Tuesday, January 29, 2013

Bullseye Brick and Mortar - The growth potential

This is somewhat hard to estimate, but I’ll do my best. San Francisco has around three hundred thousand businesses according to datasf. If there is a 10% turnover per year and half of the new businesses use BBM to find their spot and it takes 200 page views to do find a location, that would amount to three million page views per year. If the ad click probability was 2% per page view, there was an average of one ad per page view and the cost per click was twenty five dollars, that comes out to be 1.5 million dollars per year in revenue in San Francisco. I think that BBM could scale up another factor of 100 if it went nationwide.

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