Seth and the team over at HQ have been super busy, as always. The latest in the line of Squidoo Developments is experimenting with a new ad setup.

The New Squidoo Ad Setup

The old Google Adsense Ads remain on the page. A new 300 pixel ad has been added in the upper right hand corner, a tower ad to the right sidebar, and a banner ad at the footer of every page.

These ads appear to be part of a CPM (Cost Per Impression) network where Squidoo (and therefore lensmasters) get paid based on how many times the ads are seen, not clicked on.

In Seth’s year end letter he mentioned that they get 6 million unique visitors a month and about 12 million visits. That a ton of impressions with three ads a page…

Is there a precedent for these ads?

The ads don’t really bother me but I wanted to see if they were over the top so I started checking out some other news sites. Surprisingly, the ad placement is very consistent with other major media sites on the web, from the big blogs all the way up to CNN.com .

Is everyone screaming about how they are the end of the world?

Of Course.

Are the new ads worth it?

Well, lets do some quick math here.. 12 million visitors at 2 pageviews a piece with 3 impressions per page is 72 million ads served in a month. If Squidoo get’s paid $0.50 CPM (which is pretty cheap) that brings in $36,000 in extra revenue. After Charity and Squidoo’s cut that leaves an additional $17,100 every month for Lensmasters.

To give you an idea of how much this is, that is enough to raise the top adsense payout tier to $10 per lens and the second tier to over $2.00 per lens.

Potentially doubling the Captain’s adsense payout? Definitely worth a look….

-The Captain