Michael Campbell has just released a VERY useful 27-page ebook on how to advertise online effectively called, “How to write effective PPC, CPA, CPM Advertising and Profit Like Crazy“.

Not only does Michael go through the basics of advertising psychology, he gives you example ads along with statistics on which ones got the most clicks/sales and why. The ebook is geared towards Michael’s attempts to generate sales using banners ads targetted at the dating niche, but the underlying principles are timeless and apply to all advertising.

Oh, and it’s a totally free download. No opt-in, no squeeze, no upsells, no OTO, just great content.

OK, so my test of Kontera Ads showed rather quickly that their earnings were poor in comparison to Google Adsense but I stuck with it because I wanted to run a long test to be statistically sure that my results were accurate. We also had Vered from Kontera comment at the blog post and say that they had tweaked my account settings to optimize the earnings. After that, I felt it was only fair to give the ads an extended run to see if the earnings improved.

They didn’t.

The harsh reality is that the Kontera eCPM (earnings per thousand page impressions) was under four bucks. I’ve now qualified for their minimum payout ($100) so I’ll be removing the Kontera ads and testing my own brand-new method of advertising. I expect it to massively improve site earnings…

(note: I ran Kontera ads at the same time as Adsense during my test. The Adsense earnings fell by about the same amount the Kontera ads earned. I don’t know what Kontera ads alone would have earned.)

… if it was ever really alive.

You know the main problem of advertising online? People hate ads.

Way back in Internet history there were banners… especially run-of site banners, which advertisers bought per thousand impressions. I think advertisers were paying up to $30 CPM for run-of-site banners. I remember selling some to Entrepreneur Magazine… although I don’t remember how much I charged them.

After a while, banners were “tuned out” by site visitors, clickthrough rates nose-dived and the cost per thousand impressions fell through the floor.

What did advertisers do?

They started to pay Goto.com (now part of Yahoo) per click… and the Pay Per Click industry was born. Google took this form of advertising to new heights with their Adwords/Adsense system… and very clever it is too.

But the fact remains that people don’t like advertising. Take a simple example… what do you do when you’re watching a movie and the ads are shown? You head to the kitchen for a snack or drink, right?

Advertisers got wise to that trick, so they decided to “sponsor” a movie and have a little mini-ad before and after the movie segments. I guess you’re more likely to see it because you haven’t yet left for the kitchen, or have just got back from it to see the next movie segment. Also, the message isn’t, “buy our stuff”, it’s more, “we’re good guys sponsoring the movie you’re enjoying”. So it’s more of a soft-sell.

Take that message online and it doesn’t really work. How can you make an interstitial page into a “soft sell”? Apart from closely targetting it to the page the visitor last saw, and the page they’ll see next, there isn’t much you can do. It’s still an ad.

So are Adwords/Adsense ads being “tuned out” like banners were?

Are website visitors rebelling against advertising in general?

According to the Telegraph, the huge “Web 2.0″ properties are struggling to turn huge numbers of site users into cash. Apparently, “Mark Zuckerberg apologised to Facebook users for the “bad job” his company made of implementing Beacon, a controversial new advertising system that exploits the power of ‘word of mouth’ marketing.”

Oh dear.

The problem, for Facebook, is that they have huge numbers of competitors… and those competitors will be quite happy to undercut whatever revenues Facebook generates… and Web 2.0 users will be quite happy to go to whatever Web 2.0 website that offers the least advertising.

So we’re left with a dilemma which has existed since the Internet was born… if people are free to decided which websites they want to visit, and there’s intense competition for website visitors, can website owners afford to put advertising on their websites? On the other hand, can they afford NOT to?