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by corin_
5586 days ago
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It really depends on the audience as to how much you can sell adverts for (and, of course, on how good you are at selling those adverts). It isn't at all impossible to get $10-$20 CPM for basic standard banner adverts, then you can charge higher rates for, as an example, video pre-roll adverts, and you can work on bespoke marketing campaigns to complement banner advertising, which again can provide higher profit margins. The above is from personal experience. For example, the company I've been with for the past few years (essentially since they decided to expand away from being a single website) manages to employ a handful more staff than Reddit on 20m monthly page views. |
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If your ad space will be profitable for the advertiser, become your own advertiser. Pivot to generate more direct revenue. I'm doing that on a number of sites of mine and it's working well.
Example: Google is getting into the loan lead generation business (http://adwords.blogspot.com/2009/10/introducing-adwords-comp...) and the airlines business (http://www.google.com/press/ita/) because they know that by letting advertisers get access to their audience, they are leaving a lot of money on the table.
I see their trend towards trying to get more of the pie continuing over time to expand into banking, movie tickets, car rentals and a gazillion other industries until they start coming close to the antitrust lines because it's a huge source of revenue.