Many communities created by passionate fans and hobbyists aren’t done so to create or keep customers at all. The majority of communities in the world were created by passionate amateurs. Their goal (when one exists other than enjoyment of the subject) is to generate advertising revenue. This also applies to many communities on major news sites (such as those that allow commenting).
A community can increase ad revenue in two forms. This might be advertising driven by repeat visits as a result of community features (e.g. commenting) added to the site, or advertising revenue via placement adverts on the community. This latter figure can be taken directly from advertising invoices. The former requires a calculation to identify the advertising revenue per single page view and then the number of additional page views generated as a result of adding community features.
A community can increase ad revenue in two forms: new site features (e.g. commenting) or placement ads.
Click to Tweet
To calculate this, you need the following data:
- Percentage of repeat visitors on a random selection of articles with comments enabled.
- Percentage of repeat visitors on a random selection of articles with comments disabled (this is explained below).
- The total number of visits to comment-enabled articles per month.
- The CPM rate (cost per thousand). If using CPC (cost per click) or CPA (cost per action), this will be very different.
Community ROI Template
You can drop these figures into the spreadsheet here or follow the process below.
Google Plus Google+