Written on March 20th, 2009 at 12:03 am by Darren Rowse

How has the Economic Downturn Impacted my Blogging Earnings?

Miscellaneous Blog Tips 94 comments

How has the economic downturn impacted your blog earnings?

Team Nirvana recently emailed to ask me what impact the recession has had upon my blog earnings – it’s actually a question that I get quite a bit when talking to friends and family – (I guess everyone is asking it about everyone’s jobs at the moment).

In answering the question here I want to acknowledge that this is not one answer for all bloggers. As I’ve pondered the question for my own circumstances I’ve realized that the economic downturn will be impacted bloggers very differently depending upon factors such as their blogs topics (some topics are booming at the moment while others are not), the life stage of their blogs and numerous other factors such as the demographics of their audience.

That being said – here’s how things have been going for me of late:

Ad Revenue – Steady and Up in Private Ad Sales

My biggest income stream across my blogs at the moment has been advertising revenue. This comes from a combination of sources including AdSense and Chitika (I run these on DPS) and Private Ad Sales (here on ProBlogger, DPS and TwiTip) as well as a few other ad networks like Shopzilla and WidgetBucks.

Overall my advertising income has increased however this is largely due to an increase in private ad sales. I’ve noticed that ad networks like AdSense, Chitika, Shopzilla and WidgetBucks have been holding their own for me. Some have decreased a little but this is mainly due to me dedicating more ad space to private ad sales and decreasing the space I give to the networks (due largely to demand for private ad sales).

While I’m hearing other bloggers reporting a decline in private ad sales (which they attribute to the economy) I’ve seen the opposite and I put it down to a couple of reasons:

1. increasing traffic – DPS has continued to really grow in size and a natural reaction to his is that it is easier to sell to premium sized advertisers. For example we’ve recently been doing a large campaign with Lenovo which has gone particularly well.

2. my topic – here on ProBlogger I’m in a somewhat unique position to be blogging on a topic that there is actually more and more people coming online to learn about (making money online). As a result of this I’ve noticed more advertisers coming into the space. Similarly – starting a blog on Twitter recently was pretty good timing as Twitter is really growing at the moment.

Affiliate Revenue – Up a Little

Affiliate sales have certainly been healthy for me over the last 6 months (on all of my blogs). Again, there are a number of reasons for this:

1. Traffic is up – (see above – increased traffic means that you’ve more people potentially seeing your affiliate promotion)

2. Increased Affiliates to Promote – I’ve always found that affiliate marketing earnings seems to have periods where it naturally goes up and down partly depending upon what programs there are launching in your industry. For example in the ‘blogging’ space there were a few quality affiliate programs that all launched within weeks of each other a couple of months back.

3. More emphasis on Affiliate Marketing – at DPS I had rarely done an affiliate promotion (except for Amazon) since I started it two and a half years ago. In recent months I’ve begun to experiment more with it as an income stream on that site (with mixed success). I’m still looking for a high quality product that ‘fits’ perfectly with my audience but the attempts that I’ve had have brought some success so far.

Job Boards – Up a Little

The ProBlogger Job boards have continued to grow over the last month or so (particularly in the last month). Again this is one of those examples where the economy itself has actually benefited me as more and more people are moving online to find work and more and more people are looking to hire in this space.

Dollar Conversion Rates – Up

Perhaps the biggest contributor to an increased income of late has been the decline of the Australian dollar as opposed to the US dollar. Mid last year we were close to a $1USD = $1AUD scenario. As you’ll see by the graph below this has changed significantly which means as I write this $1USD converts to around $1.50AUD. Considering 99% of my income is in USD things have certainly improved of late. Of course the preceding 4 years saw us going from a similar position to what it was back in July so there are ups and downs in this type of thing.

Picture 4.png

Overall – Up…. a little

The largest contributor to my income increasing of late has been the conversion rate. All of the other three areas (ad sales, affiliate revenue and Job Board earnings) have seen small increases but not massive. In fact if you were to analyze the earnings increases against traffic increases I’m almost certain that traffic is up significantly higher than earnings – if traffic had remained steady I suspect earnings would have dropped.

