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Mark Cuban on the non-value of aggregator traffic

Mark Cuban on why traffic from aggregation sites is worth diddly-squat to publishers:

The value of the traffic sent by most sites is minimal at best. Lets look at your best friend Michael Wolf’s site Newser.com.  According to Quantcast he gets about 24k unique users every day.  If  1 pct  of those users went to a Fox Site, say the NY Post, and each looked at 5 pages, that would be a total gain of 1.2k Page Views. If you were able to sell 1oopct of those at $15 CPM, which you can’t. You would make $18  per day. About $ 6.5k  per year. Best case.

More likely, in this economy,  you are not selling 90pct of the inventory he sends you. Heck, you aren’t selling a big chuck of the inventory that you get on your sites anyway, so the marginal value of the traffic sent by Newser.com might be about zero.

And I’d be willing to bet that for a lot of publishers, Google News traffic doesn’t add up to much, either.

(From my own experience, traffic from aggregation sites and links from other blogs increase ad revenue by virtually nothing – I mean, literally, many thousands of impressions but pennies in click through/CPM. Search traffic on a few buying-focused keywords, on the other hand, basically pays the hosting bills. If I wanted to make money from this blog, everything would be about products.)

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