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



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