How much is Untargeted Traffic Worth?

  • shawnp
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  • shawnp
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Post 3+ Months Ago

Hi,

I am trying to get an idea of the value of traffic on a video website I would like to start. The content would be similar to that of YouTube, Grouper, Newgrounds, etc. (but it would not be user generated content). I plan to earn money by selling ad space through text-link ad servers like Adsense and Adbrite.

In my research so far, prices I have found for advertising on similar sites vary wildly from $7.00 CPM to $0.05 CPM. Does anyone have any more accurate information on CPM's for this type of traffic?

I am also trying to find out what click-through rates are for this type of traffic. I’ve seen 0.1% click-through rates mentioned quite often for untargeted traffic. But if I do some calculations using published data from Adbrite’s website, it seems way lower.. like 0.005%. Adbrite shows the average clicks per day and pageviews per day for each publisher’s sites, so I am calculating like this:

(Clicks per day/Pageviews per day) x 100 = Click through rate (in percent)

Is this the standard way to calculate Click-through-rate? This calculation assumes the ad will show on every page of the site, which seems to be the way they are doing it on the sites I have used for calculations. Do these numbers sound right?

Sorry for this lengthy first post. Any insight is greatly appreciated!

Thanks,
Shawn
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Post 3+ Months Ago

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