Assume a website claims 100 million page impressions per month. If each page has only 2 advertisements, that's 200 million available ad impressions per month, or 200,000 ad units (as sold per 1,000 impressions). If the average CPM is only $2, that's $400,000 in ad revenue per day, or $4.5 million per year in gross. 1. Is there anything flawed about that deduction? 2. Does that REALLY happen when a site actually does get 100 million page impressions per month (2 ads per at $2 CPM, for example)? Are websites realizing on all of their ad space? Thanks guys!
There's nothing flawed about the numbers you put up. But do you realize what it takes to get 100 million page impressions a month? That's is a lot! Think about it. Example: A site has 10 million visitors a month. The site has 10 pages with the same ad, and all 10 million has to go to all 10 pages. See what I mean? And, who is charging $2 for only 1,000 impressions? If you want to roughly know how much a site makes, first look at their rates. Then count up all of their ads, and then do the math. That is, roughly, how much they make. You will see that that "$400,000" a day isn't even done in a month.