Thanks for the replies, after writing the post i sort of thought that
probably wouldn't be a definitive answer, but your posts have been useful
nonetheless.

I don't intend to rely on ads as my main source of revenue, i'm just going
hoping, in case my intended main revenue stream doesn't work, that i'll be
able to cover my basic hosting costs with ads.

2009/4/17 Paul Kinlan <paul.kin...@gmail.com>

> Hi,
>
> It is pretty hard to work out if not impossible, because the cost per click
> is not constant, and your performance on the app engine might vary wildly
> from day to day so it may end up costing your more for the same work.
>
> The way that I compare advert performance is against a Cold Call rate,
> which generally is 1% that is, if you were in a Call Center and you ring up
> 100 people about your product, you are doing well if you get 1 person to buy
> your product.
>
> My general experience with adsense (and this is probably not meant for this
> list) is that I am doing very well if I get a 4%-8% click through rate,
> however 8% on one day may earn me less than 4% on another day.  The Google
> Adsense team have a lot of good articles about where you should position
> your adverts to get the best click through rate. (
> https://www.google.com/adsense/support/bin/answer.py?hl=en&answer=17954)
>
> Another thing to remember is that probably most apps, especially when they
> start of will be well within their quota, so essentially you won't be
> charged anything so you might not need to cover any costs.
>
> One final thing, from my experience, if you can think of another business
> model, premium features, sponsorship, tipjars you may get a better return
> and cover your costs without the need for advertising.  For instance, I have
> a featured user of the day on www.twollo.com, which if used should cover
> my costs, there are some other things that I am working on too.  Adsense is
> great if you can't think of other revenue models, infact I use it on most of
> my sites on the app engine (www.thetopicthing.com etc)
>
> Paul.
>
> 2009/4/17 sagey <sage...@gmail.com>
>
>
>> Hello,
>>
>> I'm thinking about creating a webapp that would initially try to fund
>> itself by using google ads.
>>
>> Does anyone have a calculation/formula/idea as to how many add clicks
>> i would need to break even on the cost of hosting the site on gae?
>>
>> for example, Assuming i use up the free quotas, would you be able to
>> say
>>
>> for 100,000 page views x% would need to click an add in order to break
>> even.
>>
>> Thanks in advance
>>
>>
>
> >
>

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