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Q: Calculating incomes from advertising for an online business ( No Answer,   2 Comments )
Question  
Subject: Calculating incomes from advertising for an online business
Category: Business and Money > eCommerce
Asked by: joe101-ga
List Price: $30.00
Posted: 27 Oct 2005 10:20 PDT
Expires: 02 Nov 2005 13:15 PST
Question ID: 585692
I am gathering financial info for a business plan and I am trying to
estimate the incomes.
This is going to be a web portal that will provide information.
The main sources of incomes are advertising and affiliates.
I know that the income from advertising depends on many factors as:
1. Amount of traffic.
2. Type of advertisement (banner, popup?).
3. The ability to target the campaigns.
4. Type of visitors ( youth, old people?).

I know that I cannot ask for specific number but I would expect to get
an answer that will help me to estimate  the incomes from advertisement.
For example:
Traffic of 100000 unique visitors would generate btw X-Z $ monthly (depends on ?)

There would be ?gentle? advertisement in the site. I mean that the
site it?s not going to be covered with banners.

I will provide an extra of 15$ if I will get a good answer on how to
estimate the incomes from affiliates.

Feel free to ask me clarifications.

Tnx
Answer  
There is no answer at this time.

Comments  
Subject: Re: Calculating incomes from advertising for an online business
From: respree-ga on 28 Oct 2005 22:01 PDT
 
The one key factor missing with your assumptions is conversion rates.

How do you estimate that?  You 'could' ask for an industry average
(which I don't have, incidentally), but 'your' site could easily be
much higher or much lower than those averages.  It really depends on
your sites ability to convert, retain and attract visitors.

To illustrate my point, I've been on this site for half an hour now,
just putzing around.  I'm not a researcher, but I find being here both
entertaining and educational.  You'll notice there are ads running on
this page.  The fact that I've been here for an extended period of
time indicates its probably got an above average conversion rate.

Now, let's 'pretend' the site only had four questions on it.  Not much
to see.  Not a great site.  Nothing to ready.  I'm gone.  Conversion
rate would, in this hypothetical scenario, be zero.

Between the two scenarios above, if traffic were equal, an estimation
of the estimated income would be drastically different.

Sorry, but the question is impossible to answer with any degree of
accuracy without your assessment of what that conversion rate would
be.  After that, the math is easy.=)
Subject: Re: Calculating incomes from advertising for an online business
From: pablov-ga on 30 Oct 2005 00:25 PDT
 
I will stick to the industry average conversion rate -  around 1.5%

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