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  1. #1
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    why huge difference in ad revenues

    I am pretty new to advertising (just adding google cpc to my site), and I keep seeing random figures bounded around, so I have no idea what the standard figures are for a web publsher - please help!

    Please note, I am not expecting to turn a gatesian profit with this thing, but a few here and there wouldnt go amiss, and sometimes I feel like I dont have a reference point for what people are making in terms of ads from their sites, be it cpc, cpm, or cpa...I understand context places a part but I refuse to believe that the spectrum stretches from $0.00001cpm to $25cpm which is what it feels like at times...

    ====CPM====
    example:
    some agencies offer $3CPM, but only per unique impression, which I understand...say you could get 1,000 visitors per day, and that would total $3, irrespective of how many ad views each got.

    I think I am correct up to this point?

    I see some sites offering their page views for much lower - do these sites not get accepted onto the agencies, or is there some hidden factor I am failing to see.

    One site I saw today was selling 1mill impressions for $3cpm. Granted it was a forum - http://www.audiocourses.com - but why the huuuuuge differential. Site traffic? Some agencies are poor, some arent? Some sectors are oversubscribed, some under? Forums offer low cpm, I know, but....


    ===CPC=====
    Ditto, cpc is as much a nightmare for me to understand lol!

    I had assumed it was pretty much this: (please correct me if I am wrong at any point lol)

    industry average: 0.5-3% ctr, so for every 100 google ad modules you display you will get 0.5-3 clicks, depending on your site and its visitors.

    Lets say you get 10,000 page views per day, each displaying one module of google-ads, and assume a ctr of 1% and a click average of $0.1.

    10,000views x 0.01ctr x$0.1per click =$10 total owed for that day.

    please can someone review the above, and tell me if I am wrong anywhere. Does the `ctr` refer to clicks per ad displayed or clicks per visitor?

    Why the huge differential between $cpm I see floating around, and what are the real figures for cpc.

    Is there really no average, and if what explains the spread.

    Anyone who has the patience to have read this far will no doubt have been blessed with the patience to have found out the answers to the above questions and the virtue to add them here.

    Apologies for the rant, and I hope you can help

    Thanks *exhales*...

    Chris

  2. #2
    SitePoint Wizard masm50's Avatar
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    I would never bother with ads that only pay $0.00001cpm
    Every network I have ever used has alays been higher than that, in fact the lowest I have seen is about $0.08 CPM (and I dropped them pretty quickly).

    There is massive variation between CPM for various sites and for a number of reasons.
    Financial sites for example give a higher CPM than a flash games site on average as the people looking at the site (and therefore seeing the ads) are a demographic more likely to have more disposable income - which is what advertisers are after.
    Advertisers are also more after USA and western European traffic than other parts of the world - so if you have a site aimed at americans, you would do better than one on the same topic designed for China for example.

    Do note though, that ad networks in general for RON ads range anywhere between $0.10 and $2 eCPM in most cases.
    You only realy get ads worth any more than that on targetted campaigns, which some networks (such as Burst or Tribal Fusion) get for you sometimes, but more often than not you will have to find/sell to these advertisers yourself.

    Then it is a simple supply and demand equation - if you have more people wanting to buy your ad inventory than you have inventory, you can put your prices up.

    Hope that helps explain it somewhat

    (By the way - I'm guessing the $0.00001 CPM you quoted was actually how much you would be paid per page view - which would make it (0.00001 X 1000) $0.01 CPM - which is still too low but so so ridiculous.)

    Tim

  3. #3
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    Quote Originally Posted by masm50
    I would never bother with ads that only pay $0.00001cpm
    Every network I have ever used has alays been higher than that, in fact the lowest I have seen is about $0.08 CPM (and I dropped them pretty quickly).

    There is massive variation between CPM for various sites and for a number of reasons.
    Financial sites for example give a higher CPM than a flash games site on average as the people looking at the site (and therefore seeing the ads) are a demographic more likely to have more disposable income - which is what advertisers are after.
    Advertisers are also more after USA and western European traffic than other parts of the world - so if you have a site aimed at americans, you would do better than one on the same topic designed for China for example.

    Do note though, that ad networks in general for RON ads range anywhere between $0.10 and $2 eCPM in most cases.
    You only realy get ads worth any more than that on targetted campaigns, which some networks (such as Burst or Tribal Fusion) get for you sometimes, but more often than not you will have to find/sell to these advertisers yourself.

    Then it is a simple supply and demand equation - if you have more people wanting to buy your ad inventory than you have inventory, you can put your prices up.

