Reasons behind the Nose-diving Blog Income

If you have been going nuts over the continuing downtrend of your blog income, here are the reasons. Pubmatic, the ad optimization service, has published a report on the Ad rates trend for the past one year and the story doesn’t look all that great (See charts below) for those who depend on their blog money.

blog income down trend 2008The average ad rates have fallen by almost 50% in Q4, 2008 when compared to the same period last year. Websites of all sizes have been on the receiving end while the smaller sites (and blogs) suffered the biggest loss in the eCPM rates over the past one year. Business & Finance sector related ads, quite understandably, have been the worst underperformers.

More on the decreasing ad rates

The report suggests that there has been some positive trend in the last quarter or so but again that was mainly due to the festive season spending. If you discount that, the trend is still downwords and the worst may not be over for all of us.

ecpm rates for website sizes

The above picture explains why many of us – small time bloggers – have probably suffered more. We got to read some really interesting blog income reports for the last two months or so!

overall ecpm rates trend

The ad rates trend is directly related to what is happening around us with respect to the global economy. For more details on this report please visit this Marketing Charts link.

Related Posts

Global recession and current state of the MMO blogosphere
Blogging tips for the current market conditions

Tail Piece: Wonder how those blogs with optimized keyword content, for debt consolidation, insurance, credit cards etc, are doing! :)

Comments

  1. Wow. This isn’t good at all.

    Although, I think that you can definitely get around this by choosing good affiliate advertising programs with a set commission structure or by allowing sponsors to purchase ads at your defined rates. Of course, I don’t really monetize my blog, so I can’t really say much about my blog revenue.

    Shirley’s last blog post… Why Are Bloggers Writing Shorter And Shorter Posts?

  2. Thats really bad for all of us. The big blog earners wont be affected so much but for the small time bloggers it is really very bad. On the other side, I am seeing some improvement in my adsense earning since I added my ads just above my post and merging the background colour to that of my blog. Thanks for the tip.

    Kurt Avish’s last blog post… Do you know how to compliment your girl? – IC LOVE

  3. Arun | BE Folks :

    poor me!!!

  4. oops the picture is becoming worse day by day… so we have to find some more ways to earn money online. i am sure you would like to post something related to other ways also. gr8 sharing. thanx.

    Sky Xavier’s last blog post… Increase blog traffic using StumbleUpon

  5. That sucks really.People are getting very less per click.

    Global recession effecting the blogs too :)

    TechZoomIn’s last blog post… Why You’re Earning less with PPC Advertising?

  6. Dennis Edell :

    As someone who has decided to start monetizing this year…this is not a happy day maker.

  7. This really doesn’t seems like a good news to us. Looks like we should turn to CPL now to monetize our sites. Thanks for the information buddy.

    Wei Liang

  8. @Shirley, yep as I mentioned in one of the other posts, monetizing via ads alone may not be a sustainable model. One has to provide one’s own unique services on top of ads to make money consistently. That’s when the rates and tariffs can be controlled better.

    @Kurt, you have you have black background that projects the orange and white text so prominently that users will be forced to click 😆 Good luck and good to know that it’s not coming down at least.

    @Sky Xavier, yes. Alternate methods need to be worked out. Selling the PR (via text links) in a controlled way may not be a bad idea

    @Lax, Dennis, Arun, yep not a good news at all…

    @Felix, even CPL model can get hit when the online spending is less

  9. Nihar :

    @Ajith, All this is because of Recession, I guess 2009 too will be bad year :(

    Nihar’s last blog post… Browser stops working after starting uTorrent client

  10. Mitch :

    Very nicely researched, and frightening at the same time. It explains why so many of the affiliates I try to market from CJ have been changing their terms lately.

  11. @Nihar, yes if you depend totally on ads alone… Try to diversify

    @Mitch, thanks… Yep, I keep getting these ToS change mails from many advertisers as well.

  12. Ah, that’s how the larger economy is affecting the blogosphere.

    It simply means that we have to continue being inventive and vigilant. Ad revenue is just one of many that are available to us.

    ari

    Ari Koinuma’s last blog post… 8 Easy Ways to Cope with Overwhelming Challenges

  13. @Ari, long time… Yes, this is one of the reasons. But if you take the private ad sales route, it may not have this bad impact I guess.

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