Given an equivalent audience, which of these sites do you think would generate t

Question

Given an equivalent audience, which of these sites do you think would generate the most revenue? You could develop a simple spreadsheet model based on the following figures: 1 Monthly site visitors: 100,000, 0.5 per cent of these visitors click through to affiliate sites where 2 per cent go on to buy business reports or services at an average order value of 100. A commission percentage is required to calculate this. Assume 25 per cent of average order value. 2 Monthly page views: 1,000,000, average of three ads displayed for different advertisers at 20 CPM (we are assuming all ad inventory is sold, which is rarely true in reality). 3 Subscribers to weekly newsletter: 50,000. Each newsletter broadcast three times per month has four advertisers each paying at a rate of E10 CPM Visitors Clickthrough Affiliate Conversion Sales Average Revenue at 25% site visits order value commission rate rate (Euros) 100,000 | 0.50% | 500 2% 10 250 Monthly Ad units per Inventory sold Total adsCost perTotal served1000 rvenue page page ,000,0003 100% ,000,000 20 60,000 Newsletter Newsletters Advertisers Inventory Total ads Cost per Total subscribers per month sold served 1000 revenue Euros) 10 50,000 100% | 600,000| 6000

Explanation / Answer

Question 1 Monthly Site visitors M R A CR S AV R Monthly site visitors Click through rate affliate side visits conversion rate sales average order value (Euros) Revenue at 25% commision 100000 0.005 =A7*B7 0.02 =C7*D7 100 =(E7*F7)*25% 100000 0.005 500 0.02 10 100 250 Given Given =MXR Given =AXCR Given =SXAVX25% STEP 1 STEP 2 STEP 3 Question2 M A I TA C TR Monthly Page views ad units per page inventory sold total ads served cost per 1000 (Euros) Total Revenue ALL AD SOLD 3000000 60000 1000000 3 1 =A17*B17 20 =(D17*E17)/1000 Given Given Given =MXA Given =(TAXC)/1000 Step 1 Step 2 Question 3 N NPM A I T C TR News Letter subscribers News letters per month Advertisers Inventory sold Total ads served Cost per 1000 (Euros) Total revenue (As all subscribers so 100%) =NXNPMXA =(TXC)/1000 50000 3 4 1 =A26*B26*C26 10 =(E26*F26)/1000 =600000 =6000 Given Given Given Given Step 1 Step 2 Pls see the abbreviations and calculations

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