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When evaluating how do you determine what optimal RPM or optimal earnings are for various niches or sites to know if sites are under optimized or have easy wins. Do you just know based on ad placements from prior sites
Generally, if we talk to a business owner and they tell us that they haven’t done any optimization or testing on ad placements, we figure that there’s room for improvement. Between us, we also have reasonably substantial experience with online businesses, so there is an element of ‘gut feeling’ based on prior knowledge.
Obviously, during due diligence we will also reach out to advertisers and other players in the space and try to get a gauge on what kind of CPMs we should be getting. Fortunately, we often have people in our networks that can provide this sort of guidance.