My Strategy Going Forward

Here’s what I’m concentrating on in the next 6-12 months.

1. Building the Best Blogs I Can and Increasing Readership – while the amount of money that companies are spending online with their advertising MAY be decreasing, my approach is to continue to invest as much of my own time and energy into building great websites to attract what advertising I can now but to position myself for when things improve.

My prediction is that the internet is here to stay and will only continue to grow. As a result I firmly believe that we’ll see the ad dollars come back. I want to have sites with thriving communities and large readerships when the advertisers return.

2. Exploration of New Income Streams – on both of my main blogs (here at ProBlogger and at Digital Photography School) I am working on adding new income streams. I’ll hold off on announcing them here and now but in both cases they build on what I’ve already been doing on the sites and will hopefully add revenue so that I’m not quite so reliant upon the advertising revenue that the sites currently draw in.

How has the economic downturn impacted your blogs?

Learn how to earn more using your blog

Get more traffic, income, & loyal readers

  • Proven techniques I use for my own blogs
  • Tools & services I recommend
  • Exclusive tips to make blogging easier & more profitable

Email:



94 Responses to “How has the Economic Downturn Impacted my Blogging Earnings?” - Add Yours

  • The more people loose their jobs; more people reading blogs. I think that many blogs will go up because more people will be online looking for work. Especially job boards…

    Thanks,
    Nate

  • Hi Darren,

    I’m in the mind power and personal growth niche market.

    I guess the economy hasn’t really impacted my blog. I’m new to affiliate marketing but I’ve had a 400% increase in my affiliate sales in the last two months as compared to the last two months of 2008.

    This is mainly because of the same reasons you mentioned above; higher traffic and better conversion rates. I expect the income from these affiliate programs to continue to grow as my traffic grows. I would be curious to hear what others say???

  • Thanks for sharing! It’s always interesting to hear what the “big boys” are doing in terms of bringing in revenue. I haven’t incorporated WidgetBucks into my revenue stream as of yet, but now I’m going to take a second look at it. Thanks again!

  • I think there are both challenges adn opportunities in this downturn. While some companies might be cutting back on their online advertising there are certainly few who want to migrate to online from other expensive ad mediums. Also I dont think adsense revenues will be impacted by downturn at all.

  • Well, I bet you’ve got even more mouths watering now. If I didn’t already have a blog I’d go start one. People are turning to the web when traditional income sources are flailing. My first thought was your photography blog wouldn’t see the same influx as your MMO blog, but it’s linked from here and people are turning to creativity as a way to earn . . . writing, art, photography, they’re all seeing a growth in online coverage right now.

  • My website is far too small (low traffic) to determine whether the economic downturn has any effect. But it is good to see that, at least for you, it has had little effect.

    For now you are the only economic indicator that matters to me.

    When problogger begins to be effected then my website will surely also be effected. That is when the world crisis will turn into a personal crisis.

  • Hi Darren,

    Very nice to hear things are going well for you. Things are going very well for me as well, although not from blogging.

    I read PB a lot and am just starting to blog now!

  • Phew…. that’s good news atleast from someone during this economic downturn :)

  • Overall I’m up but traffic has increased considerably.

    eCPMs for Google have held steady for some sites, but for others I’ve seen a considerable drop.

  • That’s encouraging news. I would agree that many blog niches right now, particularly the personal finance branch, are thriving right now due to the economy, as it’s exactly what people are looking to read about.

  • My traffic and earnings have either held steady or increased. February was my best earnings month ever!

    Since I blog about personal finance, it makes sense that my traffic and earnings would go up some right now because people are yearning for information about how to save, earn more money and get responsible about their money because of the down economy. i expect it to be a good year in the PF realm.

  • Loved your post and I agree, now the economic situation will likely drive the quality of blog posting, which should, in turn, drive traffic towards better quality blogs. Leadership should increase as a natural consequence of quality postings.

  • I found the part about the exchange rate to be the most telling side; when looking at the economy and the way the internet can be leveraged. Great article Darren.

  • To capitalize on the exchange rate, I’m going to start blogging from Iceland. Really? No, but what would those Number$ look like?

