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Google Adsense or Advertising Model?

According to Bizak, in house advertising campaigns are more profitable for entrepreneurs than Google Adsense.  Websites who implement Adsense have an EPV of $0.07 compared to sites who manage their own advertising who earn $0.17 per visitor.  I actually think the Adsense EPV ($0.07) is a bit high and it will come down with more data.  However, compare Adsense to subscriptions ($0.35 EPV), consulting fees ($2.29 EPV) and product sales ($10.64 EPV) and Google Adsense is a poor decision for startups and websites.  

One benefit of Google Adsense is that it’s very easy to implement and the costs associated with that implementation are very low.  Sites with Adsense have the lowest CPV (Cost per Visitors) at just $0.03 – In House Advertising is more difficult to implement and therefore have a CPV of $0.12.  To no surprise product sales requires some of the highest startup costs with a $4.34 CPV – subscriptions are at $0.39 and consulting registers a $1.62 CPV.


  1. November 11, 2008 at 1:53 pm | #1

    You said “I actually think the Adsense EPV ($0.07) is a bit high and it will come down with more data”.

    Where would you peg the actual number at if you were to guess?

  2. November 12, 2008 at 1:19 am | #2

    I think initially to $0.05 EPV but we’ll see how the economy trickles down to Adsense. It could be lower but there are two sides of thought as to whether online (more accountable) advertising will increase or decrease during the current conditions.

    TOK

  3. Ian Simpson
    January 28, 2009 at 5:02 pm | #3

    Just wondering how you arrived at these various numbers, such as subscriptions at $.35/visitor? I’m not questioning that, but I’d love to know how you figured it out. Can you provide any insights or web resources?

    Thanks.

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