« Meet the Google Engineers at SES - including AdSense engineers | Main | AdSense will fluctuate number of ads in an ad unit if it will make publishers more money »

August 04, 2005

Interview with the AdSense million dollar man, Jason Calacanis

When Jason Calacanis wrote in his blog that he was on schedule to make a million dollars with Google AdSense over the next twelve months, he created a phenomenal buzz about the financial possibilities of running AdSense on blogs, as he does on his Weblogs Inc. network.

If back in September when we started playing with Google Adsense someone told me it would turn into a $1M a year business I would have laughed. A million bucks without a sales person? Give me a break!

However, yesterday we broke our $2,100 record with a $2,335 day. That’s an impressive number I know, because if we can take that number to $2,739.72 we’re at—wait for it—$1M a year.

I asked Jason if he'd care to answer some questions on how he does it, he graciously did just that, sharing his thoughts, ideas and advice on AdSense.

Why did you decide to try out AdSense back in September?

We were launching blogs quicker then we could sell advertising, so we figured we could either give the ad space away (like magazines do) or we could try to make a little money from it with 3rd party ad networks like AdSense, Tribal Fusion, Fast Click, and Burst.

Did you initially place AdSense on all pages, or did you gradually add it over time? Do all pages on Weblogs Inc now run AdSense?

We started with a couple of blogs and then quickly put it all over the network.

What single change do you think made the biggest leap in your AdSense income?

1. Taking off the borders around the advertisement
2. Making the links the same color as the links on the blog

Why did you select the ad unit location that you did? (Curious because it is not generally a high CTR position).

We were sold out of leaderboards on our big blogs, so we figured we could slip the thin horizontal banner without it feeling like too much advertising. People tend to like--or not care about--Google Adsense ads. Which is great compared to graphical banners which people sometimes hate.

How successful have you found rotating the ad unit colors to combat banner blindness?

Never tried that... thanks for the tip!

You use channels on your sites, do you also check your channel reports on a regular basis? Have they helped you with making decisions regarding AdSense?

We do channels for each blog, and now we are doing channels for each position on each blog. This is a lot of work because we have seven positions across 80 blogs. I wish Google Adsense would automatically do reports by format (anyone listening over there?!).

How do you balance the user experience versus advertising revenue? Do you deliberately chose the less intrusive AdSense ad formats on Weblogs Inc?

We don't like to abuse our users. We like to give a lot of content on one page (15 stories), and keep the heavy advertising up top. So, after the first page down your past most of the advertising.

You mention that your AdSense revenue would be higher if it wasn't for advertising commitments already made on blogs such as Engadget. Is AdSense successful enough that you plan to place AdSense in those more prominent ad spaces when they become available, or is the current secondary placement on those blogs working well enough?

AdSense doesn't reach the level of display advertising ($3-12 CPM) and it never will--unless Google started selling display advertising! Wait a second... that's a really good idea!

Do you ever worry about someone attempting to target you for click fraud?

Not at all. Google has the issue totally under control. Besides, the advertisers correct click fraud by lowering the price of each click by what they think the cost of fraud is. So, if people were paying $1 per click, and they thought 5% were fake they would move their bid to .95. This is why the whole issue of click fraud is overblown: the advertisers look at the results and bid accordingly! People who bring up this issue--like the press--don't understand that Google Adword buyers are very, very smart and take into account a certain level of fraud.

Every system has fraud, look at credit cards! Should we stop using credit cards just because there is massive fraud? No, because on a percentage basis it is manageable. There is an acceptable fraud level in any economic system and we balance the freedom of having a credit card with the fact that someone could scam the system.

Do you plan to test Yahoo Publisher Network when it becomes available? What will be your deciding factor when choosing between the two - strictly revenue or something beyond that? What about some of the other contextual ad networks on the market?

This is all about performance. If Yahoo Publisher Network makes us more money we will give them the inventory. However, we don't have all the time in the world to swap out these networks all day long, so we can't try every ad network out there.

