I think it also depends on the niche. I've found that with a good promotional budget, the more targeted the niche the better the ROI.
Yes, I agree with this. Some niches are much harder fought than others. I have discovered this through experience particularly in sports niches. I think it extends beyond having the advertising budget though. You really need to be able to offer something a little different by way of incentive to return in a competitive niche. Competitions and fresh original commentary/editoriall type articles on the front page can go a long way ot developing a loyal following.