How To Make Money Online: The Advertising Business Model

What are the different types of online advertisement business models?

Advertisements get displayed in a variety of ways.  In the article "8 Online revenue model options for Internet businesses", by Dave Chaffey, the author goes in depth into how many ways companies like Google, Commision Junction and other Internet Marketing companies generate revenue (in techniqal terms).  But as a blogger, one should be aware of the difference between an "Online Advertising Model" and an "Affiliate Online Advertising Model." The first relies on selling advertisements, the latter relies on third-parties to sell your advertisements.In other words one's revenues are focused internally and the other has an external approach to the revenue model.

In the article "Three Reasons Why Online Advertising is the Worst Model for Your Startup" for, Brian Clark CEO of CopyBlogger Media, sets up an argument for why The Advertising Model is "Worst" for start-ups.  The article generally focused on the models stated in Chaffeys' post, PPC, Subscription, CPC, etc.

In an article by Brett Miller titled "Attention Startups! Advertising Is NOT A Business Model.", a similar tone is take about the "Advertising Business Model". stating that monetization was difficult due to the large amounts of traffic needed, and website owners were left scrambling for other business models.

While I agree that the traditional methods of using Google Adwords, or Yahoo Advertising, or Facebook Paid Ads need tons of traffic to generate income from third party supplies, internal advertising works well if sold properly.  A domain cost $10-$15 on the high end to secure for a year.   With the innovations of micro job outsourcing sites, someone will pay you to write a feature, or a story, or an other blogger will buy an advertisement for $5-$40+ just to get a back link somewhere on the Internet other than his own hosting servers.  This can be promoted and expanded into a multi-million dollar business.  Thus, Advertising IS A Business Model and NOT the worst for a startup!

The major issues comes when one does not know which model you are chasing.  The dreams of just getting a check in the mail from Google for 6 figures because all of the traffic you gained...let me stop right there.  I personally know of companies that invested millions, are publicly traded and still have yet to turn a profit on their Google Adsense account.  Again, you need tons of traffic, and paying for it is going to cost you!  THAT IS THE ESSENCE OF THE AFFILIATE MODEL!! A world were you get a small fraction of the sale or price you would have received if you were paid directly through the advertiser.

Inc Magazine published, "This Company Broke the Online Ad Model for Fun and Profit", an article publicizing a company that sold sections of their lifestyle blogs, to major companies, per section (categories).  THIS IS THE ESSENCE OF DIRECT ONLINE ADVERTISING AS A BUSINESS MODEL.  Go directly to the money.

Notable Mention: On Venture Capitalist Fred Wilson's Blog, A VC, he breaks down some key points in his post "MBA Mondays: Revenue Models- Advertising", were he notes the systematic decline of PPC pay outs.

Please feel free to dive into comments and talk shop below.  And follow us on twitter. :)

Nicholas G. Coriano

According to Wiki:
Online advertising, also called Internet advertising, uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher’s content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.  
Online advertising is a big business and is growing rapidly. In 2011, Internet advertising revenues in the United States surpassed those of cable television and nearly exceeded those of broadcast television.  In 2012, Internet advertising revenues in the United States totaled $36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011. Online advertising is widely used across virtually all industry sectors. 
 Despite its popularity, many common online advertising practices are controversial and increasingly subject to regulation. Furthermore, online ad revenues may not adequately replace other publishers’ revenue streams. Declining ad revenue has led some publishers to hide their content behind paywalls.
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The PushYourRank Team
Author: Nicholas Coriano

About The Author: Nicholas Coriano is an Entrepreneur, Web Developer, Social Media Marketer, SEO Consultant and the founder of this blog and The  While developing websites for his own businesses and marketing his entrepreneurial ventures online, he began blogging useful tips and "how-to" articles on for reference purposes.  To retain Nicholas for help with your Website, Social Media, SEO or other online/technology needs, email

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