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
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A JavaScript calculator that calculates revenues for three different modes of electronic commerce advertising. These... see more

Exercise



Internet Advertising Calculator Assignment



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:




  1. Load the Internet Advertising Calculator.

  2. Read the information on the three ways to make money with Internet advertising.

  3. 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




  1. 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.

  2. Go back to the Internet Advertising Calculator and use it to answer the following questions:



    1. 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

    2. 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

    3. 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?



Disciplines

Requirements

web browser, search engines

Topics

electronic commerce, marketing, advertising

Learning Objectives

understand the different types of advertising on the Internet; understand the relationship between traffic volumes and Internet advertising income