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| Does Web Traffic Correlate to Revenue?
The success of a website is dependent on traffic to the website. A content based website such as TMZ often gets a lot of traffic (12 million visitors per month, each visitor generating multiple page views) due to incoming links and higher visibility to search engines. It relies mainly on ad publishing for its revenue stream. With advertising rates so low these days, only a very high volume website (more than 1 million page views per month) can make substantial money.
Traffic can be related to ad publishing revenue for content-based websites because higher page views generate more ad revenue.
How Revenue Depends on Traffic
Let's consider the income potential for a content based website such as TMZ. A web page on average can show two banners (one on top and one skybanner on the side). The average CPM (cost per thousand) rates are around $0.50. This translates to a CPC (cost per click) rate of $0.10 per click with a 0.5% CTR (click through rate).
The website can also show one pop under ad per visitor at $3.00 CPM. The revenue that can be generated is below (assuming an average 5 page views per visitor).
Monthly Page Views 2 Banners @ $0.50 CPM Pop Under @ $3.00 CPM 25,000 $ 25/month $ 15/month
100,000 $ 100/month $ 60/month
1,000,000 $ 1,000/month $ 600/month
30,000,000 $ 30,000/month $ 18,000/month
For high traffic websites and for niche markets, the owner can negotiate a higher CPM rate. On top of that, these websites can promote one line ads directly from the advertiser for a fixed amount per month. Usually that rate is around $500 per month per text ad for approximately 30 million page impressions per month or 0.0167 CPM.
In the case of TMZ, Harvey Levin and his band of punks know that anything with Michael's name in the headline will generate clicks. The story doesn't even have to be true! Therefore, outrageous claims, salacious headlines, sick and twisted stories--doesn't matter--they all generate clicks for TMZ and put money in Harvey Levin's pocket.
For more insight into TMZ's disreputable practices, click here.
 The next time you're tempted to click on TMZ and put money in Harvey Levin's pocket, please remind yourself that this is what you're supporting. Here's the latest TMZ smear of Michael Jackson's personal legacy.
http://tinyurl.com/tmzsmear
Here's Charles Thomson's rebuttal.
http://www.sawfnews.com/Gossip/66107.aspx
Please, for Michael's sake, don't click on TMZ.
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