I'm setting up an ad-supported website and trying to work through the numbers. I came across this article that gives a model. Being a newb at advertising, I've got quite a few questions:
Sorry for so many questions all in one, but I'm just very confused and would like a little insight from someone familiar w/ ad-supported websites.
Watch out a little here, M in CPM is Thousand not Million.
Don't forget the Cost Per Action model too. Depending on your niche this might be more or less profitable. It has the advantage that it can be made more fraud resistant.
(These observations are from somebody who occasionally buys CPM/CPC advertising.)
[Edit] Reading through the article, it looks like he is more interested in showing how to estimate revenue than making any specific recommendation. The CPM/CPC figures look on the high side except for a site with a valuable niche. Note that the author states the figures in the example are several years old. (4) may be just to enable a comparison between the various models.