I am looking for a very basic way to estimate revenue from ads. I do know there are a lot of variables involved - and I want to account for those eventually - but right now I am concerned with just the basics.
For example, for every 1000 unique hits a website gets, how would you calculate ad revenue?
I know that this depends on the type of site considered, and the ad service considered, and many other variables. But what is an average click through rate, and an average price per click that I might expect per 1000 unique visitors?
I’m interested in variables to consider but I am willing to work with basic conservative estimates for now. I will make the analysis a bit more realistic and far more complicated later. Please explain your estimate as well. Multiple points of view are welcomed. Again, I note that this is complicated, but I am trying to start small and conservative and work my way toward a more accurate analysis.
No, I don’t. I am making these estimates based on a potential site’s overall revenue. I am wondering if ads would be a worthwhile income stream in addition to other means.
I would say that a lot depends on your niche and the quality of your traffic. The thing is that some sites get thousands of visitors, but they stay less than a couple of seconds on the site and the bounce rate is very high, so this traffic is really low quality and they hardly convert. Other sites get a couple of hundreds visitors per day, but they are targeted visitors who stay long enough on the site, browse 5+ pages, they click on banners and ads and there are good chances that they will convert. If you do analytics for your websites you should know these things, so please pay attention to this fact when you estimate your potential CPM price.
That’s good information, and I would make use of it, but I haven’t managed a website in years, so I don’t have access to this data. Unfortunately, this estimate is for an entirely new site. I was wondering if I could somehow gain insight from the sites that will likely be in the same niche, but I haven’t found a way to do this, short of seeing their own analytics, which is not possible.
Simply, Calculate based on CTR per 100 page views or impressions which gives almost the cost of per Ad unit. Other way, just calculate based on cost per 1000 impressions and don’t bother CTR.