Online advertising revenue is one of many income sources for small business websites. Depending on the business model that you choose internet ads can become your major source of revenue. You can rent some spaces on your website to advertisers — directly or through an affiliate network — if you have significant targeted traffic.

Affiliate programs are one popular form of internet advertising revenue sources. Here advertisers conduct their marketing campaigns directly through affiliates or indirectly through an affiliate network. The affiliates direct traffic to the advertisers’ websites and get rewards based on a measurable campaign result such as a sale or a sign up.

Online Advertising Revenue Models

There are different advertising revenue models on the net. Each of the models requires your website visitors to either click on an ad or do a desired action. To generate most revenue you’ll need to find a model that is more appealing to your target audience. Here are some of the models and their payment schemes:

1. Pay Per Impression. Advertisers measure the cost for showing an ad message to one thousand viewers (Cost per Mille or Cost per Thousand). They pay you for the exposure — impressions — of the ad message to your target audience.

2. Pay Per Click. An advertiser pays an advertising broker or you each time a visitor clicks their ad message (Cost per Click). They don’t pay their host — the broker or you — for the listing. They only pay when your visitor clicks on their ad message and is redirected to their website.

3. Pay Per Action. An advertiser only pays for their ad message a visitor has performed a desired action (Cost per Action) — such as, a purchase or a form submission. This is a pay-for-performance model where the advertiser doesn’t pay anything if their ad doesn’t get results.

Generating Online Advertising Revenue

Promoting affiliate programs are one of the best online revenue sources. If your website reviews a certain product, simply join Commission Junction and apply for an advertiser that sells the product. Just direct targeted traffic to your advertiser’s website and convert them into paying customers. Or you can generate leads for your advertiser, if the program requires you to do so.

Another popular form of online advertisements is contextual ad. A contextual advertising network like Google Adsense allows your site to display ads that are relevant to your content page and fit the behavior of individual visitor. When a visitor finds your web page they’ll view the ad messages and are following the link to your sponsor’s website.

While there are many other online advertising revenue sources but the two suggestions above are a good start. Try them out and promote one model or two that best suits the needs of your target audience. Once you find ad revenue sources that work drive more traffic to the programs that make money.