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Ads Are NOT the New Online Tip Jar
Friday, 22nd August 2008 (by J.D.)This article is about Administration, Entrepreneurship, Odds and Ends
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Seth Godin wrote today that ads are the new online tip jar. “If you like what you’re reading, click an ad to say thanks,” he says. On the surface, this seems like a nice gesture. Underneath, however, it’s a bad idea.
When people ask me how they can support Get Rich Slowly, I intentionally steer them clear of clicking on ads. Sure, I get a nickel or a dime or a quarter every time somebody does, but there are long-term ramifications to empty clicks. If an advertiser spends money on a campaign that doesn’t work, it’s not going to renew it. In the long run, “false” ad clicks don’t help me — they hurt me.
Here are four ways you can help web sites, including this one:
- Participate in the discussion. If you have something to say, say it. Much of this site’s success is due to the active, intelligent community. You folks share ideas and offer suggestions. Any site with active readers is going to grow stronger.
- Tell friends. If you like what you read, share it. Send stories along via e-mail. Mention the site (if appropriate) in conversations.
- Click on ads that interest you. There’s nothing wrong with clicking on ads for topics that interest you. If I’m at a photography site, I might click on an ad for cheap memory cards, for example. But don’t just click an ad because you think it’s a good way to leave a tip.
- Link to the stories you like. This is the number one way to support your favorite web sites. At the root of everything — traffic, revenue, subscribers — are links from other sites. If you enjoy a site, or if you find a particular article you like, then link to it.
If you used my list of savings accounts to find a good rate, link to it. If my guide to the Roth IRA helped you, link to it. If you like the ongoing series about our garden, link to it. If you find something of value at a site, link to it. If you can’t link because you don’t have a site, then tell your friends.
The best way to support a site is not to click on the ads, but to spread the word. Trust me: if new readers come, revenue will follow.
37 Responses to “Ads Are NOT the New Online Tip Jar”
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August 22nd, 2008 at 12:08 pm
Thanks for the explanation…I’ve always wondered why Trent discouraged ad-clicking, and now I know!
August 22nd, 2008 at 12:31 pm
Thank you for posting this. Seth’s article is just about the most short-sighted, stupidest thing I’ve ever seen. Watch how quickly free-content goes away once advertisers leave ad networks as their clicks stop converting. Clicking on ads for the purpose of supporting a site is not a tip, it is called click fraud.
August 22nd, 2008 at 12:36 pm
I have always found Seth Godin to be a top notch writer and quite a character.
I also agree with J.D. about the whole “empty click” thing. It can definitely hurt a web operator. Many of the ad serve companies analyze click-throughs thoroughly and will actually terminate websites that are found to have “unnatural” click-through rates, as well as a large concentration from a limited number of differing ip addresses. Personally, I try to target the advertising appears on my blog to companies that I feel can benefit my readers should they choose to click on a link. I actually wrote about this mutual benefit due to some of the things I have heard and read on other blogs regarding peoples’ attitudes about website advertising: Website Advertising Benefits More Than Just the Site Owner
August 22nd, 2008 at 12:38 pm
Great explanation of ad revenue and the danger of false (or gratuitous) clickthrough, JD. I think your approach is much safer than Godin’s, Google will ban you in a heartbeat if they feel something fishy is going on. They’re very protective of their advertisers and I don’t blame them, clickthrough already has a borderline reputation with advertisers at best.
I’m surprised Seth would say something like that as one of the most well-known SEO gurus in the business. I need to go check that article out.
Great post.
Cheers,
Odd Lot
August 22nd, 2008 at 1:07 pm
Good point. I’ve been known to click on links that I might not have otherwise, but no more!
Mostly I wanted to comment to say that the feed seems fixed, except this post says it was posted at 6:27 PM and it’s 3 PM-ish here in CDT.
August 22nd, 2008 at 1:13 pm
Not meaning to offend nor to defend Seth, but simply to play Devil’s Advocate, I have to partially disagree with you. This issue isn’t as black and white as either of you would suggest.
