Estimation of Market Size: Lead Gen and Advertising

venture-lab.org frames estimating market size terms of Total Available Market, Served Available Market, and Target Market. Here is our estimate of market size for the “Lead Gen and Online Advertisement” customer segment.

An annual user traffic of 12 million will leverage revenue from higher education lead generation and online advertising specific to our education niche.

Total Available Market
Lead Gen: 2012 Online for profit education is a $25 – $27 Billion industry (IBISWorld Database)

Online Advertising: $26.04 Billion in 2010 – $49.50 Billion projected in 2015 (source: http://www.emarketer.com/Article.aspx?R=1008476)

Served Available Market
Lead Gen: GCU spent 22% of gross revenue on sales and marketing (lead gen). Assuming 22% of entire market is spent on lead gen, that yields $5.5 Billion.

Online Advertising: Only including Search, Banner Ads, and Rich Media = $12 + $6.23 + $1.54 = $19.77 Billion

Target Market
Lead Gen: Assuming 12 million annual site traffic, with high value conversion rates @ 2% and $40 each, yields (12 million * .02 * $40) = $9.6 million.

Online Advertising: Assuming 12 million annual site traffic, with 10 high value ads based on niche user base, priced at $50 per CPM, yields (12 million users * 10 ads * $50 / 1000 impressions) = $6.6 million (Source: http://computer.howstuffworks.com/banner-ad7.htm)

Conclusion
Adding the estimated market sized of Lead Gen and Online Advertising yields $16.2 million in revenue.

 

Featured image source: http://www.harrisbeach.com/publications/education.jpg?1293722184
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