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What are the margins in the online ad network business? Any good articles on it?


I am wondering how profitable the online ad network business is. Someone mentioned to me it is at best 10% gross margin business - is that right? Any articles or data on it someone could point me to?

Well, that depends upon how much you spend per month. If you are spending in excess of a million per month, then 10% is probably close, but may be a little low.

However, I only spend about $10,000 per month, and my margins are usually above 50%.

The smaller you are, the easier it is to find little niches where there is a large profit margin. You can't do that with a big budget, though, there aren't enough small niches available.

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