-click programs such as Adsense and Chitika.

How Should You Use This Information?

While this post is specifically written for those looking to make money with pay-per-click programs (if you haven’t read my post on Why Adsense is Perfect for Writers, give it a peruse), a lot of this can apply to other online monetization methods as well.

For the same reasons listed above, web savvy surfers are less likely to click on affiliate links and less likely to buy ebooks and other digital products. No matter what type of for-profit online writing you’re interested in perusing, I’d definitely recommend considering audience demographics, even if you eventually decide web savvy readers are a hurdle you’re willing to take on.

However, if you’re just picking your first niche with the hopes of making some money from Adsense or affiliate programs, you might find it more profitable in the long run to avoid topics that are solely aimed at web savvy audiences. Examples might include sites on computers, techy gadgets, or subjects that attract IT professionals or even writers (you don’t see Adsense on this site, nor will you!).

Topics that are specific to baby boomers or seniors could be a good way to go, or you can also aim for niches that span a variety of demographics. For example, subjects such as home and garden, health, dieting and fitness, pets, and many others will attract all ages of readers and all levels of web savviness.

Tags: Blogging for Bucks

4 responses so far ↓

  • 1 Tapan@inquisitiveaboutfinance // Aug 25, 2008 at 5:02 pm

    Hi,
    Newbie to your site, got referred via mymoneyblog. Nice perspective on who might be clicking through ads and who will not. Are you suggesting that over a period of years ad-revenue might decrease since current young generation will be baby boomers in next 20 years but they will be internet savvy?

    Also google ad-word does give one suggestions on what to write on but remember that a common keyword will have many sites associated with it and it gets tougher to ride up the rank chain to begin with unless you have a lot of links into you..

    Tapan
    http://inquisitiveaboutfinance.blogspot.com

  • 2 Sandy Berger // Aug 26, 2008 at 1:04 pm

    Just remember that although boomers and seniors may be less web-savvy, they are more conservative when clicking on links and/or purchasing items on the web. My Compu-KISS website (www.compukiss.com) is aimed at boomers and zoomers, so I have a lot of experience at marketing and targeting content to seniors.

  • 3 Merrilee Faber // Aug 26, 2008 at 6:32 pm

    Wow. That was something I never knew. Always love to learn new things. Thanks for an informative and interesting article! Not that I think I’d be able to make money from blogging, but it’s interesting to see how the process works.

  • 4 Lindsay // Aug 26, 2008 at 9:00 pm

    Tapan, the web and the ways ads are served will change immensely over the next twenty years, so it’s hard to say what will work then and what won’t. Technology is changing so quickly that there will probably always be a big knowledge (savviness) gap between those who are immersed in it and those who aren’t.

    Sandy, it would be interesting to see a study comparing likelihood to click (links at all) amongst different age groups. From what I’ve seen of my parents and their peers (in their 60s), they don’t seem to differentiate in-site menu links and Adsense ads that well and will click on whichever looks promising. I’ll definitely concede that they’re less likely to make purchases online, and if I were doing anything with affiliate programs, I’d probably stick to promoting Ebay and Amazon (where, if they shop online at all, they probably already have an account).

    And, by the by, you may want to experiment with moving the location of your Adsense/Amazon ads if you’re looking to improve the click-through-rates. The tower on the right side isn’t a big earner for any demographic–it’s just not a spot people look. I’ll do a post on placement strategies in the future, but in general CTRs are significantly higher when you wrap the text of the article right around one of the big rectangles. This can be done with a bit of CSS code.

    Good luck!

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