MobileRead Forums - View Single Post - Is this an end around or precursor of in ebook active ads?

Kali Yuga · 03-07-2011, 06:44 PM

The idea of in-book ads has been batted around for a few years. It still hasn't materialized though.

Why? Because it is highly unlikely anyone could earn enough revenue off of the ads to subsidize purchases, especially without destroying the reading experience.

For example: With web ads, the CPM (cost per 1000 impressions) can vary anywhere from $20 to $2, and are falling. If you manage a $12 CPM, a book that sells 10,000 copies earns $120 in ad revenue. If the ebook only costs $5, then the ad revenues only managed to replace the revenues of 24 out of those 10,000 copies; 100 ads replaces the revenue of 2,400 copies.

Or: Each ad in a book might save you $0.012. Place 100 ads in a 250-page ebook, and under optimal circumstances you can reduce the cover price by $1.00. Would you want a banner ad every 2 1/2 pages in a book you read?

It's entirely plausible that they will put a few discreet ads at the end of ebooks, akin to paperbacks. But the economics are predominantly against ad-supported ebooks.

03-07-2011, 06:44 PM	#3
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	The idea of in-book ads has been batted around for a few years. It still hasn't materialized though. Why? Because it is highly unlikely anyone could earn enough revenue off of the ads to subsidize purchases, especially without destroying the reading experience. For example: With web ads, the CPM (cost per 1000 impressions) can vary anywhere from $20 to $2, and are falling. If you manage a $12 CPM, a book that sells 10,000 copies earns $120 in ad revenue. If the ebook only costs $5, then the ad revenues only managed to replace the revenues of 24 out of those 10,000 copies; 100 ads replaces the revenue of 2,400 copies. Or: Each ad in a book might save you $0.012. Place 100 ads in a 250-page ebook, and under optimal circumstances you can reduce the cover price by $1.00. Would you want a banner ad every 2 1/2 pages in a book you read? It's entirely plausible that they will put a few discreet ads at the end of ebooks, akin to paperbacks. But the economics are predominantly against ad-supported ebooks. Last edited by Kali Yuga; 03-07-2011 at 07:11 PM.