Hi,

It is pretty hard to work out if not impossible, because the cost per click
is not constant, and your performance on the app engine might vary wildly
from day to day so it may end up costing your more for the same work.

The way that I compare advert performance is against a Cold Call rate, which
generally is 1% that is, if you were in a Call Center and you ring up 100
people about your product, you are doing well if you get 1 person to buy
your product.

My general experience with adsense (and this is probably not meant for this
list) is that I am doing very well if I get a 4%-8% click through rate,
however 8% on one day may earn me less than 4% on another day.  The Google
Adsense team have a lot of good articles about where you should position
your adverts to get the best click through rate. (
https://www.google.com/adsense/support/bin/answer.py?hl=en&answer=17954)

Another thing to remember is that probably most apps, especially when they
start of will be well within their quota, so essentially you won't be
charged anything so you might not need to cover any costs.

One final thing, from my experience, if you can think of another business
model, premium features, sponsorship, tipjars you may get a better return
and cover your costs without the need for advertising.  For instance, I have
a featured user of the day on www.twollo.com, which if used should cover my
costs, there are some other things that I am working on too.  Adsense is
great if you can't think of other revenue models, infact I use it on most of
my sites on the app engine (www.thetopicthing.com etc)

Paul.

2009/4/17 sagey <[email protected]>

>
> Hello,
>
> I'm thinking about creating a webapp that would initially try to fund
> itself by using google ads.
>
> Does anyone have a calculation/formula/idea as to how many add clicks
> i would need to break even on the cost of hosting the site on gae?
>
> for example, Assuming i use up the free quotas, would you be able to
> say
>
> for 100,000 page views x% would need to click an add in order to break
> even.
>
> Thanks in advance
> >
>

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