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Expectation for ad efectivness

by nuliknol
10 replies
Hi,
I am working on a business plan for a directory like web portal for a particular industry, and I need to do the projection of income. My question is, what is the common rate of pageviews/income? For example , is there some general formula like "if you get 10,000 pageviews you will be paid 2 dollars" from advertising???

TIA
Nulik
#efectivness #expectation
  • Profile picture of the author JohnMcCabe
    If you're looking for CPM rates (revenue per 1000 ad exposures), contact several of the ad networks and get their bids. You'll have more accurate data than anyone here can give you based on the info provided.

    You might also see what similar industry portals charge for ads and extrapolate from there.

    If you're seeking funding, you'll need more justification for your projections than "a guy on a forum told me."

    Good luck with your venture...
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    • Profile picture of the author nuliknol
      Originally Posted by JohnMcCabe View Post

      If you're looking for CPM rates (revenue per 1000 ad exposures), contact several of the ad networks and get their bids. You'll have more accurate data than anyone here can give you based on the info provided.

      You might also see what similar industry portals charge for ads and extrapolate from there.

      If you're seeking funding, you'll need more justification for your projections than "a guy on a forum told me."

      Good luck with your venture...
      This is actually a FAQ:
      Let me google that for you

      I wonder what kind of people sits in this forum that they can't give a newbie a precise answer. time to start looking for another community.
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      • Profile picture of the author onSubie
        Originally Posted by nuliknol View Post

        This is actually a FAQ:
        Let me google that for you

        I wonder what kind of people sits in this forum that they can't give a newbie a precise answer. time to start looking for another community.

        Wow. Over 3 Million results. So much for a precise answer.


        There is no way to precisely calculate what you are asking. As your Google search shows nobody knows the answer. They are all based on wild assumptions that have no basis in reality.

        I looked at several articles in the results. All of them based their estimate on Search Network CPC. If you run an AdSense site your pay is based on the Content Network Rates not the Search Network Rates so all the calculations I saw were wrong just based on this.

        All estimates were based on keyword CPC values from the keywords targeted by the website. But none factored in that most traffic will get unrelated ads based on retargeting from their surfing history. With the advent of social networking, most people are seeing custom ad campaigns based on their browsing history and not the keywords targeted by the sites they they visit.

        None of the estimates I saw (I only checked a few of the SERPs results) accounted for ad blocking software and the impact on ad pay. No insight into which niches are more likely to use ad blockers and no estimate of their impact on revenue.

        I wonder what kind of newbie shows up in a forum displays complete ignorance on the topic they are discussing and then insults well known members hoping to get better responses?
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        • Profile picture of the author luketr
          What you can earn per M, page view, click, lead etc etc is totally dependent on your industry.

          A lead to my law firm client who has an average customer lifetime value of $2K can afford to pay me much more than my client selling transport at $65 with little chance of repeat business (just the nature of the industry). I'm selling them both the exact same thing, just at wildly difference prices.

          What you need to do is work out what your lead is worth to your industry. If you aren't generating "hot" leads but rather only offering click through rather than leads, you'll need to dial down your price to allow for those which don't convert.
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  • Profile picture of the author PopeMarketing
    As John has said, your best bet would be to reach out to some of the ad platforms that you'd potentially be able to work with.

    I'd start with Sitescout.
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  • Profile picture of the author Engineer2Blogger
    No such thing as the niche varies greatly. I have a site that makes me 3k/m with only 200 views/day.

    I don't do adsense, that stuff pays you peanuts!
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    • Profile picture of the author dburk
      Hi Nulik,

      You are making an assumption that all pageviews are of the same relative value, they are not. The value of a pageview varies a great deal based on your targeted audience.

      You are also assuming that all industry niches have the same relative value, they do not. Advertisers are not wiling to pay the same for every niche, in fact most advertisers adjust their bids on a site-by-site basis, and in some cases on a page-by-page basis.

      To get anywhere close to an estimate you need to nail down as many variables as possible, otherwise any number you come up with is just a wild guess. Even with all those variables in place it is still very imprecise because of the enormous number of variables.

      This forum has many types of members, but the real marketers among us do not try to make such theoretical estimates. Real marketers setup tests, gather data and make data driven decisions. Trying to use aggregate data is nearly worthless, using aggregate data from unrelated websites is completely useless. You can look at aggregate data from other websites, but it has little or nothing to do with what you might expect on your own website.
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      • Profile picture of the author nuliknol
        Originally Posted by dburk View Post

        Hi Nulik,

        You are making an assumption that all pageviews are of the same relative value, they are not. The value of a pageview varies a great deal based on your targeted audience..
        Thanks!
        Of course I know this, but I just wanted to know the average rule. The mean, and the standard deviation, you know, the statistics.
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        • Profile picture of the author NomadLifestyle
          Not only does it depend on your niche, but it also depends on the ad display type.

          For example, are you planning on running Google AdSense? If so, there are different levels within even the Google display network which allows you different payment options.

          Perhaps you want to sell the ads direct to advertisers. That's a whole another ballgame altogether. You could use buy sell ads.com to get a general idea of what other people are charging in your industry for the same CPM etc.

          Additionally, CPM is rarely, if ever, static.

          For example, CPM may be higher or lower in the winter months depending on your niche or the summer months (if you tend to sell outdoor gear/etc.).

          Point is, guesstimating CPM is nearly impossible.

          If you want to ensure that your website makes money, create a product that solves a pain point in your industry. Otherwise, be prepared to have fluctuating income.
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