> But, based on a survey of social network sites let's assume an average CPM of $0.40. You would need 2.5 Billion page views per month to earn $1M in ad revenues. That is 2,500,000,000 page views...and how many sites can sell out all their page view inventory?
This makes the mistake of assuming that one page impression = one ad impression. That's not the case on most sites. Most sites can quite easily have 2-4 ad impressions per page impression.
Also, it's not hard to sell out ad inventory at ridiculously low CPMs. There's always someone willing to pay something for a genuine ad impression. Most sites can probably sell a little bit of their inventory for a high CPM and the rest for a very low one.
This makes the mistake of assuming that one page impression = one ad impression. That's not the case on most sites. Most sites can quite easily have 2-4 ad impressions per page impression.
Also, it's not hard to sell out ad inventory at ridiculously low CPMs. There's always someone willing to pay something for a genuine ad impression. Most sites can probably sell a little bit of their inventory for a high CPM and the rest for a very low one.