Your points are excellent and should be followed with every content consumer without exception. That said, Seth is speaking to a different audience on behalf of a different type of blogger.
I love your blog and your content keeps me here. That can also be said of Seth’s Blog. I think where these two blogs differ is the degree of penetration and readership sensitivity of the two audiences.
With Seth, nearly every post is shared among really big social media buffs. I almost don’t even have to subscribe to his feed because I know my filter channels will link to him almost invariably. He seems to have attained this status where his posts are worth sharing simply because they’ve been posted (something like xkcd’s webcomics). As a result of this, his readership has both high penetration and people will stick around after a period of inactivity or one or two bad posts.
Most bloggers don’t have that luxury. This is important in the context of ad subscriptions. If Seth loses out on a renewal, there are people lined up to get facetime on one of the most read blogs out there. He has the luxury of being entirely correct with the “tip jar” analogy in his case.
Others have to balance demand for advertisers to put up ads on their site with the degree to which they would recommend treating their ads as tip jars.
Am I off base here? It seems like there’s an effect of content penetration, and readership sensitivity on how well the tip jar will work out for a content producer.
August 22nd, 2008 at 1:23 pm
Excellent point and something I think we often forget. A site won’t make any money if it doesn’t have readers.
Bloggers really need to focus on the big picture — generating content and reaching new audiences.
http://whyspendmoney.blogspot.com
August 22nd, 2008 at 1:31 pm
I don’t even look at the ads, couldn’t tell you about a single one of them.
I do recommend the site to others though.
August 22nd, 2008 at 1:36 pm
What about adding an actual tip jar so readers can make contributions? I’ve seen this on other sites.
August 22nd, 2008 at 1:36 pm
I agree. Personally, I don’t like ads much at all. The only “ads” I put on my site are links to books that I recommend reading. I don’t like to support random businesses. If a book is good, I will put a link to Amazon for it. That way both the person visiting my site and myself get something out of it.
Granted, you can get a lot of these books from the library or a used store. I don’t discourage that, but if you want a new book, then purchase through a site to make sure they get the commission.
August 22nd, 2008 at 1:54 pm
I disagree on the readership bring revenue theory. So many Web 2.0 companies are focusing on getting eyeballs first and trusting that revenue will come along naturally. Look at twitter. Millions of people use that service and twitter has had to start cutting back features as they continue to operate at a huge loss.
August 22nd, 2008 at 2:24 pm
@Shaun
I think that the mistake web2.0 companies make in going for readers is that they leave the revenue generation out from the start. That is, they don’t have ads or subscription fees or whatever. A million readers a day aren’t won’t earn you a penny if you don’t do something to monetize your site.
A few months ago, I shared a talk from one of the guys at 37signals in which he revealed their secret for making money: they charge for their products. But the other secret he didn’t mention is that they have an audience.
To succeed, a site needs both readers and a revenue source. If a site doesn’t have enough readers to generate the revenue desired, telling them to “click on the ads to leave a tip” is not the solution. The solution is to find more readers or to put up ads that will interest them more. Begging for adclicks doesn’t help anyone.
@Derick
You make some interesting points, but I still believe the solution for any site that isn’t making enough is to get more readers. The most effective way to do this is to get more links to your site. More links means more search traffic means more readers long-term. There are many components to running a profitable site. People disagree on which is most important. I tend to side in the “content is king” camp.
My main point is this: a web site earns money by having readers. With large numbers of readers, statistics are in your favor. You will earn ad revenue. To get more readers, write stuff that people like and will share (by links or by word of mouth). Then you don’t have to ask people to click on your ads.
August 22nd, 2008 at 3:13 pm
One of my first sites I made in order to make money… one of my friends clicked the ads a ton of time to “help me”… needless to say, Google banned my adsense account. I now have another one, but still, it sucked, and ended up hurting me more directly.
