Explanation of how advertising works and pricing:
I’m pulling some of this data from https://www.topdraw.com/insights/is-online-advertising-expensive/ but you can skim through the internet as much as you want and you’ll find numbers.
CPM = Cost per thousand impressions. This means it’s how much places pay for 1,000 people to see their ad.
Overall average cost of ads are $3-10 CPM. But they vary depending on type. For example, it also states:
Advertising on Google’s Display Network is very inexpensive when viewed within the CPM lens. We find that display campaigns average $0.50 – $4 CPM, with an average of $3.12.
That’s a huge range of pay!! Let’s break it down on each range. That means we’ll take the amount and divide by 1,000 to see how much they pay per ad:
- $0.50 CPM = $0.0005
- $3 CPM = $0.003
- $10 CPM = $0.01
We have to assume Brave is getting paid somewhere in between on those ranges. How much they charge precisely is something I don’t know and I’m sure will vary quite a bit.
Since we get paid 70% of what Brave gets, let’s see what 70% of each of those numbers would be:
- 70% of $0.0005 = $0.00035
- 70% of $0.003 = $0.0021
- 70% of $0.01 = $0.007
At the time I’m writing this, 1 BAT = $0.24382
Let’s take the value of 1 BAT ($0.24382) and divide it by the numbers we just got. In other words, the 70% number so we can see how many ads we would have to view to get 1 BAT if they were all in that amount.
- $0.00035 = 696.628
- $0.0021 = 116.104
- $0.007 = 34.8314
So you can see, on the low end it means we would have to see nearly 700 ads to get 1 BAT.
Of course, if they can charge an advertiser on the higher end, it means we could see as few as 35 ads to earn that same 1 BAT.
That’s a pretty big range. I’m not sure exactly what Brave is charging, but I wanted to show that what we’re getting doesn’t seem unreasonable.