In fact, I've been telling the smaller ad networks that come to us now that they have to give us a "floor CPM." They would pay that floor rate in advance in order for us to even test their network. Out of the 10 ad networks I've told this to 8 think I'm crazy and two are considering doing it. So, I'm making some progress. :-)

In another year large publishers with quality products are going to be able to demand a minimum "floor CPM." Some folks might be getting this already. I would love to see Google or Yahoo say "we're gonna pay you at least a .25 CPM for your traffic, or 65% of the value of the clicks--whichever is greater." They could give you a report each month with both results.

If someone is going to beat Google at this game that is how they will do it, with a guaranteed minimum CPM. If I were trying to beat Google I would do three things: 1. disclose the % of the split, 2. give a floor CPM, and 3. direct sell CPM based advertising on top websites. In other words, add the direct selling that BlogAds or Tribal Fusion does to what Google already does. Then an advertisers could say "I'll pay a $5 CPM for the top leaderboard on your site, and .50 for ever other click you can get on your site."

That is the future: blended buys through one ad network.

I'm sure Google and Yahoo will offer this in the next year.

What is the best piece of advice you have for a publisher brand new to AdSense? What would you have done differently when you started with AdSense, knowing what you do now.

I would have run four ads per page, taken off the borders, and made the links the same color as the links on the blog. I would have also made channels for each position and blog so I could track things better.

How many times do you login to AdSense a day? Are you a stats junkie who checks every ten minutes? Or do you check only once or twice a day?

I have about 50 saved Adsense reports in a folder on my Opera browser. Every day I click on it and autoload the 50 pages. I then scan and look for trends. Sometimes I find a CTR spike or an eCPM of note. However, it's pretty steady at this point.

The best thing you can do to make more money is produce world-class content. That's what I spend my time on: finding people who can make world-class content... and pay them!

How successful have the AdSense for Feeds ads in your RSS been? Have you had a problem with readers not wanting ads in their feeds from you?

Like three folks were upset about RSS ads. Now, we have millions of people coming to our sites every month so we're not going to stop the revenue for three freaks who want free content without advertising (don't we all want that?!?!).

If you did a survey and asked people watching Desperate Housewives if they would consider paying to have it without commercials people would say yes. You could ask the same group if they would like to save money by watching the Sopranos for free with ads in it and they would say they would consider it!

Ads in RSS are no big deal. They are just like banners or text links on a web page. If you produce great content people will deal with the ads, and if you produce really great content a certain percentage of those folks will pay for the content (if you want to go that route). So, it's important that when you're running a business you ignore the freaks and listen to the real fans. Real fans of the site understand you need to make money in order to produce free content, and those real fans even visit the advertisers and buy their products knowing that it will support the product they love.

Jason will be at Search Engine Strategies next week in San Jose, and will be joining myself on the Earning from Search & Contextual ads session. You can read a bit more about the session here.

Thank you Jason for the interview!

Posted by Jenstar at August 4, 2005 02:40 PM

Trackback Pings

TrackBack URL for this entry:
http://www.jensense.com/mt-tb.cgi/104

Listed below are links to weblogs that reference Interview with the AdSense million dollar man, Jason Calacanis:

» Ads in RSS? from AdMoolah News and Views
I have seen some differing opinions about ads in RSS feeds lately. In an interview on JenSense, Jason Calacanis said this: How successful have the AdSense for Feeds ads in your RSS been? Have you had a problem with readers not wanting ads in thei... [Read More]

Tracked on August 4, 2005 04:30 PM

» Calacanis: people who don't like RSS advertising are freaks from The Blog Herald: more blog news more often
Weblogs Inc's Jason Calacanis has stated that people who don't like RSS advertising in full feeds are freaks in an interesting interview with Jen from Jensense. The interview covers a wide range of contextual advertising questions, of which readers... [Read More]

