Interesting analysis of MIVA’s business model by Pablo Palatnik, who shows that almost half of their revenue is generated via Google AdSense and arbitrage.
“MIVA generated approximately $0.07 per lead on its 240 million clickthroughs during the third quarter of 2006. By outsourcing some of the billable ad space on its online destinations, search portals, widgets, and desktop toolbars to Google through the Google AdSense program, MIVA stood to make more on each generated lead, even after Google took its cut.”
$.07 per click with 240 million clickthrus is roughly $16.8 million. In the third quarter, MIVA made roughly $37 million. Yet another company which seems dependent upon Google AdSense, MIVA is another example of how Google has changed the online marketing world.
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brian smith on Oct 6, 2007 at 2:10 pm
So how much more revenue per visit could Yahoo! generate if they replaced YSM with Google AdSense?
-b
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