August 22nd, 2008 at 3:41 pm
I read this and both of Seth’s original and follow up post. You both have strong points but I am not sure which view point is better..
I did write my own thoughts on both views that you can read at http://www.pastelpoetry.com/2008/08/22/online-tip-jar/trackback/
I would be interested in hearing your thoughts on the new post :o)
August 22nd, 2008 at 4:12 pm
Such a great post. True integrity in the blogosphere, very nice. I am linking/referencing to you in a post to be published tommorow on succesful finance bloggers. Thanks for the inspiration!
August 22nd, 2008 at 4:25 pm
That clears some things up for me. Thanks for the tip (-:
August 22nd, 2008 at 5:12 pm
Brilliant post. I love the topic. Online tip jars…new term for me…
August 22nd, 2008 at 7:13 pm
Suggesting to people to click on your ads also can be against the ToS of the ads that you are showing. It depends on the ad delivery system.
So, it can be illegal.
I much prefer suggesting people link to me. It spreads my content around more, and that’s worth more than a few cents from an ad click.
August 22nd, 2008 at 8:01 pm
JD, I must agree with you that people should not click on ads that they are not interested in — especially with the thought of tipping the site owner. Seth’s suggestion sounds like going to the bar and stealing a dollar from the guy next to you to tip the bartender.
However, I think that Seth was trying to make a point — being absolutely anti-advert and refusing to click on any ads is also not a good strategy. Free content might eventually die out if no one ever clicks. I think he could have made the point without suggesting what sounds like click fraud.
I used to use the ad-blocking FF plugin, but eventually turned it off. I now see viewing adverts as the price of admission to a site. If a site is “over-monetized” I just refuse to visit again. Besides occasionally, I do run across an ad that I want to click.
August 23rd, 2008 at 1:32 am
I make it very clear to my friends and family not to click on my ads!
Building a solid audience for my blog has become my primary focus. Revenue “may” come later, but I get equal satisfaction just knowing that my energy saving tips and personal finance advice is helping other people.
One positive comment from a reader thanking me for a helpful tip is significantly more gratifying than earning a couple of bucks in ad sense revenue.
I am now focusing on higher quality posts, even if they take 2 or 3 days to write, instead of “spamming” the blogosphere with sub par posts that don’t represent my best effort.
If my readership drops because I don’t post everyday, at least I am being true to myself!
August 23rd, 2008 at 7:27 am
Long term value vs short-term profit. Seth is obviously advocating the latter, probably because advertising isn’t his primary source of income.
Obviously he’s wrong. I’m kind of surprised he posted such a short-sighted suggestion, based on his reputation (I don’t read his blog). Anyone who has actually sat down and thought about it for more than 10 seconds can figure that out. It’s common sense.
Much better to have a virtual tip jar so readers actually *can* tip you rather than undermining the economics of online advertising for short-term profit.
August 23rd, 2008 at 7:36 am
I’m surprised to hear that come from Seth Godin… he’s a bit of a marketing genius NORMALLY…. but he should know way better than this.
I’m with JD 100% on this… click on the ad if it interests you.. not as a thank you. If you want to say thanks, Subscribe or leave a comment. Maybe even drop me a link if you’re a blogger yourself.
August 23rd, 2008 at 10:06 am
The key to any site is traffic. We can help each other out by spreading the word. Thanks
August 23rd, 2008 at 10:27 am
Thanks for this - I’m on both sides of the advertising coin (advertiser and publisher) with various ventures, and Seth’s advice is not good. For anyone.
August 23rd, 2008 at 10:28 am
Godin wrote a followup article that addresses your main argument against his:
“If an advertiser spends money on a campaign that doesn’t work, it’s not going to renew it.”
(And he posted his article before you posted this one…)
August 23rd, 2008 at 11:22 am
I read Seth’s post. And then I read the FOLLOW-UP post, which did some more explaining. Personally, I think Seth is on to something. But you have to read both posts.