Tracked on August 4, 2005 07:51 PM

» AdSense Advice from the AdSense million dollar man, Jason Calacanis from Blog's Blog

I would like to thank JenSense for this great interview and Jason Calacanis for the great informations he was giving. The Weblogs Incs experience with Adsense is considered one

[Read More]

Tracked on August 5, 2005 05:01 AM

» Jason Calacanis on AdSense and Blog Advertising from Trader Mike
JenSense has posted an excellent interview with Jason Calacanis of Weblogs Inc. Jason's network of blogs is on pace to make a million dollars from AdSense in the next twelve months. The interview is a must-read for any blogger looking... [Read More]

Tracked on August 5, 2005 09:17 AM

» A Million Dollars in AdSense? from Taking My Time Back
Yes, it's true, and I see more light. I just love reading success stories and I especially like it when people talk about how they did it. I'm new to this whole thing and couldn't imagine anyone making $1 million annual, but someone did, and I sense ot... [Read More]

Tracked on August 5, 2005 12:56 PM

» Interview with the AdSense million dollar man, Jason Calacanis from ProBlogger
Jensense posted a great interview with Jason Calacanis, the blogger behind Weblogs Inc. over the weekend. It is definately worth a read. The full interview can be found here. ... [Read More]

Tracked on August 5, 2005 03:42 PM

» Zarobi mln USD na AdSense w cigu roku from AdSense Obserwator
Nietrudno policzy, e wystarczy miec obroty rzdu 2740 USD dziennie I jest firma, ktra zblia si do takiej sumy- to Weblogs, Inc. Kilka dni temu Jenstar przeprowadzia interesujcy wywiad z Jasonem Calacanisem, wacicielem tej firmy. Niecay mie... [Read More]

Tracked on August 7, 2005 03:46 AM

» Intervista: 1 milione di dollari all’anno con AdSense from www.nasso.org
L’uomo in questione è Jason Calcanis e questi sono i consigli migliori che si possono trarre dalla sua intervista What single change do you think made the biggest leap in your AdSense income? 1. Taking off the borders around the advertisemen... [Read More]

Tracked on August 7, 2005 08:09 AM

» Simple Adsense Tips from Jason Calacanis from JalanSutera.com
Jason Calacanis of Weblogs Inc. was interviewed by Jensense.com. Calacanis was on schedule to make a million dollars with Google AdSense over the next twelve months, he created a phenomenal buzz about the financial possibilities of running AdSense on ... [Read More]

Tracked on August 9, 2005 06:59 PM

» Money, money, money.... and service from paradox1x
JenSense: Interview with the AdSense million dollar man, Jason Calacanis Sean Mountcastle: Business for Geeks Garrett Dimon: About Going Solo... [Read More]

Tracked on August 10, 2005 04:08 AM

» $1 Million Per Year From Google AdSense from Willie Crawford's Marketing Insights
Here's a nice interview with a guy ontrack to make $1 million this year from Google AdSense. Actually, his company... [Read More]

Tracked on August 14, 2005 06:48 AM

» Adsense Millior Dollar Man Interview from BloggerTips.com
When Jason Calacanis wrote in his blog that he was on schedule to make a million dollars with Google AdSense over the next twelve months, he created a phenomenal buzz about the financial possibilities of running AdSense on blogs, as he does on his Web... [Read More]

Tracked on September 18, 2005 08:04 AM

» Entrevista com Jason Calacanis, que fez um milho de dolares no AdSense from Bruno Alves
Achei hoje por acaso, procurando por assuntos relacionados ao AdSense. Entrevista com o Homem que ganhou um milho de dolares com o AdSense. Quem tem inteno de ganhar dinheiro com o AdSense tem que ler esta entrevista. Pode ser que voc no g... [Read More]

Tracked on April 26, 2006 04:52 PM

Comments

I'm a fan of Weblogs Inc. I click the ads because they often are a dead on match to the content. That's why it works.

