Obviously, I use Google Adsense to monetize several of my blogs. I am not a person who committed himself to make money out of blogging. I just evaluate, appreciate and use it. It is useful. It can pay the cost of my web hosting services.
However, as a geek and a former marketing / advertising worker, I do some research on the web advertising market. I do that research virtually irregularly. You cannot have enough idea just by looking at what I say on the issue. I am going to share my opinion anyway.
When it comes to online marketing, advertiser’s part is fairly easy in comparison to the publisher’s. The online advertiser have reach to many tools and these tools can measure the return on investment (ROI) fairly well. On the other hand, there are many uncertainties on the side of the publisher.
Whatever the publisher does in order to get an idea about what keywords (thus, what topics) to deal with, there is always a great percentage of chance involved.
The publisher can get the hang of keyword value mathematically but what about the order and the timing when and how the ads are going to be published. If you do every work on your part and don’t relay on a third party advertising publisher like Google Adsense or Yahoo Advertising Network, then results would be more predictable. In that case, your business will not be feasible because you will need great marketing budget and effort to promote your ad spaces. Therefore, this is not a solution to a more predictable outcome.
Suppose that you did research in order select a topic for your new website from which you expect advertising revenue. Then imagine that you finally decide on a supposed to be profitable topic. Then you work on your articles or posts and you publish them. You do everything to provide a good placement in search engines and you start displaying related ads on your website.
This is the publisher’s part.
Now, the fact is, any advertiser on your topic has a budget and his budget declines with every click. Since you are not the sole content provider on that topic, there is a great chance that his budget reaches to zero before any advertising are clicked on your website.
The problem is clear. There are no gambling at the side of the advertiser but there is a great effect of chance on the side of the publisher.
All of this information can be gathered in the future, maybe. Moreover, you can mathematically have the information as possibilities or probabilities but never as exact predictions of the real result.
So, this is why traffic and targeted traffic is so important. You have two competition. One of them is the advertisers budget that day or that hour. The other is the possibility of websites publishing something on the same topic. The only way you can have your way out of this situation is working on traffic. Therefore there are still a lot of catch-all websites. If publishing vertically on a certain topic would be the only wise move to solve these problems then we would not see that much website with topics on anything that comes to your mind at the same time at the same page.