    Hope that helps explain it somewhat

    (By the way - I'm guessing the $0.00001 CPM you quoted was actually how much you would be paid per page view - which would make it (0.00001 X 1000) $0.01 CPM - which is still too low but so so ridiculous.)

    Tim
    thanks a lot tim, i understand it better now. The 0.000001 is a figure I just typed out, I havent seen that one quite yet lol

    Just so I do understand a CPM of 0.1 to $2 is reasonable, and that refers to ad views, not uniques? - so
    1000 visitors x 10 page views each = 10,000 page views. Say a CPM of $0.50 means you make 0.5 x 10 = $5. Am I right?

    also, I would be hugely indebted if someone could answer my unintelligable questions re: CPC figures and industry standards lol

    Thanks again Tim, any more clarification on my blurb is appreciated

    Chris

  4. #4
    SitePoint Wizard Lil_Red's Avatar
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    Quote Originally Posted by captainequity
    thanks a lot tim, i understand it better now. The 0.000001 is a figure I just typed out, I havent seen that one quite yet lol

    Just so I do understand a CPM of 0.1 to $2 is reasonable, and that refers to ad views, not uniques? - so
    1000 visitors x 10 page views each = 10,000 page views. Say a CPM of $0.50 means you make 0.5 x 10 = $5. Am I right?

    also, I would be hugely indebted if someone could answer my unintelligable questions re: CPC figures and industry standards lol

    Thanks again Tim, any more clarification on my blurb is appreciated

    Chris
    That's assuming that you did not serve any defaults and only showed paying ads. In reality, CPM ad networks might only fill 10% of those page views so you might only make $.50 rather than $5.

  5. #5
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    Quote Originally Posted by Lil_Red
    That's assuming that you did not serve any defaults and only showed paying ads. In reality, CPM ad networks might only fill 10% of those page views so you might only make $.50 rather than $5.
    thanks red.

    i assume a default is when there are no fresh banners to serve, so the agency fills the space with a non/low paying banner?

    OK, how much of a might is that - is that a huge might depending on agency, and is unfilled inventory a large influencing factor in determining cpm?

    again, anyone who can add to this thread will be appreciated most definitely

    cheers red

    chris

  6. #6
    SitePoint Wizard Lil_Red's Avatar
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    It really depends on the ad network. For example, Adtegrity has a 100% fill rate but the tradeoff is they tend to have very low CPM. Another network like Burst might only fill 10% of your inventory but have a much higher CPM.

  7. #7
    Serial Publisher silver trophy aspen's Avatar
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    Generally people daisy chain networks together so that defaults from one pull up paying ones from another.

    For instance my top banners go TribalFusion - Burst - Casale - Fastclick - Adsense
    Chris Beasley - I publish content and ecommerce sites.
    Featured Article: Free Comprehensive SEO Guide
    My Guide to Building a Successful Website
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  8. #8
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    thats great, thanks so its legal to `daisychain`, when these guys say u cant refresh banners they mean reloading it to up impressions, not one per user, one agency to the next...sounds like an easy enough way to get around inventory issue?...but then it would make sense that the highest cpms are the hardest to fill...lol sods law even here on the web

    thanks a lot guys

    no-ones commented on cpc yet lol...

  9. #9
    Serial Publisher silver trophy aspen's Avatar
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    CPC is the cost per click, its pretty straightforward.

    If you're making $.10 CPC and 10/1000 click on the ad then thats called an effective CPM of $1. People say effective CPM because it is not an actual CPM since it is a CPC based advertisement. When deciding what ads you're going to display you typically compare CPM ads with the effective CPM you could get with CPC ads to see which pays more.

    Click Through Rate is clicks per impression.
    Chris Beasley - I publish content and ecommerce sites.
    Featured Article: Free Comprehensive SEO Guide
    My Guide to Building a Successful Website
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  10. #10
    Jeremy Maddock WealthStream's Avatar
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    Your clickthrough rate with CPC ads greatly depends on the quality of your traffic, and how targeted your ads are to your website. It's always a good idea to optimize your webpages so that contextual CPC programs (such as Adsense) can really show the most highly targeted ads.

    The amount of money you get for each click will vary greatly on a day to day basis, as it depends on how much advertisers are bidding on your keywords. You have no control over these values, so don't get too worried when they go up and down a lot. Just keep sending clicks, and your earnings will steady out in the long term.
    -- Jeremy Maddock
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    My Blog - Business, tech, and politics from a webmaster's perspective

  11. #11
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    OK, I think Im starting to understand it a lot better lol

    thanks guys

    chris


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