The Correlation Between Website Traffic and Advertising Revenue
Despite my previous caution against confusing relationship vs correlation, there is typically a direction relationship between the amount of website traffic you gain and the amount of advertising revenue you earn. If your traffic drops significantly and for a sustained period, so to will your revenue. If your traffic increases, so will your revenue.
This relationship should hold true regardless of whether your site runs ads or is monetized by some other means. However, the change in revenue may not be linearly proportional to the change in web traffic. You may not even be able to calculate the actual relationship because it’s likely to be changing on a daily basis.
Still, if you are running advertising, you may be able to estimate future traffic and earnings on a long-term basis, as I discussed previously, without knowing the direct earnings relationship on a day-to-day basis. If you are not running 3rd-party ads on your site, that’s much harder. The revenues from running ads for your own books/ workshops, etc., is easier to predict than, say, selling your consulting services. If you garner new contracts based on the writing that you do online, there is no easy way to find a mathematical relationship between the amount of traffic you are getting and the revenue from contracts.
This is primarily because the gaining of contracts in this case is not primarily a function of your web traffic, but rather a function of what you are writing, and its quality. Since there’s probably no formula for predicting the quantity of quality posts you will be writing, there’s no easy way to determine how much you’ll earn from contracts gained due to your writing. In other words, while there may be a correlation between traffic and the contracts gained, there is no direct relationship, for all intents and purposes.
The moral? If you’re relying on all income gained directly and indirectly due to your online writing, and if you have an obsessive need (like me) to predict what you will be earning, then indirect monetizing may not be for you. At least not if you exclude third-party ads, or ads for sales of your own offerings.
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