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The Well-Grounded Yuppie


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Friday, April 04, 2008

Internet Media South Park Quote

This week's episode of South Park talked about kids trying to make money on the Internet by uploading entertaining videos on the web. At the end of the the show, they had a "what did we learn speech" and it was the following:
Yeah, but you know I learned something today. We thought we could make money on the Internet. But while the Internet is new and exciting for creative people, it hasn’t matured as a distribution mechanism to the extent that one should trade real and immediate opportunities for income for the promise of future online revenue. It will be a few years before digital distribution of media on the Internet can be monetized to an extent that necessitates content producers to forgo their fair value in more traditional media.
Personally, I think the market has matured enough that if someone puts out something with millions of page views, and has access to the page (instead of uploading it to a 3rd party site like YouTube or MySpace), he could make a pretty big chunk of change.

All he needs to do is negotiate a banner deal or two with some companies. At the industry average rate of $10 CPM (cost per 1000 impressions) per ad, 2 ads per page, the publisher would receive about $20K every 1 million hits to that page. And if he can somehow increase the page's "stickiness" and get each visitor to click one more page averagely, that's $20k more for that original 1 million hits.

Southpark: It's not hard to monetize Internet media if there's enough traffic.

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