Read his follow-up and follow his logic. It works.
August 23rd, 2008 at 11:31 am
This is an interesting perspective.
There has been talk about how short comments are undesirable. Well, I think that’s not really true.
Short comments such as, “nice post” for the mere sake of leaving a link is problematic. But if the person writing it was sincere about it and wanted to express that small sentiment.
Then it is absolutely warranted and a valid comment.
August 23rd, 2008 at 11:57 am
Benjamin has this completely correct. If you have quality content “banked” and you want to produce quality everyday, then great. But I for one am so tired of all the crap that exists just for the sake of posting every day.
August 23rd, 2008 at 2:09 pm
i think that blogs are best when served up ad free unless you opt in, it might not make commercial sense but from a readers perspective i prefer not being marketed to when reading
August 23rd, 2008 at 2:33 pm
I second Kevin’s sentiments in agreeing with Benjamin. When the pundits say that “conent is king”, they do not mean throwing something together simply for the sake of having posted something. There are times when I simply cannot write anything of value, so I just brainstorm and throw a bunch of ideas onto a sheet of paper. After going through all of the ideas I usually find something worthwhile that will provide benefit to readers. My company focus is on providing value as an advisor, and I take that same belief to something as “simple” as blogging as well.
August 23rd, 2008 at 6:44 pm
Okay, obviously I am a novice among some experienced bloggers. I just created my first blog a few weeks ago and I am still unsure about how people generate income from a blog. I’ve heard stories about people replacing their income by blogging and since nothing is being bought and sold I am unsure of how revenue is generated for the site. Can anyone share a simple explanation of how bloggers earn income? I did not establish my site to earn income, but I’m not opposed to making a little extra scratch either. I know I need readers first, right?
August 24th, 2008 at 8:09 am
Well it’s okay to encourage your users to click on ads..but only if those ads are referral or cost per action ads like opening an ING savings account or adding your e-mail address to subscribe to a newsletter.
Other than that encouraging your readers to click on ads is totally illegal. It’s like stealing money.
August 24th, 2008 at 9:09 am
Great advice JD. Seth definitely missed it big time on this one.
August 24th, 2008 at 12:00 pm
The other point that I think is worth discussing is the emphasis on clicks above all else.
There are large numbers of advertisers for whom the value of advertising is about subtle shifts in opinion and attitude. Clicks and other transactional metrics are rarely a good measure of how an audience’s perception of a brand changes for better (or worse).
In the long run it’s a far stronger position to have a growing audience of repeat visitors about whom you have some level of demographic information than it is to have the kind of “passing trade” that’s associated with the “like this, leave a tip” mentality. From my experience in selling to large brand advertisers I know that ultimately they’re still buying access to an audience that will see their advertising, not the cheapest route to the most number of clicks.
August 24th, 2008 at 6:05 pm
I’ve never been a fan of advertising, but I do appreciate a “referral” from a blog I know and love. To me, it’s just another way blogs are helpful; content is important, links are important but I believe good advertising can enhance a blog. I want to know what works, who has the best price, the best product. It’s like asking your friends or neighbors for a referral.
August 26th, 2008 at 11:40 pm
My first thought ( and if no one has mentioned this it baffles me):
If you are using something like Adsense, someone who decides to “help” you could get your site removed or account deleted for suspicious click activity.
And, As someone who has both served ads and paid for ads, I have to say Godin’s advice was terrible.
August 28th, 2008 at 9:47 am
JD, surprised you didn’t mention affiliate programs as well. I don’t have the time at the moment to find an example, so correct me if I’m wrong here, but I could swear I’ve seen some affiliate links in your posts in the past.
If you’d like readers to tip you, how about recommending they click your Amazon affiliate link before making their next purchase there? That way you get something, and they get to help you without it costing them anything.
You may also want to setup a paypal donation thingy. I’m sure there’s a few people who wouldn’t mind paying a couple bucks back for the hundreds you may have saved them.