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how much for selling advertising space

Posted on 2006-11-29
Medium Priority
Last Modified: 2010-04-27
I have a website with adverts to buisinesses.  What is the market rate for each business to have their advert on my site? It is not a google link or anything just logos and banners that link to their sites.

Can someone advise how I calculate this?

Question by:roscoeh23
  • 2

Expert Comment

ID: 18041697
It totally depends on your audience and your traffic.  Advertisers should want to know how many unique visitors you have per day, and how many impressions they can expect.  The more demographic information you have about your visitors, the better.  If you're in a niche market, you can make some assumptions about your audience (if your site is mostly about luxury watches, for example, most visitors are likely to have a high household income).  Find your competitors, and compare their ad rates.    You'll want to undercut them initially to gain market share and then start gradually raising your rates.

Also, given the amount of clickthrough fraud, advertisers may be more confident purchasing advertising at a flat weekly or monthly rate.  
LVL 16

Expert Comment

ID: 18059455
I'm currently finding that pay-per-action (commission-based) is worth very little compared to pay-per-click (with AdSense). I strongly recommend you give AdSense a try on a couple of your highest-traffic pages first. If no relevant ads show up (or you only get lame ads for non-sites) then look elsewhere.
LVL 20

Accepted Solution

Serena Hsi earned 2000 total points
ID: 18069957
You can probably look at the online media kits of publications that have both online and print media areas where they sell ad space. Let's take the banking industry for example.

The Scotsman Guide is a monthly trade publication with nationwide distribution. Its media kit is split into two areas: residential and commercial. I'd suspect the residential (B2C) has different rates than the commercial (B2B) edition. Look at the commercial media kit (http://www.scotsmanguide.com/pdfs/Media_Kits/2006_Com_MK.pdf). Distribution for July 2006 was 34,047 issues, split among commercial wholesale lenders, commercial mortgage lenders, with bulk of the subscribers being commercial mortgage-origination offices. The smallest ad size in their publication is 1/16 page (4.73" x 1.6") with a one-time insertion cost of $1,700. The largest ad size is a spread (21.25" x 15") with a one-time insertion cost of $11,700. You don't expect the small shops to be spending their entire ad budget on multiple insertions for the large ads; just as you wouldn't really expect a large company to place small ads. However you set your pricing for advertising has to fit the needs of your advertisers. That's a print publication example, but it can just as well extend to their online banner ad space. A one-time banner ad insertion runs $1,000 per month, static ads only (no flash). You can take this same example and look at the ad space being sold by publications in your own industry.

There are a few factors that seem to drive ad revenue, ad space, and advertisers willing to advertise on your ad space. Metrics. Bankers especially want to see a return on their investment and whether or not placing an ad on a mortgage publication website yields viable sales leads.

If you want to calculate this "mystery number" for any and all industries, you need to understand your own industry, who your primary competitors are (for ad revenue, or for products/services offered), what the benefits to advertising on your site are versus advertising on a national directory (like Whitepages or Yellowpages.com), etc.
LVL 20

Expert Comment

by:Serena Hsi
ID: 18069981
Click-throughs are worthless if they don't convert into viable sales, IMHO.

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