Friday, July 31, 2009

International Visitors could lead to Lost Revenues

To show how this geo-filtering can substantially affect your earnings, let’s continue with the same example but this time assume that out of the 100,000 page views, 40,000 were from the US while 60,000 were from Australia and Malaysia; and assume that your in-text provider doesn’t serve ads for visitors from Australia and Malaysia. In such case, your net impressions will be only 40,000 (40% fill rate) and you will earn only 40 times $5 = $200, instead of 100 times $5 = $500.

When your provider reports calculate eCPM, you will see $200 divided by 40,000, divided by 1,000, which equals $5, so it would seem as if you have a relatively high eCPM of $5 as you expected. But if you calculate your actual eCPM with your real number page views, it will look grim: $200 divided by 100,000, divided by 1,000, which equals only $2 eCPM. This shows how comparing eCPM figures without analysis could be deceiving.

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