Monday, December 14, 2009

Adgitize: Can you RISK advertising again? -Part 1-

Risky Business album coverImage via Wikipedia

After the month of November has passed, we headed into December and many members of Adgitize have been in fear and some in panic when the new earnings bracket will be sustainable which was "promised" by Ken Brown in early October 2009.

There have been two different kind of members in October/November. One part of the members (advertisers) have bought a Last-Minute ad in the last days of October and finished the month of November with a (bigger) profit than the previous months.
Other members believed in the earnings prediction of Ken Brown from October and didn't buy in advance a second ad (or there was simply no money available). They had to buy later on the new priced ad for 24$. As there have been -until the last week (even last day) of November- over 40% of old 14$ ads, there hasn't been any possibility to make a profit with 24$ advertisements in November.

Is advertising in Adgitize getting RISKY?

In this environment it is common that a lot of members think buying a new ad for 24$ in Adgitize is now a risky investment. Like i mentioned in the beginning there have been a lot of Blog posts of previous Adgitize advertisers which have been afraid of buying an ad (or just buying it too early).
Even in the Adgitize forum and in the comment section of the Adgitize blog there have been several members questioning about the impact of the new earning bracket and when it will be worth again to advertise in Adgitize.
These events made more advertisers cautious and we saw a big decline in available ads. Like you can see in the graph below we started with 216 advertisers on 31st October and are now on 14th December at 146 advertisers, a loss of 70 advertisers.

Click the chart to enlarge (opens in NEW window)!

amount of Adgitize advertiser November - December 2009Even when the advertisers are declining there is still more money in the system than in the end of October when the ad price was just 14$ (216 x 14 = 3.024 $, 146 x 24$ = 3.504 $) which is one of the reasons that nearly everyone is earning more than in October and November (if you're still advertiser or have been every time publisher).

In Part 2 i show you if it's really risky to advertise and show some new options to earn with Adgitize!
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  1. I personally do not understand the problem with the risk. If you spend 24 dollars, which is not a lot of money in terms or advertising, why worry whether you make that money back or not? To me that is not a whole lot of money to spend on advertising in a month. I hear the traffic you receive from said advertising is very good. To me not a big risk at all, since they pay others to actually click, and visit the ads. A win win if you ask me.

  2. It all depends on your purpose of advertising in the Adgitize.

    If you look at it as an investment where you can generate a return, then it could be risky, in the sense that you might not be able to earn more than $24 which is the cost of a 31-day ad that you are paying for.

    I think this issue is relevant only if you are very active in the Adgitize, e.g. posting daily, doing Adgitize clicks everyday, etc. to get maximum points and wants to get your money back.

    However, if you view the $24 as cost for blog promotion and generating traffic, then it is worth it.

    In my case I am not active in Adgitize, I don't even look at my earnings, but I am more of an advertiser per se. So, even if I can't get any return of my $24 I will continue to advertise because my purpose is getting traffic and promoting my blog.

  3. I'm always entertained and informed everytime you post about Entrecard and now on the Adgitize, which is my fave ad network. I admire you for your in-depth analysis and commentary of the issues at hand.

    I can't wait to read your Part 2.

  4. Good Post CM! Like you, I look at the number of Adgitize advertisers every morning (EST). Then I look at night. It's a bit funny to continually see 1-2 more advertisers at the end of the day then at morning.

    In earlier posts, you indicated the number of advertisers in your Time Zone. Most often, the number of advertisers increases from when you look to when I look in the AM.

    As I have tried to click on 100 ads for the past month, I noticed a large increase of new blogs added. But, by new, I mean the the Blogs are only a couple of months old and many of which lack any content.

    In addition, I see more Adgitize ads.

    So I question: Is the number of Advertisers being manipulated just to make it look like the actual losses are not so great? (Cynical uncertainty)

    Remember in my earlier AskTheBlogster post, I predicted that in this economy, the number of advertisers would decline substantially. And every day, we keep losing $24 advertisers.

    I continue to love Adgitize, but I loved it a lot more at $14/month --- and I think others would agree as well. It's not about making money for most, it's about being able to cover our costs - so that we don't waste our precious money on unneeded pleasures.


    PS: It's Christmas time. As an present, What if Ken dropped prices back to $14 for a couple of months - I bet you'd see advertisers jump to 250 or more!

  5. @ Joh, I hope Ken read your P.S. here. Very sensible suggestion. Maybe you can post it in the Adgitize Forum.

  6. @John:

    I can give you another number for the earnings 310 points - 67 cents on 14th December,
    390 - 410 points 79 - 93 cents,
    450 - 470 points 91 - 105 cents,
    260 points less than 30 cents.

  7. @John & Eli:

    Reducing the price to 14$ from Christmas on would cause a very big damage to all advertiser who bought the ad for 24$ during this week/month!!

    You will read much more about this in Part 2 or 3 :) Today and in the following days!

  8. You're correct, Martin. Reducing the price to $14 from Christmas onwards would be unfair to existing advertisers who purchased their ads at $24.00.

    But I just posted in the Adgitize Forum, a suggestion to Ken for a one-day Christmas special promo, that anyone who purchase a 1 month ad will pay $14.00 during December 25 only.

    I think if immplemented it will entice some or more members to purchase their new ads or for those who have existing ads, to buy additional ads, to take advantage of the special promo.

  9. Very nice discussion...

    @Melisa & Elena:

    I do agree with you. I think that spending $24 for 2300 visitor a month is not really big deal since we get a lot of benefit from this kind of blog promotion such as raising the alexa rank, introducing the new opportunities (affiliate), etc.

    @John $ Eli:

    I can understand about your concern and idea to reduce the ad price to $14. In my opinion, Ken have think and analyses his decision in increasing the price to $24. I think that Ken want to put the Quality in front of quantity. As per martin calculation, even the number of advertiser was decrease a lot but the sharing revenue was increased.

  10. Hi Martin, u on holiday today? :)

    I can't wait to see my earnings for this month as this is my first time advertising at 24 bucks, so far so good and it looks like I am on track to make back that 24 bucks, but we'll have to wait till the end of the month to really know for sure. Good luck to u this month too! :)


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