The value of advertising

I have recently received an offer to include permanent links in this blog to several online shops in exchange of a maximum credit of 60€ (to be assessed by them) to be spent on these shops. Being a single payment, it sounded like a bad deal in the long term, but I wanted to do some numbers to understand how bad this deal would be. I will not mention the name of these shops because I do not want to advertise them for free, which would be an even worse deal…

This blog has been created two weeks ago (although I imported all the posts from my previous blogs). I am having around 40 visits each day, and this is expected to grow to the level of organic android soon (around 80 visits each day). This is not much, but I am not doing SEO, because I do not feel the need to artificially increase visits for any reason. I will use a value of 50 to simplify operations and think in the short term.

Let’s assume that I could have a CTR of 1%, which means 1 click in the advertising links for each 100 visits, or 1 click each 2 days. Now, if these clicks have a conversion rate of 5%, there should happen 1 buy for each 20 clicks, or 1 buy each 40 days. If their products have an average profit of 10€, my blog would generate for them 60€ of profit in just eight months. Maybe the expected CTR and conversion ratio is too optimistic, but I am not even taking into account that they do not give me money, but credit to spend in goods whose cost for the shops is not 60€ at all.

Of course I declined this offer, and if they read this post, my advice is to think in something more fair, where the publisher gets a compensation proportional to the value generated by the advertising over time.

Anuncios

Acerca de Rubén L.

Software Engineer
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