Objectives of knowledge management

party retail sites, and then purchase there.
Activity 2.3 explores some of the revenue models that are possible.
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65
Chapter 2
Marketplace analysis for e‑commerce
Figure 2.12
Example spreadsheet for calculating a site revenue model
Note
: Available for download at
http://www.smartinsights.com/
conversion‑model‑spreadsheets/
100,000
Site
£2
40%
0.10%
2
80
£160
£200.0
£1.60
100%
0.30%
1
300
£3,000
£1,000.0
£30.00
100%
1.00%
£0.30
1
1,000
£300
£30.0
£3
100%
0.50%
1
500
3%
£100
10%
£150
£30.0
£1.50
1,880
£3,610
£192.02
£36.10
Pages served
Measure
Ad revenue option
CPM (Cost Per Thousand)
% Inventory served
Avg. Clickthrough (CTR %)
Ad units served per page
Clicks – CPM ads
Revenue – display ads
Earnings per 100 clicks (EPC)
eCPM – display ads
% Inventory served
Fixed
run-of-site
sponsorship
Text ad
advertising (CPC)
Affiliate
commission
Display
advertising (CPM)
Overall metrics
for site
Avg. Clickthrough (CTR %)
Ad units served 1
Clicks – fixed
Revenue – fixed sponsorship
Earnings per 100 clicks (EPC)
eCPM – fixed
% Inventory served
Avg. Clickthrough (CTR %)
Avg. Cost Per Click
Ad units served per page
Clicks – CPC ads
Revenue – CPC ads
Earnings per 100 clicks (EPC)
eCPM – CPC ads
% Inventory served
Avg. Clickthrough (CTR %)
Ad units served per page
Clicks – Affiliates
Desination conversion rate (%)
Blue cells = input variables – vary these for ‘what-if’ analysis
Orange cells = Output variables (calculated – 
do not overtype
)
Average order value
Commission %
Revenue – affiliates
Earnings per 100 clicks (EPC)
eCPM – affiliates
Clicks – total
Revenue – total
Earnings per 100 clicks (EPC) – total
eCPM – total
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Part 1
Introduction
Activity 2.3
Revenue models at online media sites
Purpose
To illustrate the range of revenue‑ generating opportunities for an online publisher. This 
site looks at three alternative approaches for publishing, referencing three different 
types of portal.