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What Factors Affect Online Advertising Revenue?

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  • Written By: K.C. Bruning
  • Edited By: John Allen
  • Last Modified Date: 11 September 2016
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There are several factors that can affect online advertising revenue. Some of the most common include the overall economic climate, current market conditions for the service or product being offered, and the effectiveness of using various mediums for a particular group of customers. Changes in the general perception of the company or the product being offered can also affect online advertising revenue.

Typically the state of the economy will mirror somewhat the amount of online advertising revenue earned. This does not always mean that ad revenue will plummet during hard times, occasionally it will even grow. Still, any improvements are likely to be slight, and for the most part, if the economy is poor, then revenues can be expected to drop.

The success of online advertising revenue also depends upon how robust the market is for the product being offered. While a strong ad campaign may remedy flagging interest in an offering, if there is not a solid customer base for the product, revenues will probably decline. This factor can become an issue over time or develop very quickly due to an unexpected event or industry innovation.

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Online advertising revenue amounts can also rise and fall depending on the perception the public has of a particular company or product. A company may draw interest and support with a new offering that distinguishes it from competitors. On the other hand, anything from scandal to simply a loss in relevance can negatively affect perception of the company, which can cause a drop in ad revenue.

The suitability of online advertising for the product and target audience can also affect ad revenues. Other mediums, such as television, print, and radio may have more or less impact on desired customers. A different medium may also have characteristics that better fit the way the offering needs to be promoted.

Online advertising revenue may also be affected by the design of the ad and where it is placed on the page. Some products may be easier to sell with text-heavy ads, while others may need sound or moving images to make a strong impact. If the targeted audience tends to be annoyed by ads that attempt to grab attention by popping up in another window or appearing over the page, revenue could also be negatively affected. Revenue can also be increased if the format of an ad is tuned into something the desired customer finds interesting or helpful.

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