Quote:
Originally Posted by CDSmith
When they are spending $20K or more per year here on advertising and threaten to pull their account unless a certain thread is deleted, well it ain't hard to figure out what's going to happen.
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Which is likely the perspective, but it is a very limited one.
The direct cost of losing a specific advertiser is anywhere from zero to the whole of his spending: it depends entirely on the demand for space. But the real cost doesn't begin and end with direct revenue. If the presence of a particular advertiser in some way enhances your own business interests, losing them could cost much more. And vice versa.
If I recall correctly from an article I read a few weeks ago, Playboy's online revenue was around $5 million a month during the first quarter of this year.
If they were being targeted by Zango customers, then by the most optimistic forecasts of 1/2% penetration, that alone might be costing them $25K per month. The lost revenue due to their content being spread around torrent sites has to be huge and many times greater than any benefit from the exposure (after all, who hasn't already heard of Playboy?). Etc.
It is remotely possible that an enterprise the size of Playboy Online isn't affected by the gray and black areas of online porn. But it is surely more likely that the cost is far in excess of anything they earn from any one advertiser.