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How much to charge for advertising

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  • How much to charge for advertising

    I had an email from a company asking how much a month i charge for advertising.

    What should i charge. ?


    Here are my stats

    screen_2009-12-02 23.35.07.jpg

  • #2
    Try to charge for per click, just like Google Adsense. You may earn a good amount!

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    • #3
      You have a great stats for your site, your ad rates should be different for text links, banner. You can keep your options of PPC (Pay per Click), PPM(pay per million impressions). If you want to make it simple, you can add any banner on monthly or yearly basis.

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      • #4
        The above stats show that you have an average of 1500 visitors per day. You may charge the person on month or yearly basis, you may earn lot more as compared to the other options.

        By the way you have great site stats.

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        • #5
          Good morning,

          I looked at this about a year ago and the conclusions that I came to were;

          1) There is no such thing as a "Rate Card"

          2) The price is changing very fast as advertising purchasers get a better grip on how advertising is working.

          There are quite a few media purchasers and if you have the patience to contact enough of them you may and only may get some useful information.

          One issue seems to be that it is not just the volume of traffic that determines price, but the mindset of the visitor; The willingness of the user to even look at adverts, their spending power, the price of the item, if the site is specialised would they be advertising mainly to existing customers, is this an advertising campaign (they want to sell product) or is it a marketing campaign (awareness not sales are important), the degree of relevance of your site, the time of the year.

          What I am really saying is that there isn't a set answer but a couple of examples from well established sites;

          http://www.camra.org.uk/media/pdf/CAMRA-MediaPack.pdf
          The Publican

          You then have to decide if you are going to dedicate the space on your page to one advert, rotate a number of adverts or show an advert a fixed number of times. If you decide to rotate or limit the exposure of your ads, you not only decrease the value to the advertiser you incur upon yourself the obligation to ensure that this is done in accordance with your agreement with your advertiser.

          If you try and offer pay per click you would need to implement some quite complex systems to avoid these clicks being misused by the advertiser's competitors, this is a well known issue. There are a number of tools that a nasty person can download that will "click on adverts" to incur costs on rivals.

          Alternatively you can look at click thru and conversion rates, work out the value of one sale for the advertiser, multiply by the number of sales that you would expect to create and make your advertising rate say 5% of these sales.

          There are no useful stats on how many sales you are likely to generate, those that are published tend to be averages but as a starting point a 1% -2% click through followed by 1%-2% of those who click through buying would seem to be a good starting point. This is 0.01% of your visitors and whilst it sounds really low think about how many sites you have visited with advertising and how many purchases you made as a result of these adverts and it makes more sense.

          So 60,000 visits = 600-1200 click through and 6-12 sales, for a 50 item this would be 300 - 600 in sales which would justify around 15-30 in advertising.

          It's very tempting to get out the spreadsheet and tweak the click through and conversion rates to get a better outcome and experience may show that you achieve better rates than this.

          If you just want to get a bit of extra revenue from your site all this may be too much of a hassle, which is why many site owners sign up to the affliate marketing agencies.

          In general affiliate marketing schemes pay commission at 2%-10% to the affliate, whilst thr managing agency takes a couple of % and charges a fee from a few hundred quid a month upwards for managing the campaign. If you do decide to go down this route you need to look at the absolute amount that you receive per sale and the number of sales that you are likely to make, rather than the commission rate.

          Its all very well a scheme offering 20% of a 1,000 sale and there are some schemes that do this, but the reality is that you would make the introduction and by the time that the customer decides to purchase, the commission period has expired so the supplier gets the sale and you get zilch.

          Bye

          Ian
          Last edited by IanSmithISA; 04-12-09, 06:22 AM. Reason: changed you to your, removed a word and added a space
          Forums are about debating pleasantly not agreeing.

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          • #6
            Its upto the webmaster as how much to charge for the advertsiments ,the above stats show the website have an average traffic of 1500 visitors per day then the web master can charge the person on month or yearly basis, you can get an idea from the website who buys or sell these types of advertisement on there websites. You can also check whether the traffic is steady nice website traffic of on a particular theme. Website owners can also can earn good amount of money with full yearly or quarterly website sponsorships . Client can also have advertisement options such as CPA network where the website owner can earn per lead nor by a click.
            Last edited by rocky123; 06-12-10, 10:45 AM.

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            • #7
              I dunno, I like the charge per click idea. If you were to advertise it on your page in the right way you could end up with a lot of people clicking on the advertised link.

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