How Supply and Demand Affect Adsense Earnings

Supply vs Demand

Ever wonder why some websites get a ton of traffic and others do not?

Have you ever noticed that some Adsense ads are worth a lot of money per click and others barely pay a few cents per click?

The laws of supply and demand affect all business and Google Adsense is not exempt from these laws, see it is all about what consumers want and what is provided to them, if you can meet the demand  you can use this to your advantage and earn more money, supply and demand affect your Adsense revenue and today I will show you how to take advantage of these laws.

You already know what Google Adsense is, now let’s make more money from it.

Google Adsense is probably the best ad revenue platform for publishers which allows you to monetize your web content, the concept is simple, you place advertisements on your website that are served by Google and you will get a portion of the revenue generated from such advertisements, the advertiser gets new customers and they pay the ad company and the revenue is shared, everybody makes money one way or the other, it’s a simple concept however in reality it is a high tech and complicated system.

If you are currently banned or not approved for Adsense, you can sign up for Infolinks which is another great alternative for placing ads on your website.

So what is the law of supply and demand and how we can use it to our advantage.

Ok, so now that we know how Google Adsense works, let’s talk about a very popular business law, the power of supply and demand. In simple terms, let’s say that you sell bananas and you are the only person in town who has the fruit, if there are hundreds of people wanting the product you can basically control the price and raise the price until people stop buying them from you. Now, if there are multiple people selling the same product, the the value of your product goes down.

Now, let’s change things a bit and say that there are no buyers of bananas and there are many sellers, then the prices will go down until the buyers are motivated to buy since prices are so low, this is the law of supply and demand.

How do we take advantage of supply and demand when using Google Adsense

Google Adsense
Google Adsense

Now that we know how these laws work, its time to use it to our advantage, see when it comes to the Internet content is king, let’s say that you built a website about Marketing, if you write content about IM or Internet Marketing you will notice that there are hundreds of thousands of articles about the same topic, based on the law of supply and demand, there are too many suppliers meeting the demand for people. No matter how hard you work and how many back links you build, it will be very hard to rank higher since there are too many competitors.

Now if you take the same approach and build a marketing website that servers content for your city only, like New York Marketing you will notice that the competition will be lower, yes there might be less demand but you will still have enough demand where it will be worth creating the content to server people looking for such content, it will not only be easier to rank but it will take less time and you will start making revenue faster.

Not only will this allow you to earn money and create traffic faster but it will also allow you to be an expert in your niche and you will be able to server your audience much better, also the Google Ads will be much targeted and you will even make more money if you served content that was more generic.

As you can see, Google Adsense can be a very powerful tool an it can be extremely competitive, the law of supply and demand also applies to just about any other business. For example if you have a barber shop in a city that has too many barbers serving the same people it will be very hard to compete, now if you find out that there are no tattoo artist any where and you can serve that demand you will have an easier time building your business.

This is why before starting an online business you have to determine how much supply and demand there are for your products or services, once you figure that out you will have an easier time being successful. This applies for Google Adsense, before creating your content do your research and find out just how much competition you have, if there is too much content that is relevant to what your topic is you better be creative and create content that is more unique and serve the niche audience instead of trying to target content that has already been published hundreds of thousands of times.

A simple way to determine how much competition you have is to do a simple Google search and see how many websites come up from the search terms that you made, if you navigate through the first 5 pages of results make a list and start to monitor what your competitors do, if they have too many back links and they have been online for a long time likely you need to find another topic to serve and monetize. It is just that simple.

Final thoughts

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