pricing model for selling advertising space

Discussion in 'Pay Per Click Advertising' started by kevin32, Apr 7, 2011.

  1. #1
    I'm starting an article/blogging website and want to sell advertising space for banner ads. At this time, we don't intend to use any ad networks, and advertisers can not set their own price. I'm asking for a suggested minimum price for both PPC and CPM ads. Thanks.
     
    Last edited: Apr 7, 2011
    kevin32, Apr 7, 2011 IP
  2. Worthen

    Worthen Well-Known Member

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    #2
    Hi Kevin,

    Depends on:
    Vertical (topic)
    Geo of web users
    Reach (number of eyeballs)
    Eventually conversion for Advertisers will play a part

    Hope that helps
     
    Worthen, Apr 7, 2011 IP
  3. kevin32

    kevin32 Greenhorn

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    #3
    I understand Worthen. That's why I was interested in a minimum suggested price for both PPC and CPM ads, just for starting out. The price is in US dollars by the way. Thanks.
     
    kevin32, Apr 11, 2011 IP
  4. Worthen

    Worthen Well-Known Member

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    #4
    In general terms, let's say your traffic is from the USA.

    Let's break it down into quality levels
    TQ 8 - TQ 10 = $0.15 cpc minimum for starters
    TQ 7 = $0.10 cpc
    TQ 5 - TQ 6 = $0.05
    less than TQ5 = $0.01 cpc

    That's assuming you cover a wide variety of topics and some are worth more and some less.

    And where your TQ Scores will come in at is anybody's guess, but under 5 is likely and under 7 is almost certain.

    For cpm, maybe $0.30 to $0.50 for most and $1.00 and up for targeted to a vertical in demand.

    Remember advertisers not only bid on the value of a set of eyeballs, they bid on reach or number of eyeballs and that's why Google and Yahoo can get a greater cpc than you or me. Not because each set of eyeballs is of more worth, but the collective group of all eyeballs combined drives the auction up as major brands can't afford to be left out.

    Hope it helped even a little bit :)
    Good luck and peace
     
    Worthen, Apr 11, 2011 IP
  5. kevin32

    kevin32 Greenhorn

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    #5
    Worthen, this info is invaluable to those of us who are starting out. Thank you so much.
     
    kevin32, Apr 12, 2011 IP
  6. Worthen

    Worthen Well-Known Member

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    #6
    Your welcome and keep in mind that being an affiliate instead of having your own advertisers is not a bad thing. We roll out direct advertising capability in July after 11 years. Yahoo was an affiliate of Overture before buying out their upstream partner, so using feeds alone to monetize has it's place for some.
     
    Worthen, Apr 12, 2011 IP
  7. kevin32

    kevin32 Greenhorn

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    #7
    Thanks Steve. Good stuff. I'm considering the affiliate option.
     
    kevin32, Apr 12, 2011 IP