The Effect of the Global Financial Crisis to Adsense and Affiliate Marketing and to other forms Internet Advertising and Internet Marketing
Posted on November 23rd, 2008
The looming financial crisis has so much affect in all fields of industry, almost everybody is feeling it. Decline in sales which results to decrease in income, and correspondingly some companies are already contemplating of downsizing, read: terminating employees.
Even household helps are not spared from this crisis. Their employers, being investors of stocks in multinational companies where the problem somewhat originated, are losing on their investments and they might be forced to send the household helps home.
Talks of recession, financial crunch, losses, are other financial woes are in every corner. That is how serious the problem is. It has taken the attention and cautioned everybody… even those who were not even conscious of financial trends before.
But what surprises me lately are the talks that this global financial crunch has even affected the income generated by Google Adsense. I would admit that it is really hard for to me comprehend, that the Adsense could be affected by this global concern. But many offline businesses is always behind and has been the core of internet marketing and advertising where Pay per click and affiliate marketing is part of.
If you would happen to chance upon online forums, especially one whose community is composed of bloggers and webmasters, you will see threads discussing about the different ways to capitalize on Google Adsense. Sharing also some tips and concerns about this online earning opportunity. And In one of these threads, you will find a topic that discusses about declining Adsense income.
I guess this might be too technical for someone who is not so web-savvy just like me. But in a simplistic point view, I guess it can also be explained.
Google generates income from consumers clicking on the ads on their sites and on their partner sites. The more consumers spend, the more they click on ads and the more money Google makes from advertisers. But because of the weak economy, the spending habit is also affected, which could also be interpreted as they are clicking on advertisements less.
Here’s another explanation, although this is quite technical. Adsense is a PPC program or pay per click program wherein an affiliate earns when the visitor clicks on the advertiser’s link. This is interpreted that someone is interested on the advertiser’s product or service. But since the economic squeeze has an impact on the advertisers as much as it does the consumers, clicking on their ads might not be sufficient as it does not really amount into anything unless converted to sales.
Because of this, they may opt for Pay Per Action rather Pay Per Click wherein further action will be required before the affiliates could be credited with the corresponding reward. This means that a mere click may not earn something for the affiliate unless a required action was completed on the advertiser’s websites, which could be the reason why there is a decline on some Adsense income.
These are just theories, but they could not be farther from the truth. Adsense income, as well as other affiliate marketing can be affected by the global financial crisis. Everything that happens in the real world can have an effect on the virtual world, especially on businesses.
What then can be done? Honestly, at this point I don’t think anybody can do anything about it, after all it was suppose to be just a passive income. Which means that there is another reason for your website to exist on the web. If you are a blogger, continue blogging, develop your niche, and post relevant articles. Those advertisements will continue coming, and maybe the ones that are relevant to your posts.
If you sell products or services, continue selling. Consider having a sale or offer freebies. Give customers a reason to come back to your site, entice them with catchy offers. With this, Adsense or not, you will continue to exists until this financial crisis is over.
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Your post is very timely.
As the effects of the global financial crisis are being felt more and more by ordinary consumers, there has been great need for a site that gives people information about contests, promos and freebies. Filipinos can now put a smile on their face amidst all the economic gloom with the timely launch of Pinoy Contests, a new blog which can be viewed at pinoycontests.blogspot.com.
The site features online competitions that residents in the Philippines can enter for them to win prizes, freebies and giveaways. With the ongoing slowdown, people are motivated to hunt for promos and prizes, and Pinoy Contests serves as a useful resource for them in this regard.
New content is added to the blog each day for visitors to be updated with the latest competitions that they can join. As an occasional bonus, helpful tips will also be given for them to improve their chances of winning.
The launch of the blog coincides with the release of MasterCard’s survey results indicating that 70% of consumers in the Asia-Pacific region are more inclined to cut back their spending on discretionary or non-essential items, in light of the worldwide financial crisis. A recent survey by Pulse Asia also determined that 67% of Filipinos are expecting hard times in the coming year.
Thus, visiting sites such as Pinoy Contests where one can win prizes and get freebies seems very attractive and rewarding indeed.
[...] addthis_url = location.href; addthis_title = document.title; addthis_pub = ‘USPB’; The global financial crisis has indeed caught the interest and concern of most Filipino. The proof of this is that the search [...]