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Originally Posted by porno jew
robbie for most of the partnership programs they are affiliates and taking their cut of the sales.
why would they hire staff to cut and upload videos when the sponsor will do it? and when the sponsor knows exactly what will convert and have access to stats, not have to guess at it? think about it.
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With a ctr <= 1% they aren't making as much as you might think. I have to admit that some are starting to offer more ad space to content producers and the ctr is probably going up but I seriously doubt they are approaching what a good legal tube can do which is 3 to 5% ctr. That means they are inefficient. In simple terms it's like comparing a vehicle which does 10 miles per gallon to one which does 30 miles per gallon. It takes more gas (impressions, surfers, uniques) to go the same distance (sales). But it's even worse than that because you also need to factor in the ratios.
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The consideration of opportunity costs is one of the key differences between the concepts of economic cost and accounting cost. Assessing opportunity costs is fundamental to assessing the true cost of any course of action. In the case where there is no explicit accounting or monetary cost (price) attached to a course of action, or the explicit accounting or monetary cost is low, then, ignoring opportunity costs may produce the illusion that its benefits cost nothing at all. The unseen opportunity costs then become the implicit hidden costs of that course of action. Accounting cost includes only costs that have been explicitly incurred, whereas, economic cost includes opportunity costs. Similarly, this is a major difference between economic profit and accounting profit; opportunity cost being a variable in the calculation of economic profit.
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http://en.wikipedia.org/wiki/Opportu...ost#Evaluation
If you were to assign some sort of theoretical cost to each video impression as a way of measuring opportunity cost in many cases you very well could find that the opportunity cost of the tube campaign exceed the actual profits brought in. In some cases likewise it could be profitable. It's good business to know either way and consider this.
There is a hidden opportunity cost to each impression in practice because there are a finite number of impressions and paying porn surfers.