Using Google’s Adsense on your site and worried about a sudden drop in earnings after the New Year?
Don’t worry – the decrease in profits is probably just temporary – here’s why:
Towards the end of each year, many advertisers are focused on the pre-Christmas market in the US and Europe. They spend a lot of money on big advertising campaigns to get people’s attention at that crucial time when people are deciding on what gifts to give (or receive!). In addition to the tradition of gift-giving around Dec. 25th, there are also many people in different countries who like to give gifts to their loved ones at New Years.
If you have an English language website or blog that isn’t specifically geared towards a seasonal subject, then you’re likely to see a dip in your Adsense earnings-per-click or RPM (revenue per thousand views) after 1st of Jan, as advertisers and marketers begin the new year.
Online Advertising Revenue throughout the year – some numbers
Detailed per-month figures for online Ad spending are not that easy to come by, however the quarterly report by the Interactive Advertising Bureau is a good place to start.
In the data from 2007 onwards, there is a clear dip in the first quarter (Jan-Feb-Mar) of each year compared to the last quarter of each previous year, creating a staircase-like effect. By the second quarter (Apr-May-Jun), ad revenue has mostly fully recovered compared to the start of the year.
These are general figures though, including diverse areas, so if you wanted to look at advertising spending in the retail sector (e.g. Amazon, Best Buy etc.), the seasonal differences would most likely be significantly greater.
Watch the click-through rates
Of course, if you see big changes in click-through rates, or page views, then there may be some other explanation for a drop in revenue, since that would suggeset either fewer people visiting your site or less interest in the ads. However, once these values are relatively stable, then you should see a gradual upturn as the first quarter progresses.
Do you see a big drop in Adsense revenue in January?
Or do you get some of your best income during this time?
Let us know using the comments box below.