  • i had an amazing, record quarter last of 2008, so Q1 2009 pales in comparison, but overall it’s the same or a little better than Q1 2008. i work with women’s clothing retailers and have seen affiliate commissions drop significantly since November/December 2008, in addition, I’ve lost several advertisers (the number of smaller online boutiques is diminishing as many close) and that has always been my biggest source of revenue.

    so i see that the recession has impacted my direct advertising revenue as many of the smaller boutiques cut back on expenses…advertising is the first to go…overall i feel like i’m more impacted by the Q1 retail slump than anything else – that’s not a result of the recession.

  • My earnings have only been growing as I’ve developed my websites. Starting them, though, has been a reaction to the economic downturn. I want to build something valuable for a second income stream and hopefully one day I’ll be able to turn it into a job like you have. For now, it’s helping the monthly bottom line and I expect it to continue to.

    Thanks for your breakdown.

  • As Roman said, my blog is small so there has been close to 0% change for me. I’m always interested when you share your progress with us. It’s usually encouraging!

  • Since the year started my CPC ads are taking off. I am getting more traffic than last year. Some of my sites went down recently but others still got clicks and I didn’t lose money. Great time for internet marketing right now. Especially for getting paid for leads.

  • This is the type of blog post I like to see here on ProBlogger. I enjoy seeing real data on how others are moving forward. And I especially enjoyed the part where you talk about your plans for the future. Keep up the good work Darren!

  • I have noticed an increase I my private ad sales as well throughout my blogs. But mostly on http://www.GuruOfSales.com
    The affiliate stream has been exactly the same.

  • It must be interesting and nerve racking that you are so reliant on the AUD/USD conversion rate.

  • I’ve seen increases on the Adsense side with a decrease in private ad sales. Mine is fairly easy to explain. My traffic is continuing to grow and the old advertisers are clamping down and spending less on advertising.

  • Darren,

    Very nice to hear things are going well for you. For me, actually since the economic downturn I am grateful things has been going so well! Especially on my web design services when selling new themes or even with siteflipping. My niche blogs stream has been exactly the same.

    Regards

  • My income streams are only increasing as I start to gain more traffic everyday!

  • Thats good news for you but as far as i am concerned i have been affected a little bit by it.

  • Congratulations Darren! I think most of us are more interest to see how much you’ve earned in a month haha!
    Between, my earning in 2009 has been increasing, I’m happy to see that and I’ll work harder to improve it! :)

    Regards,
    Lee

  • Ironically, my monthly affiliate earnings (through Sheet Music Plus) have more than doubled since the economic downturn. At the same time, my AdSense earnings have declined significantly. Because of this, I’ve dropped the AdSense and am doing more to promote sheet music sales, which pay out significantly more than AdSense units given my niche.

  • I see a slight increase in the income stream but its quite minimal as the niche of the website also plays an important role.

    As Problogger is place which actually posts about making money and helping wannabe-bloggers learn the art of blogging, so its a potentially growing subject and is bound to attract more user attention.

    By the way, I see a type there in your “Increasing traffic” point Darren :)

  • I see a slight increase in the income stream but its quite minimal as the niche of the website also plays an important role.

    As Problogger is place which actually posts about making money and helping wannabe-bloggers learn the art of blogging, so its a potentially growing subject and is bound to attract more user attention.

    By the way, I see a type there in your “Increasing traffic” point Darren :)

    Edit–
    I did a type there too! its typo and not type in my comment :)

  • my Traffic is up a lot. my adsense is up..probably because of the traffic…

    my ebook sales are down…like in half…

  • Thanks for being so honest and up-front. Looks like I have some work to do on my site. I would really appreciate your comments regarding my site and how my ads are placed. Thanks if you have the time. I know you are busy! Have a great day!

  • thank for sharing. good to hear from the pro

    http://health.okguru.com

  • Thanks for the post Darren.

    It surely encourages and increases the morale of the bloggers like me and thousands around.

    Hope everyone do take these points into consideration and do their best in increasing the monetary value of their blogs and sites.

  • Thanks for sharing this with us. Darren if you don’t mind i just want to know one thing from you. How much your yearly revenue from all sources ?

