2f:I[75397,["/_next/static/chunks/0h0py-_snytkj.js","/_next/static/chunks/0.~_adh40~gbw.js","/_next/static/chunks/0h69-oa42qvcr.js","/_next/static/chunks/0ktj73v1.1ksi.js","/_next/static/chunks/0-2p7lz1j6cyb.js","/_next/static/chunks/0ez.9_8dj5uj7.js","/_next/static/chunks/0ko3tnou-6s-r.js","/_next/static/chunks/10c.kqztbk3ba.js","/_next/static/chunks/0sxgeqcdd6r21.js","/_next/static/chunks/06m1tq0pgs.hj.js","/_next/static/chunks/0i6~aii3vbux3.js","/_next/static/chunks/0y_684a3zp~.n.js"],"UserView"] 32:I[15637,["/_next/static/chunks/14_2afq1x2ixr.js","/_next/static/chunks/1815u6huw6ba_.js"],"IconMark"] 30:T466,Hello all,

I've been working on a business plan for a web site that relies on advertisements as a revenue model. During, I stumbled upon a shady area - the "impressions".

The "impressions" is the number of different advertisements a site can show it's visitors.

The problem was - how does the impressions effect the revenues of the site?

My thought was that it effects only the click rate (percent of clicks per total views). Average click rate of a site that does not target advertisements to users is around 0.5%. Obviously this number must change according to the impressions, but how??

My formula was:

clickRate = 0.5 * Min((adsPerPage * pageViews), impressions) / (adsPerPage * pageViews)

adsPerPage: Amount of ads displayed on a single page. pageViews: Average amount of pages viewed by a user per day. clickRate: The chance of a single user to click on an ad in a day.

The formula means that if there are more ads to show then a user can see in a day, the clickRate stays 0.5, but if there are less ads to show - there is less chance a user will click, thus the clickRate decreases.

What do you think?31:T4f9,Yossi Vardi is the biggest known Angel of internet start-ups in Israel. One of his famous success stories was ICQ which was funded by him and sold for $287 million dollars in June 1998.

I read an article about him in the Israeli "The Marker", which points out a few interesting things about the entrepreneur - funder relationship.

I've translated a saying of his that was quoted in the article:

"When I hear a pitch by an entrepreneur I look for a few things in them. First, they have to be very talented. I'm not interested in good or great entrepreneurs. I want them excellent. They have to be nice people, since some investments don't ripe in early stages. I always tell my wife that in case the investment fails in early stages, at least we gave a "scholarship" to a good guy and not to some idiot. Moreover, they have to be focused on the arena I like which is the internet. If they meet those criterias, there is a good chance I will invest in them. What exactly they are doing is less important. Business plans are a wonderful part of science-fiction. They are developed for people who love sausages and don't know what are they made of. How can one conduct a 'due diligence' on something that is only in his mind."

I would love to hear your thoughts, Tomer.

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How does impressions effect a site's revenue model

Interesting funder's point of view

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