Search all MERLOT
Select to go to your profile
Select to go to your workspace
Select to go to your Dashboard Report
Select to go to your Content Builder
Select to log out
Search Terms
Enter username
Enter password
Please give at least one keyword of at least three characters for the search to work with. The more keywords you give, the better the search will work for you.
Select OK to launch help window
Cancel help


Advanced Search


Search > Learning Exercise Results > Learning About Internet Advertising Income Factors

Learning Exercise: Learning About Internet Advertising Income Factors

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


Submitted by:
Ralph Westfall
Date Last Modified:
May 16, 2000


Internet Advertising Calculator Assignment


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.


  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


  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?



  • College Upper Div Major


electronic commerce, marketing, advertising


web browser, search engines

Learning Objectives

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

Type of Task

  • Individual
  • Student-centered
  • Supplemental activity
  • Team
  • Unsupervised