Learning Exercise: Learning About Internet Advertising Income Factors
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.
- 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
- 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?
- College Upper Div Major