Traffic numbers: what’s the relationship to revenue?
December 17th, 2007 by Benjamin KuoFor anyone who has been making the rounds of the holiday parties and networking events, one of the things you hear quite a bit now is people bragging about their traffic numbers. Just today, Funny or Die — the video site from comedy star Will Ferrell — reported that it had “surpassed 50 million views” of the firm’s hallmark “The Landlord” video. The video is hilarious — however you have to wonder how (and if) those traffic numbers correlate in any way to revenue. I recall a podcast I did last year with Tony Greenberg of Ramprate, talking about the costs of hosting video on the Internet. Traffic isn’t exactly free, and I wonder what the actual costs versus revenue numbers are for all that video traffic.
