Big Money in Online Advertising - Million Dollar Banners
The Wall Street Journal reports this morning that front page ads sell out up to 18 months in advance on Yahoo, MSN and AOL. Premium placement ads on MSN can fetch up to $1,000,000 for a 24 hour placement.
Henry Blodget, of securities fraud fame, does some Google math using the MSN ad numbers.
it's nice to know that the company could simply flick a switch and generate, let's see...2-3 prime placements at a time
X
$1 million per placement (and there would probably be a Google premium)
X
365 days a year
=
approx. $700 to $1.1 billion a year in incremental, super-high-margin revenue.
Not bad for flicking a switch. And that's just the front page...
Google has been printing money recently without having to rely upon many of the best revenue sources that many companies rely upon. Just another reason that I believe that Google remains a terrific long term buy.
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This posting also available at ReasonedInvesting.com
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