5 things that make your social network monetize like crap Posted by andrew_null on Wednesday September 26, 2007 @02:03PM from the andrewchen.typepad.com dept. http://andrewchen.typepad.com/andrew_chens_blog/2007/09/why-your-social.html ( 4 comments | 17 points | on HN )
Correct: CPM = Clickthrough Rate x Price Per Click x 1000
Example: If you have CTR or 2% and each click generates $0.40, you have CPM of 0.40 x 0.02 x 1000 = $8.
Which is exactly why more CPA ad systems are needed. That's the best way I see to allow everyone to get their interests in line.