Posted by: hashim at August 4, 2005 06:11 PM

Very very motivating :-)

Posted by: Dhiram at August 5, 2005 01:20 AM

The original post seems to be missing in action?

Posted by: plumsauce at August 5, 2005 02:54 AM

Jason says he got 103 bloggers on the payroll and also nine staffers .It would be interesting to know his net income...

BTB , 1 million is not that big ,hell i make nearly that much from my spare bedroom without any full time employees! .Ok,Back to my secret cave :)

Posted by: G at August 5, 2005 01:49 PM

Great interview! Thanks.

One tip I have found that works well with my website http://www.usedmac.ca is that by placing less adsense ads on the page I get a higher CTR. I only have one banner ad on the top of the page.

Posted by: Scott at August 5, 2005 03:30 PM

1 millin from Blogging? that's surreal...

I make a decent profit from Adsense, in fact I make hell a lot more than I do with my job so I'm thinking in quiting... But I'm a bit worried of how long this money machine would last...

If there is something I've learned from the Internet is that everything that goes up, at some point will go down or change his way to a different model.

Posted by: Mandrake at August 5, 2005 03:46 PM

hmmm, so all I need is 1 dedicated super server, Free GPL Blog software, 10-100 bloggers, some niche areas to talk about and finally a sprinkle of Adsense...

I wonder how long it will take to get this off the ground?

Anyone interested?

Posted by: Godz Zilar at August 5, 2005 05:37 PM

sorry~! I don't what to write.I just can speak a litto English!

Posted by: qian zhenchao at August 6, 2005 12:57 AM

Thanks for the digital aperature.....

It was a natural for me to learn to take over seo as an aspect of http://taking-over-the-internet.com/

For those who would rather die, check with Pavlov before you upload your personality into the collective social interface.

And.....PLEASE remember to watch your intentions become their consequences.

Physical Immortality alters archaeology.

Robert Ray Hedges from Sedona Az

Posted by: Robert Hedges at August 7, 2005 09:13 AM

I made a few hundred thousand on clicks on my site where I have nothing but big dick pictures.

Imagine that...

Posted by: Cork at August 18, 2005 10:42 AM

OK OK, most of us do not have 80 some odd blogs and 103 bloggers on the payroll, so what's a poor blogger to do? Actually, there is a solution and it's one I personally figured out to meet my own multi-blogging needs. ---

It's called Blog-zilla.com and it allows any content provider or entrepreneurial blogger to maintain 10, 50, 80 or 100 blogs with high quality, targeted and personalized original content (no content theft, no scraping, no 'RSS only' spam blogging here). If you opt to have Google Adsense ads on your blogs and you can target the right niche markets with good content and keep your multi-blogging up, perhaps you too can have a million dollar goal. ---

You can see my 100 blogs at:
(My topic is "Internet Marketing Tips" and I address many company
representatives and entrepreneurs seeking help with online marketing)
http://www.blog-zilla.com/100 ---

I'm not sure if $1 million is a reality, but it's a sure bet you can't get $1 million from ONE blog alone.
.

Posted by: Dan Hollings at August 18, 2005 06:46 PM

i don't know why you are so oriented to making a million, i am almost going for hat with 4 helpers and 20 bloggers, wih net'ng 50 k per monh now .
400000 pag viewers per month from traffic recycling to my 4000 plus pages.

I use adwords, referral ideas, and off line ads in News papers in Dayton, Dorado columbus (OH ).
I use rich contnt blog pages for best results.

diwakar

Posted by: B S DIWAKAR at September 7, 2005 07:48 AM

central is feature of collective stake [url=http://www.moviecitynews.com/]lazy soldier is always faithful corner[/url] green, good, memorizing nothing comparative to greedy: http://movies.yahoo.com/mv/moviemom/ , soldier will gnome unconditionally

Posted by: Kevin Drake at April 17, 2006 11:47 PM

Post a comment




Remember Me?