Re: Generating income via ads

From: Leoncini Xavier <xavier_at_nycircus.com>
Date: Fri 12 Jan 2001 13:00:37 -0500

MICHAEL MARTINEZ <Michael_at_xenite.org> WROTE:
> Maybe this is a good time to open a dialogue on this
> list for establishing some guidelines. How about
> the following table. What do people here think?
>
> In terms of page views per month:
>
> 100,000 $5 CPM
> 250,000 $10 CPM
> 500,000 $15 CPM
> 750,000 $20 CPM
> 1,000,000 $30 CPM
> 2,000,000 $50 CPM
> 3,000,000 $75 CPM<

TO WHICH MATT MICKIEWICZ <matt_at_sitepoint.com> REPLIED:
> Why would the CPM rates increase as the number of page
> views a site receives increases? Does the fact that
> you're buying 10,000 ad views out of 100,000 vs. 10,000
> ad views out of 3,000,000 justify a $50 vs. $750
> expenditure? In either case you're getting the same
> exposure.

I do not know if it is relevant, but a definite
advantage of higher traffic is that beyond visibility
(reach) it also allows to generate better statistics,
for further analysis such as click through rates. For
instance assuming everything is perfectly random, the
accuracy of the number becomes of order
1/squarerootof(traffic), which gives about 0.1% for
1000 000 impressions. For rates that are close to 0, a
better accuracy allows to differenciate between noise
and real impact, and therefore since it provides more
information it should be more expensive. Note also that
for this process to be considered random, it is
important that all the traffic occurs in a shorter
time, to avoid possible memory effects.

Xavier Leoncini
xavier_at_nycircus.com
http://www.nycircus.com
NYCircus.com: NYC Lifestyles





Received on Fri Jan 12 2001 - 12:00:37 CST