ONLINE-ADS>> The math just doesn't work...Or does it?

richard_at_tenagra.com
Fri, 22 May 1998 07:01:53 -0500 (CDT)

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Hey all,

i ran across a rather good article by Rick Bruner, a regular contributor to
this list, about how much revenue a site could realistically raise through
banner advertising. Here is Rick's math. Quote:

"If a site is selling 1 million ad impressions per month for
a $20 cost per thousand, how much revenue does it stand to
earn? Answer: $20,000 a month, or $240,000 a year.

It doesn't take an MBA to realize that's not very much to
run a serious business on. Take 30-40% off the top for your
ad rep firm, or $100,000+ a year salary for a hot-shot
in-house ad saleman. Then subtract the costs of editors,
programmers, software, Web hosting, marketing, and so on.
What are you left with? Red ink."

The full article is at:

http://www.x-summary.com/trends/051998.html

So is there a way to make web publishing viable strictly through advertising?

One obvious answer to me is get your content produced for you at little
cost, like what Andy Bourland at ClickZ has achieved. He's got great
content produced by knowledgable people who aren't looking for cash, but
for fame.

Another one is to go niche. The narrower your subject, the less content you
have to produce. This is why I think major publishing efforts online are
doomed to failure unless they diversify their revenue bases.

Any other ideas?

richard

--------------------------------------------------------
richard hoy
moderator, online advertising discussion list
vice president, marketing and client promotions
the tenagra corporation
http://www.tenagra.com/
p: 281.480.6300 | f: 281.480.7715 | e: rhoy_at_tenagra.com
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