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Average Website Advertising Revenue

These online advertising pay-per-click numbers can not be right….?

Ok so say you have a big social network website, which we’ll say gets a measly 20,000,000 hits per day. (sites like digg.com get something like 800,000,000) and only .07% of those views are going to click on an ad (i think .7% is the avergae), and you only get 5 cents per click (pretty much industry minimum).

that means:

20,000,000 x .07 x .05 = $70,000

youre still making $70,000 a day, or about $25 million a year..

now think what sites like digg would make with average rates and higher click revenues?

there has to be something wrong with my numbers….?

iryhmebetter, I think you are definitely on the right track.

Check the decimal on the CTR muliplier: .7% = .007

20,000,000 * .007 * .05 = $7,000

Besides that, the way you are arriving at the final $ looks right to me.

Just an added confirmaiton, my CTR is in line with your estimates, 0.786% and while I can’t exactly disclose my exact RPC, I agree 5 cents is a good (albeit conservative) amt as well.

Either way…. not bad at all to have $2.5 MM on the books.

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