Revenu e The Internet Wants to Be Free, but You Need to Get Paid
May 06, 2015
Revenue The Internet Wants to Be Free, but You Need to Get Paid
Hi. I’m Andrew.
My life in advertising:
Revenue Science publisher clients
Direct
ecommercesubscriptionvirtual goods
brands
Indirect
adslead generationaffiliate / CPA
Direct
ecommercesubscriptionvirtual goods
brands
Transact = $$$
Transactions as funnels
Users enter
Browse
Add to cart
Buy
ARPU = average revenue per user
ecommerce ARPU• new users• % browse• % add to cart• % who buy• average order size
virtual items ARPU• new users• % register• % buy currency• purchases/month• average order size• churn %• month2 revenue
subscription ARPU• new users• % register• % subscribe• month1 revenue • (1-churn %) *
month2 revenue• …
3 steps to max ARPU
• Identify user funnels
• Increase repeat visits
• Raise average order size
Indirect
adslead generationaffiliate / CPA
Ad impressions
Clicks
Leads
Affiliate
ad impressions RPM• CPM
clicks RPM• CTR * PPC * 1000
leads RPM• % conv * CPL * 1000
affiliate RPM• % conv * order size* 1000
Inventory modelImpressions RPM
Home 200,000 $1.00
Profile 1,000,000 $0.25
Forum 2,000,000 $0.25
Message 500,000 $0.50
Search 500,000 $10.00
4 steps to max revenues
• Grow audiences
• Higher CTR and conv %
• Advertisers
• Optimize
Direct
ecommercesubscriptionvirtual goods
brands
Indirect
adslead generationaffiliate / CPA
Questions?
voodoo [at] gmail.com
http://andrewchenblog.com
@andrew_chen