  • Glad to hear the positive news!

    My site is rather a narrow niche, but over the past year, from January, 2008 – through the end of January, 2009, as my traffic has increased, so has my revenue. Then, at the end of January, something weird happened, and I’d love to hear what it could be attributed to.

    January, 2009, like all the months before in 2008, saw an increase in Adsense earning – January 09 was my best month yet. At the end of January – almost with the turn of the month – my income fell by almost 1/3 through February, though my traffic kept growing, and my CTR and CPM kept their average and even higher. This month, I’m down about 1/2 of January, though in the last few days, I’ve seen a slight increase again.

    So, with traffic growing, CTR and CPM keeping their average and sometimes higher, but w/ income falling, I can only assume that, in January (and the months previous), AdSense was paying more per click than they are now, right?

    All I can chalk that up to is that perhaps AdSense hasn’t been getting the bigger advertisers in my niche? And if the advertisers aren’t paying for ads, then AdSense won’t be paying as much to publishers…

    I don’t know how else to figure it, anyway.

    That’s my story right now.

    I’m glad to have read your post on this, Darren! Thanks!

  • Hey Darren,

    previously wrote about AdSense publishers in the financial crisis. Focused on ad-relevancy. Less advertisers means less relevant ads.

    http://www.duoblogger.com/adsense-publishers-in-the-financial-crisis/

    Regards,
    Hendrik

  • Thanks for being so honest and up-front. Thanks for sharing

  • There are very few industries in that can thrive financially in this current economic environment. If you’re doing decent, you’re doing great.

  • My primary blog is too new to measure the effect of the economy, on it. I know I was making more per click on my Christmas blog last year, than I am on this one, but it is like comparing apples to oranges.

  • I’m happy to hear someone is doing well. I’m one of those “lucky” bloggers who have seen a drop. I’ll wait it out and make some changes though. We all have to take a good look at what works and doesn’t with this economy.

  • Overall everything has remained steady with a slow growth trend. I am working on products now as I think the Internet market is growing with all the people looking for new options online.

  • Hi Darren,

    I have one guaranteed way of earning more in 1H09 than 2H08 – start a business in February 2009 :)

  • With regards to currency I’ve experienced a similar thing (I’m in England), used to be just shy of £1=$2, now about £1=$1.40, when I convert get about 30% more revenue! Adsense down slightly but private ad sales up a lot. So all-in-all in England, in my experience, seems to be a similar pattern. Although not quite six figure sums ;)

  • I think in terms of already popular how to or entertainment blogs, for the most part you will continue to make money specifically because people always want to learn new things or be entertained..two areas that should never lose visitors..

  • I really like it that big boy has finally open up about this topic..i was thinking of writting my own analysis on my blog.but anyhow its all covered here..All i can say,blogs like problogger.com and http://www.frogblogger.com have great niche and will keep on Raking revenue with less difficult simply because of their audience nature.Do u guys agree?

  • It will be interesting to see how the global economy affects this issue. Your point about the currency exchange is most interesting. But I also suspect that the blogosphere is a bit insulated compared to say the corner shop with high overhead.

    Glad to hear it’s going well for you. Your blog is clearly valued.
    Thanks.

  • It is only getting better and I attribute that mainly because of the down economy, more and more ppl are looking for other ways to get paid.

    Of course, we as internet marketers have the answers they need ;)

  • I have not noticed much difference.

  • Great plans and it is really great to hear that your blog is booming and you are making more and more profit. I hope this year goes well for me.

    Mohammad Afaq
    Free Website Traffic

  • Thanks for the post Darren.

    It surely encourages and increases the morale of the bloggers like me and thousands around.

    i will added ur post on my blog
    http://bloggeronline.net

  • Heey Mike,Am so happy for you that u haven’t noticed much difference..Keep it up brother!.by the way I like your blog as well!

  • Darren
    more traffic is always the best way to counter any downturn, but I’d be interested in what you’re seeing in CPM rates from networks vs your net return, as this might be a fairer measure of the overall market.

    Personally, I’m seeing a mix depending on the network. Adsense seems to be heading down a bit CPM based, but others have held their own, for example Valueclick.

