Ads are sold in many ways

• Per impression – best for provider

  • Usual approach for “legitimate” sites

• Per click – a (sometimes) fair middle ground

  • Prices range from 2.5¢ – 18¢ per click
  • Raw click-through rate is O(15%)
  • Click-bots burn everyone

• Per sale – best for advertiser

  • Usually 50–100% of first sale, not renewals

    • When renewals are involved, rate drops to 20%

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Ads - who pays for bandwidth?

Click price - competition history

Click rate is influenced by number of ads, number of pages with ads, quality of ad, age of ad, location of ad vs. content (12% for customer X, dropped to 4% when set up multiple pages) (38% click rate for blow ad) (legitimate industry average of 1-2%)

Where is the click counted? Uniques?

Per sale - how much is the first sale, how long is the renewal period?

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