If you're thinking about starting a website or app with the dream of making money purely through ads, you're not alone. It’s a common goal for many developers, bloggers, and entrepreneurs. But in 2025, the reality of ad revenue isn’t what it used to be.

Let’s take Michael, a hypothetical entrepreneur, as an example. He recently launched a website offering unique content and engaging user experience. He’s passionate about his niche, so naturally, he decides to monetize his site through ads.

On paper, Michael’s path to success looks simple: create engaging content, drive traffic, place ads, and rake in revenue. Unfortunately, things don't go as smoothly as he hoped. Here's why.

The Struggle to Attract Users

Michael’s biggest hurdle is attracting enough quality users to his site. With millions of websites and apps competing for attention, standing out in the crowded digital landscape has become incredibly difficult. Even though Michael has worked hard on creating a visually appealing site with valuable content, traffic is trickling in rather than pouring.

In the past, building a website or app could attract organic traffic through social media, word of mouth, or even just ranking well in Google. But now, that’s no longer the case. It’s not enough to simply create great content.

Because:

• **Search Engine Algorithms**: Google’s algorithms are now smarter than ever, favoring established sites with proven authority, making it harder for newcomers like Michael to break through.
• **Paid Ads Competition**: Everyone from small businesses to global corporations are using Google Ads, Facebook Ads, and others to funnel traffic to their own properties, creating intense competition for the limited attention of users.
• **Social Media Algorithms**: Platforms like Instagram, TikTok, and Facebook have made it harder for organic posts to reach users without paying for ads. Even if Michael shares his content on these platforms, he faces the uphill battle of low organic reach.

The Challenge of Retaining Users

Even if Michael manages to draw users to his website, getting them to stay and return is a different struggle. User retention is a critical factor for success in ad-driven models. If users don’t return, there are fewer opportunities for them to engage with ads. Michael might be seeing a spike in traffic, but if most users leave after viewing one page, his revenue potential is severely limited.

The ad revenue model relies heavily on user engagement—impressions, clicks, and session length. But people are becoming increasingly ad-averse. With the rise of ad blockers and users who have learned to ignore banners, the effectiveness of traditional ads is fading. Moreover, ads disrupt the user experience, making some visitors abandon sites entirely.

Ad Revenue Isn't as Lucrative as Before

Even if Michael’s site begins attracting and retaining users, the question still remains: How much can he actually earn?

In the past, a site could generate significant revenue with ads. However, with the sheer volume of websites out there, ad rates have dropped. Michael quickly realizes that while traffic may be growing, ad impressions and clicks are not converting into substantial earnings. The eCPM (Effective Cost Per Mille) rate is lower than expected, especially for sites in niche categories or with lower user engagement.

This has been exacerbated by the fact that many of the ad networks, like AdSense and AdMob, prioritize larger websites with more traffic and higher-quality engagement. As a smaller player, Michael finds it hard to compete for the higher-paying ad spots that come with premium rates.

How Michael Can Turn It Around (If He Chooses)

After some reflection, Michael realizes that making money from ads alone is more challenging than he ever imagined. But does that mean it’s impossible? Not exactly. With the right strategy, it's still possible to generate revenue from ads, but it's harder than before and requires more effort and creativity.

Here’s how Michael can improve his situation:

• Focus on Niche Content: Instead of targeting broad audiences, Michael could focus on a niche where demand is high but competition is lower. By offering highly-targeted content, he might be able to attract users who are willing to engage more with the ads presented.
• Diversify Traffic Sources: Michael could use paid ads to boost initial traffic or use collaborations with influencers or other sites to drive organic traffic. But he’ll also need to invest in SEO over time to build long-term, sustainable traffic.
• Use Alternative Monetization: While this post focuses solely on ad revenue, Michael should at least consider diversifying his revenue streams—through premium subscriptions, donations, or selling digital products.
• Optimize User Experience: Michael can enhance his site’s layout and usability to increase the time users spend on his site. The longer users stay, the more likely they are to interact with ads, boosting his earnings.
• Ad Placement and Mediation: Michael can experiment with ad placements that blend seamlessly into the user experience and test mediation to maximize ad earnings across different networks.

In conclusion, building a profitable website or app with ads is not as simple as it once was. It takes time to build traffic, keep users engaged, and optimize ad placements. It’s no longer enough to just put up some content and add a few banner ads. To succeed, you’ll need a comprehensive strategy that focuses on long-term growth, quality traffic, and an optimized user experience.

For Michael, the key will be staying persistent, diversifying his traffic sources, and focusing on delivering exceptional value to his users. The ad revenue path may be harder, but it’s still possible if done right.