  • It sounds as though you’ve got your strategy and plans sorted Darren.

    I’ve found it interesting how you have a vested interest in develop a Twitter focussed blog. Thats a great idea as it mirrors the utility of this blog for bloggers.

    Question: why Twitter and not a blog about Facebook?

  • Thank you, Darren, for sharing this bright spot of blogging income. When Merchant Circle’s survey of over 1100 businesses found that over 75% of them were reporting moderate to severe declines in income it looked like the economy might be affecting a very wide range of businesses.

    I am sure your wisdom has quite a bit to do with your excellent timing and choices of what to promote. Jobs and making money blogging are certainly growth niches when the economy is in decline and so many are being laid off or fear that they may be next.

  • nothing changed, my revenue is still the same, hopefully stable :)

  • Excellent article Darren.

    I’m curious, and maybe this is a topic for another blog……
    How do you choose affiliates to partner with? You have an excellent reputation in cyberspace, so I am thinking there must be certain criteria that you use.

    Have a great weekend!

  • Last November/December were bad for me, but I’m seeing new growth through this year, I believe the popularity of Twitter is helping, it’s good for all bloggers, because Twitter isn’t a walled garden.

    @ferodynamics

  • Although I have been marketing pet products for about 5 years, I just started blogging, so this info is very timely & pertinent. Thanks!

  • all seems to be going well on internet business with the economic downturn and a lot of currencies has fallen against the dollar. make more money guys

  • My revenue was seriously down

  • Increasing revenue graph is the most satisfactory thing for any businessman. I am also trying to get maximum variety related with my niche and hence can make good money.

    As in this time visitors are more consious about their spending and attract them to spend money is really a tough task.

  • Congratulation Darren, increasing earning in this down time is great news.
    I have also not found any big impact online ad revenues. It seems this is the field which will get less impacted then other. I feel it is the right time to start a new online project to get more benefit in future.

  • I’m starting to see revenue creeping up again after a downturn. I hope it continues!

    I too am benefiting from exchange rates — US dollar to GB pound.

    I totally agree that bloggers should continue to build great content regardless of the situation, as it should put them in a much stronger position when things eventually pick up.

    Very interesting insights.

  • Nice statistics for your blogs. Its really great.

  • Darren,

    Your blog is interesting, how long have been blogging? I like this.

  • My blog is too young for me to be analysing changes, but it’s great to know what resilience online businesses and, more specifically, online advertising has during economic hardship.
    Great blog, thanks!

  • Interesting that you use widgetbucks. I recently added them to my websites but they have not earned me much yet. I am comparing them directly to Adsense by rotatating them in the same spots (Wish I had a wordpress plugin that could do this automatically).

  • I am seeing the same thing all over the internet, advertisers are curbing their spending while more and more people are turning to the internet looking for new ways to make money.

  • I dont agree with you darren, I saw a sharp reduction in ad pricing by the advertisers and hence many peoples adsense revenue is way down 50%. Probably since you are using affiliate links in your blog you are making some money.

  • Let’s just hope everything will be back to normal soon..

  • It has not really impacted my revenue as far as blogging is concerned. I have seen a decline in Adsense but that may be related to me not updating the blog frequently and also the decline in traffic since the new year.

    Blog revenue has not been great for a while, even when I was posting more frequently. I think that the revenue will be about the same even when traffic increases as I post more. So, for the Madlab Post, the “economic downturn” that many people are talking about at this time around the nation has not really affected the revenue of my blog. It is as slow as it has always been.

  • I don’t think the economy is hurting my sites all that much. I have noticed decreases in only two areas: (1) My private sales of ads and blogad sales to smaller companies has gone way down. I think the little companies are cutting back on advertising. So that is the one area where I have taken a hit, but I didn’t have a lot of those ads anyway and they were never high dollar amounts. (2) My earnings from ad networks have gone up because my traffic has gone up and because of instances with a guaranteed CPM rate. But I noticed that some companies are paying less per CPM to the networks for ads. Not all by any means, but some.

