Reuters put out the following which says that there aren’t enough Advertising dollars to go around to all the sites that want to generate revenue. Most stricking was that 90% of Advertising revenues are made by the top 50 sites and the top 10 sites take 70% of that, with google taking 40% of all Online US advertising.
Facebook looks like it will average over 50 billion pageviews a month, or 600 Billion pageviews this year on revenues of 50 to 75 million coming from banner ads. That works out to an average CPM of around 10 cents. Google on the other hand makes an average $15+ CPM on search.
I see a lot of paid sites now looking to cash in on advertising but it doesn’t really make much sence, given the average top 10 site only has 400 million pageviews a month. Given a 10 cent CPM that works out to about 40k/month, but since dating sites have less pageviews per unique you might get 50 cents a CPM but that only gets you 200k/month in revenue. For a site like match does giving up 10-20% of your screen space for ads make up for a 2% increase in revenues ?
Many of the users who end up on plentyoffish do so because they lose repesect for paid sites. No one wants to pay for a service and then be bombarded by flashing ads, like the ones here, those are so annoying I don’t even allow them! Many of the sites that trying this, like Lavalife, or true.com etc are just desperate for more revenues or a good story for investment bankers to sell to potential Acquirors.