The Value of Untargeted Traffic

From: Shawn McInerney <shawn_at_moosemousemedia.com>
Date: Wed 05 Jul 2006 10:10:59 -0500

Hi,

I am researching starting a video website which shows short, humorous
videos. The content would be similar to that of YouTube, Grouper,
Newgrounds, etc. (but it would not be user generated content).

I plan to earn revenue through text-link advertising with ad serving
networks like Google Adsense and Adbrite. Unfortunately, so far it
seems that the bandwidth costs may be far greater than the ad revenue.
But I can_t be sure because I haven_t been able to determine a value
for this type of traffic.

So my first question is, "What is the value of this type of traffic in
CPM?"

I am in the initial research stage right now, so I am definitely not in
_try it and see_ mode. Prices I have found for advertising on similar
sites vary wildly from $7.00 CPM to $0.05 CPM. With CPM advertising, I
plan to put the same 10 ads on every page of my site (if this info is
helpful).

I am also trying to find out what click-through rates are for this type
of traffic. I_ve seen 0.1% click-through rates mentioned quite often
for untargeted traffic. But if I do some calculations using published
data from Adbrite_s website, it seems way lower.. like 0.005%. Adbrite
shows the average clicks per day and pageviews per day for each
publisher_s sites, so I am calculating like this:

    (Clicks per day)/(Pageviews per day) x 100 = Click through rate
(percentage)

Is this the standard way to calculate Click-through-rate? This
calculation assumes the ad will show on every page of the site, which
seems to be the way they are doing it on the sites I have used for
calculations. Do these numbers sound right?

Sorry for this lengthy post. Any insight is greatly appreciated!

Thanks,
Shawn

Shawn McInerney
MooseMouse Media, Inc.
http://www.MooseMouseMedia.com
Shawn_at_MooseMouseMedia.com
ph: +1 310 403 8495
fax: +1 310 496 0396






Received on Wed Jul 05 2006 - 10:10:59 CDT