Learning Exercise
Learning About Internet Advertising Income Factors
This assignment guides users through some exercises with the Internet Advertising Calculator. It also includes research activities on advertising payment rates.
Course: marketing, introductory information systems survey, e-commerce
- Material:
- Internet Advertising E-Commerce Calculator
- Date last modified:
- May 16, 2000
- Created by:
- Ralph Westfall
- License:
-
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A JavaScript calculator that calculates revenues for three different modes of electronic commerce advertising. These... see more
Exercise
BACKGROUND INFORMATION:
One very easy way to do business on the Internet is to put advertising on a web page. There are no additional costs when you do this, so the income is essentially all profit.
DIRECTIONS:
- Load the Internet Advertising Calculator.
- Read the information on the three ways to make money with Internet advertising.
- Use the calculator to determine the incomes for varying levels of the input factors for each of the three ways to advertise
LEARNING QUESTIONS/ACTIVITIES
- Use a search engine to find sites with programs that you feel are appropriate for advertising on your web site, or on a site that you could develop. Get information on payments offered by these sites.
- Go back to the Internet Advertising Calculator and use it to answer the following questions:
- using the factors you have found, the typical factors on the Advertising Types page, and/or your own personal estimates, calculate what income your site would generate with: 100 visitors per month, 1000/month, 10,000/month, and 100,000/month. Do this for CPM, click-throughs, and commissions
- using this data, roughly estimate how many visitors you would need to generate incomes of $100 per month and $1000/month for CPM, click-throughs, and commissions
- summarize the relationship between traffic volumes and web site income. How important is volume in comparison to typical payments for CPM, click throughs, and commissions?