Gawker CEO: Alleged Brett Favre Photos Cost Deadspin $12K
The photos that Brett Favre allegedly sent to Jenn Sterger were worth a bundle of page views for Deadspin.com -- the original post featuring the video and picture montage (NSFW disclaimer for those of you who click and press play) has garnered nearly 5,000,000 page views, according to Gawker's counter.
So the going rate for alleged Favre private-parts self-portrait? Well, Nick Denton, head of Gawker, told the Ignition Conference in New York City Thursday that the media company paid $12,000 to acquire them. This fits in perfectly with Deadspin Editor-in-Chief A.J. Daulerio's earlier statement that the site paid "way less than $20,000" following a report that they coughed up $75,000 to get the pictures.
Did this work out for Deadspin? Well, let's ask the guy who shelled out the cash.
"I love paying for information," Denton said at the Ignition event, via Business Insider.
Then, um, yes, it worked out quite well -- Denton estimates that Deadspin's value grew by "millions" as a result of the coverage it got for the coverage it gave Favre's nether regions.
Let's throw out site valuation (for just a second) and focus quickly on whether there's an actual return on investment (ROI) in place here. Assuming that Deadspin makes a CPM (cost per thousand impressions) of $5.00 (which is really, really conservative given the brands they display -- Tequila! -- and the demographics -- young and rich! -- they claim to own), they have pulled in about $25,000 so far ... on just the initial post.
Subsequent posts (some simply entitled "What They're Saying About Brett Favre's Penis Today") in the "FavreSterger" tag section of Deadspin generated between 20,000 and 1,750,000 hits as well. You can do the math if you're so inclined (add up all the hits, divide by 1,000 and then multiply by an advertising dollar amount), but it's a big chunk of change.
If Deadspin's getting more than a $5.00 CPM -- which is a pretty logical assumption to make because they don't operate on an ad network, maintain most stuff in-house and really carve out a niche audience -- they made out very well on that initial $12,000 investment. (Very, very well, in fact.)
Add in that, as Denton recently wrote on Lifehacker, the Favre stuff has caused advertisers to really start specifically requesting Deadspin when they inquire about advertising, and it's not hard to see that Gawker crushed it when it comes to ROI on Brett Favre's penis.
Throw in the theoretical increase in valuation by millions of dollars, and, yes, Favre's private parts are a steal at $12,000.