Tuesday, March 11, 2008

News Portal Case Study: Increasing Online Ads Revenue

A fictitious portal company PortalWeb is a high traffic news and blog website. It has 2M page views per day and monetizes the service via ads. At 1% CTR it gets 20,000 clicks at $0.5 per click. Ads’ income is $10,000/day or $300k per month.

The website couldn’t handle growing traffic which resulted in 5% downtime. Monthly loss was $15k or $180k per year. In addition PortalWeb was losing some loyal customers and traffic wasn’t growing the way it should.

The company implemented complex external and internal network and systems monitoring, which revealed the load problem during peak hours. One of the discovered causes was related to RAM memory limits. The servers were upgraded to 4GB RAM. With small investment the Company accomplished 99.9% uptime and significantly increased its advertisement revenue. The ROI exceed all the expectations.

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