    My adsense generally has remained the same or gone up slightly as traffic increased. This month it is way up for unknown reasons. My Shopzilla earnings are about the same, and my affiliate sales are up. Most of that I attribute to additional traffic. I have noticed an increase in sales of cheaper items and less sales of luxury items. But the increase in cheaper items has been quite large, making up for any loss in the higher end sales and generally surpassing it.

  • Though the economy is downward spiral, one can always make extra income in the convenience of your home, having no hassles of getting into traffic going to your office. Making money online does not always mean that you have to have a product or service to sell. You can earn money by having our own blog or by joining making money online programs like affiliate marketing.

    thanks for sharing! cheers to your success!

  • I don’t think the economic crisis/downturn has affected me. During these days, my blog’s earnings kept on increasing. Weee..

  • The increase in my revenue has slowed over the last two month but continues to be and increase which is better then a decrease. I do need to explore additional online revenue options and income streams.

  • Daren I have almost the same strategy as you ,and thanks for your last discussion about long tail,I write my “future post ,base on that long tail suggestion and although the conversion is decrease ,the unique visitor do add ,and with “next redesigning front page goes to more table less.I believe I can stay survive during the “recession repair”

    muri

  • Yes, the number of advertisers and the rate of per click is also decreased, as i noticed.

    Imran.
    http://www.EarnByWriting.com

  • i see significant decrease on my earnings to 1cent. can u belive it.. i feel the crunch now..

    Regards,
    Rajj
    http://itshumour.blogspot.com

  • You should check out adsense…it has lower less than 1/2 for almost all the publishers.

    -Mike

  • my site has little revenue

  • Since the advent on the financial crisis last October, coupled with the seizure of both Bangkok airports, I started to run daily stories on my travel site. At that time my web design site had also slipped so, studiously, I now blog every day (except weekends) for both sites.

    Due to this daily diligence, site hits have doubled, although there has been a dramatic decrease year-on-year on hotel bookings, which is understandable.

    As for AdSense, well we’ll have to evaulate that later but as far as I can see ad clicks are on the ascendency. My take on it is to provide more content and thereby derive more revenue.

  • I wish I had had a 33% increase in the currency exchange. My revenues are down 60% from December of last year. I do a lot of retail sales and Christmas was good. The worst drops before were only 30% so the 60 hurts. I will just keep plugging. At least I am stil making a living and not out looking for a job-ugh.
    Rick

  • My earnings are way up for some reason. I thought they would dive. I do tech stuff though, so maybe that’s just in high demand.

  • I know of a blogger that uses adsense. He said he hasn’t seen a reduction of his adsense income.

  • Well, as of right now I’m working on increasing my traffic. My traffic has gone up. Hopefully, this will mean an increase in revenue.

  • I see many people losing their job cause crisis economic….. that’s great daren….. you can survive and grow better

  • I really like this article, as someone who is just starting out, I was curious about this very thing and I think many of the comments here are dead on that web usage would be up this year….I just hope I can get this blogging thing figured out in time to capitalize!

    Thanks Darren!

  • Search engine marketing, online ad campaigns and much more full web services!

  • Interesting analysis, my blog earnings and ecommerce earnings are up as well, but my traffic has increased heaps.

  • many big company ged bad impact crisis economic……great, you can survive and grow

  • Darren you have changed well according to the conditions and its a lesson to all of us bloggers how to go about in the recession.

  • Hey Darren,

    Glad to hear that all your income sources have been increasing, even those some less than others. Personally I feel that it is during these times that there are opportunities to start new blogs (especially when it is about the topic of money) as people are now more desperate to earn money and thus more likely to visit your site. For me, I just started one of my own sites recently along with a partner on affiliate marketing.

  • i could earn huge money by my blog in this method .

    advertise is the best way for extra income.

  • I don’t think we will really need to worry about the invome from blogs going down in the recession as people are more likely to look online for cheaper alternatives and spend more time researching topics before they spend any money on them. Also check out “did you know” on YouTube, I don’t think the growth will be slowing down..


Comments will be closed off on this post 90 days after it is published. Apologies to those this impacts but it's a regrettable and temporary measure to combat a growing comment spam problem. See our most recent posts where you can comment here.

Close
E-mail It