Preserved Topic: AD rates

Yo!

I'm looking for some good info on setting advertising rates for banner and button ads. Any help would be greatly appreciated.

Thanks!

A lot of it depends on traffic which correlates to how much people are willing to pay. I remember one guy that was charging $75/month for a banner, and I remember another guy that charges $200/2-weeks. I think the trick is to start a little low, then work your way up.

I can't imagine how much those mini-camera folks were paying for pop-ups on Microsoft's site. That's gotta be like 30 secs of Super Bowl 1/2 time or something.

I wonder how much Doc would want for an Asylum pop-up? Hmm... First and second born? Biological immortality?

Gimme a couple of hours.

I've got a few documents at home from a guy I know that worked at a media agency. (Of course it's prices adapted for the Swedish market, and about 1 yo)

I have been working with advirtising for some time now through banners and the like.

Advirtising is a very tricky subject.

Most stuff is now based on either CPM (Cost per thousand impression) or CPA (Cost per action).

CPC (Cost per click) has gone out the door. You can still do cost per click stuff, however, it is not really worth it. When you pay cost per click the highest you would want to pay right now would be a penny per click. I have seen some as hight as 9 cents. I always advertise them when they are that high, but I really don't think that it is worth while to pay that much.

CPM is alright, you can pay from .10 to .40 for CPM advirtising. It is an alright deal. Although you really do not know what you will be getting.

Your best bet is CPA. You want to increase you sales or what not, so you design a system so that when someone from a given site follows though on the set procedure you pay them.

This is normally done as a percentage of the sale. Say from 1% to 50% of the sale or a set dollar value. This depends a lot on what would be fair.

If you can get a ration of 1 click to 1 sale then you can give them a rather low portion of the sale, say .10 of whatever you make. As the ration declines you will want to decrease the payout. If it is a ration of 1/100 then you might give them $1 per sign up.

The easiest way is to give a percent of the sale. 10% is normally good, and does not need much monitoring.

If you are looking to make sales or to gain subscribers or have a user perform an action on your site then CPA is your best bet.

If you are simply looking for more visitors then you would want to go with CPC or CPM.

You will normally have to work this out with the person you are advitising with. If you plan on doing this 1 on 1 without an intermediary you would probabally be best with a CPM banner ad, which would be based on the traffic of the site you are working with. And try to negotiate for a really low rate.

If your going through a program CPA would be your best bet. They can walk you though the set up and it is the most profitable for you.

Some programs that are used a lot: http://www.cj.com --> many have been pulling away from CJ recently. Lots of reasons.
http://www.advirtising.com http://www.fineclicks.com http://www.fastclicks.com

You can also start your own affiliate program:
http://www.myaffiliateprogram.com --> reccommended http://www.affiliatefuel.com

I guess Warmage covered much of what I was going to say.

From what my friend told me CPM-prices can vary somewhat (up to 50%) depending on how well the siteowners know their audience.

For example placing banners on yahoo.com would result in a lower CPM-price than if you place them within a specialised community-site.

This is for two reasons.

1. Known visitor base = surgical placement = higher attention (in theory that is)
2. Smaller sites = lower traffic = higher penetration rate (ie. you reach a larger number of the site audience with fewer placements) = higher price

Buying 50k impressions on yahoo.com reaches a fraction if it's visitors, and you have no idea if you reached the right ones.
Buying 50k impressions on ozoneasylum would reach all its active visitors, and you even know something about the visitors demography and interests.

Thus the CPM price on yahoo should be about 50-60% of what it should be in here.

Hope that made sense

On my companies website we charge $150 a week for a button. We were going to go with a CPC but that shit is too hard to track correctly.

I don't think that you would want to start out that high but then again you don't want to shoot yourself in the foot either.



Later,
C:\


~Binary is best~

This is all great info. When I did Exchangestuff.com years ago, advertisers started coming to me with the idea of advertising. I didn't know anything about what to charge back then ('98 or so). So I told them "make me an offer" and was stunned at how high they were offering (hey, I was a newbie). So this time I figured I would ask you guys. I'm starting to look around for a PHP/MySQL based advertisement application that I can use now. But a customer came to us and said "Hey, why don't you do advertising on the site, and keep all the money? - If it offsets your costs, cool." Traffic on the site is steadily increasing, so, what the hell, right?

CPrompt -

is that a static button on the site, or a button that is in rotation?

Just curious.

Looks like CPM is the way to go.

Popups on the asylum = everyone's worst nightmare

Pugzly:

That is just a static button pretty much. Usually the advertiser provides us with an animated gif.

You can check it out if want. I don't do anything but sell the advertisements they actually have a design department in a different state that handles the site. Here it is: http://greensboro.careerweb.com It is the buttons on the right hand side of which I am talking about.

Later,
C:\


~Binary is best~

C:\ -

Thanks for the info. We're going to be doing one 120x90 and one 468x60 on each "normal" page, with a 468x60 on the "specialty" popped pages. Text advertising will accompany the newsletters and such. CPM is probably what we're going to do. No formal decision yet, but we're starting to line things up.

Thanks to all for the info. If anyone else would like to post more info, by all means....

Pugzly:

No problem. I wish I could give you more info but unfortunatley I just know more about selling the things than what to charge for them.

We just kind of look at: This many people come to our website a week and you pay this much per week so you are only paying X amount of dollars for Y amount of people to see you ad. Know what I mean?

Good luck and did I see something about a Gurus' newsletter or am I misreading that?

Later,
C:\


~Binary is best~