REVENUE The Internet Wants You to Be Free but You Need to Get Paid

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 ecommerce subscription virtual goods brands Indirect ads lead generation affiliate / CPA Direct ecommerce subscription virtual 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 ads lead generation affiliate / CPA Ad impressions Clicks Leads Affiliate ad impressions RPM • CPM leads RPM • % conv * CPL * 1000 clicks RPM • CTR * PPC * 1000 affiliate RPM • % conv * order size* 1000 Inventory model Impressions RPM Home Profile 200,000 1,000,000 $1.00 $0.25 Forum Message Search 2,000,000 500,000 500,000 $0.25 $0.50 $10.00 4 steps to max revenues • Grow audiences • Higher CTR and conv % • Advertisers • Optimize Direct ecommerce subscription virtual goods brands Indirect ads lead generation affiliate / CPA Questions? voodoo [at] gmail.com http://andrewchenblog.com @andrew_chen