Traffic Aquisition Costs (TAC)

[NewYoungPup]

Does anyone have any insight into how to evaluate Traffic Acquisition Costs?

Sorry if this is a stupid question. I'm kinda new to this whole advertising side and I'm trying to figure out how to employ and manage traffic acquisition costs for my website.

any information or links are helpful
thanks
BD.

 

[Donny]

Normally TAC is used by Yahoo and Google to explain how much they had to pay their partners based on the revenue they brought in.

So let's say that Yahoo reports that for every $1.00 they bring in they pay out $0.50. Now this doesn't mean that their partners are making 50%, because they still get traffic on yahoo.com and they don't have to pay out anybody.

So that's how I look at TAC.

Now back in the arbitrage days, TAC calculations were done as well, this is where you would spend $1.00 on google and send that traffic to a parking company. The parking company paid you $1.35 for that $1.00 in google traffic so your TAC was $1.00.

Hope that is what you are looking for.

Donny