Question

Calculate revenue (CPM) from page impressions.

Asked by: rohgan

Lets say I get 5,00,000 page views. Fast click pays 720x90 leaderboard banner == $2 CPM= $1.24 eCPM.

How much does it mean in revenue? A typical page has 2 -3 banners. Help me understand.

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Asked On
2005-08-23 at 08:35:52ID21536931
Tags

calculate

,

cpm

,

revenue

,

how

Topic

Internet Marketing

Participating Experts
2
Points
500
Comments
10

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Answers

 

by: rohganPosted on 2005-08-23 at 09:22:25ID: 14735090

Do eCPM rates fall for multiple banners on same page?

 

by: VoltecPosted on 2005-08-23 at 10:24:43ID: 14735673

CPM is easily to calculate... you just muliple the CPM * the number of thousands of pages.  If the number you have above is 500,000 then 500 * 1.24 = $620 revenue for ONE banner.  If the number above is 5,000,000 then you would muliply 5000 * 1.24 for $6200 revenue.  Multiply the total by the total number of banners if the CPM rate is the same reguardless of the # of banners, size...  If they are different, then you calculate one, write it down then calculate the 2nd at that banners' rate and add it.

NOTE: They could also be talking about CPM of UNIQUE visitors - aka, if you have 5,000,000 visitors monthly but they are only counting each IP once each 24 hours - if each person views 10 pages per day on average, then we are talking 1/10 of the higher amount, or back to $620...  Many advertisers only pay per Unique visitor so check over the language carefully before you order that new BMW...  (=

Good luck!
Matt

 

by: duzPosted on 2005-08-23 at 10:28:27ID: 14735703

rohgan -

>How much does it mean in revenue?

ecpm x page views x .001 = 500,000 x 1.24 x .001 = 620

>A typical page has 2 -3 banners.

Fastclick allow one 468x60/728x90 Banner and one 120x600 Skyscraper per page as far as I know.

- duz

 

by: rohganPosted on 2005-08-23 at 10:54:00ID: 14735936

thanks ..do you knw if it is per page impression or has a restriction of unique visitor page impression on fast click?

Also when they say typical CTR is 1% is that 1% of page impressions? or 1 % of unique visitors?

 

by: VoltecPosted on 2005-08-23 at 11:08:58ID: 14736063

If you are calculating CPM based on 'typical CTR' be aware that 'typical CTR' varies from site to site... aka, there is no typical CTR.  You can be higher than average or very much below their average.  Only true CPM is something that you can accurately calculate anticipated revenue - and even that often falls short due to their count somehow being lower than yours...

I can't say what their metric actually is 1% of - uniques or page impressions...

 

by: VoltecPosted on 2005-08-27 at 03:00:03ID: 14767340

Has your question been answered, or do you have additional questions?

 

by: rohganPosted on 2005-08-27 at 21:44:20ID: 14770028

Hi Voltec you have answered my question mostly. However I am still unsure.

How much do you think can be made from  5,00,000 page views by joining a typical advertising program.Lets say webalizer shows 5000 unique visitors per day generateing 5,00,000 page views per month. I am not sure how banner programs pay and your help will go a long way.

 

by: VoltecPosted on 2005-08-28 at 00:23:22ID: 14770288

Honestly I can't say because it varies too much - from advertiser to advertiser, from website to website and absolutely the combination of the two.  Making matters worse is the changing conditions - meaning what was the norm 6 months ago doesn't mean it is going to be the norm now.  

The only way to tell?  Trial and error.  Try one offer - find out if it works for you but at the same time always be on the lookout for others.  If one works really well... stop looking.  (but always be ready to start again, because even great advertisering firms fail sometimes - or a change in policy could dramatically drop your revenue).  

When you try a new site, don't give them all of your space, use a script that will rotate the different services and give them a portion of it... you will see what works and what doesn't.  Give the higher percentage to what is working for you.  (Another great thing about rotating different advertising programs is that many only give you credit for each IP per 24 hours... so rotating to a second gives you credit for two different programs with the same user if they go to a second page.  I used cookies for this.  The first banner program displayed was my highest average CPM, the second banner was the second highest...  At one time I was pushing 110-150,000 pages daily to 30,000 uniques a day so I had 4-5 different programs running at once.

The short answer - experiment...  (=

Hope this helps,
Matt

 

by: rohganPosted on 2005-08-28 at 09:06:46ID: 14771565

Hi Matt, I m accepting your answer. Thanks for all the help. The big thing is I know estimates may be 20%-90% off the real results, but still how much can one estimate for 5,00,000 page views by joining a typical advertising program. Lets say webalizer shows 5000 unique visitors per day generateing 5,00,000 page views per month.

Any estimate will help. Hoping to hear back.

 

by: VoltecPosted on 2005-08-28 at 21:34:47ID: 14773945

Post your URL or put it in your profile so I can see what your website deals with... also, just wanting to make sure because you write your number differently than I am used to seeing... we are talking 500000 pages monthly (1/2 a million not 5 million) correct?  Do you have any idea of your demographics (median age, male vs females, median income level...)?  Have you applied for and been approved by fastclick or other advertising groups?

20120131-EE-VQP-002

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