Banner Ad Revenue Example
The below example is based on 15,000 users, which typically generates 800,000 banner
impressions. Click-thru ratios usually vary between .45% and 1% for non-targeted ads.
Targeted ads usually yield 2-4% click-thru rates.
|
Target |
Click-Thru Ratio |
Amount of Click-Thrus |
Revenue Generated |
|
Non-Targeted |
.45% | 3,600 @ $.60 each | $2,160 |
|
Non-Targeted |
1% | 8,000 @ $.60 each | $4,800 |
|
Targeted |
2% | 16,000 @ $.90 each | $12,800 |
Below is another example based on an advertising network using the CPM (Cost per thousand)
method, rather than per click-thru. The industry standard is bewteen $10-$15 per CPM.
|
CPM |
Impressions / 1,000 = 800 |
800 x CPM = |
Revenue Generated |
|
$10/CPM |
800,000 / 1,000 = 800 | 800 x $10 = | $8,000 |
|
$15/CPM |
800,000 / 1,000 = 800 | 800 x $15 = | $12,000 |