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Comment by zachallaun | Hacker News Reader

This is clearly simplified, but nevertheless...

  [deleted]

[edit] Info from comments demonstrates these results, though simplified, to be incredibly optimistic. Assuming a CPM of $1.00 and taking into account the ratio of paid advertisement to Reddit advertisement, the Monthly Revenue number would dip significantly to $100,000.

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No site like Reddit can fill 1 billion impressions at $2 eCPM. Closer to $0.25 I'd bet.

I've run the "sponsored link" ads before, and it's usually $0.40-0.70 CPM.

It seems that CPMs are more in the $0.50-1.00 range[1]. Which still translates into a very nice chunk of change and that's not counting other initiatives such as reddit gold.

[1] http://www.winningtheweb.com/reddit-homepage-advertising-res...

I have no idea but judging from the amount of real ads I see on Reddit, I'd guess they make way more money from Gold than from display ads at the moment.

That's insanely optimistic to the point of absurdity.

Don't forget Reddit Gold. They were at 40k/month when they started, probably up to 60k/month now.

Keep in mind 90% of the ads right now are just games or reddit ads (keep refreshing the page). Not mention a good percentage of their users use adblock and are extemely anti-commercial. I think they are making significantly, significantly less.

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