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Advertising Revenue Math - How much traffic is needed to generate $1M in ad revenue? It all depends on how well you can target your audience and how much you ca
by sabat 18y ago
Advertising Revenue Math - How much traffic is needed to generate $1M in ad revenue? It all depends on how well you can target your audience and how much you can charge for CPM rates. For social network sites let's assume an average CPM of $0.40. You would need 2.5 Billion page views per month to earn $1M in ad revenues. That is 2,500,000,000 page views...how many sites generate that traffic?
1- $1 million per what?
2- 2.5 billion page views -- if Facebook isn't doing that, it's pretty close. Is Facebook's cost of operation > $1 million per month? It shouldn't be. It shouldn't be anywhere near that. Therefore: profit. Where's the problem?
All booms eventually go bust.
Little booms do, but big "booms" last longer, at least, if not forever. For example, that little boom they call telephony. Or the personal computer. Or this whole internet thing.
- jonknee 18y agoFacebook's definitely spending more than $1m a month. Way more. They have over 500 employees. Do the math, at $1m/mo and only factoring in staff costs everyone would have to be making 24k a year without any benefits. I would say $10m/mo is a conservative estimate.