How to Price Ads for a Website
Advertisers pay an average cost per thousands impressions (CPM) of $2.52 for display advertising on websites in the U.S., according to a May 2010 report by comScore, an organization that measures the digital world. The price you set for ads on your website varies according to factors like the type of site you have, how much traffic it gets and the rates advertisers can receive on similar sites as yours.
Other People Are Reading
Instructions
-
-
1
Evaluate the information supplied to you by your traffic analytics tool. Look at the number of unique visitors your site receives and the number of impressions it gets on a daily basis. Review the pages on your site that gets the most traffic, the least traffic, and how much time--on average--visitors stay on your site. Websites that receive higher amounts of traffic can command higher rates, and you may be able to charge more for advertisements on pages that receive more traffic.
-
2
Develop an online survey that asks your website visitors about their basic profile information, such as average income, demographics, interests and habits. Constructing this profile of your average visitor can help potential advertisers understand that they'll reach the right audience and help you get the most for your ad space.
-
-
3
Make a list of ad sizes you want to sell. Standard banner sizes on websites include 468 by 60 and 234 by 60 pixels. Set a higher price for larger banners and a lower price for smaller ones. Also, set the price for each ad according to its placement. For example, give banners "above the fold"--those on the upper-half of the page--a higher price than those below.
-
4
Consider the type of audience your site attracts. Ask yourself whether your site appeals to a large, broad audience or whether you have a niche site that attracts a specific type of person looking for particular kinds of information. You can usually set higher prices for ads on a niche site than you can on those aimed at a broad, general audience.
-
5
Decide on a pricing model for the ads, such as Cost Per Thousand Impressions (CPM), Cost Per Click (CPC) or a flat rate per week or month. The CPM model is one in which advertisers pay regardless of whether visitors click on the ads--this can be beneficial if your site receives a steady amount of traffic. The CPC model makes advertisers pay only for ad clicks that result and is a good model to use if your site is newer and not as established.
-
6
Go to websites similar to yours (in the same genre) and check out their advertising rate cards, or email or call the advertising contact listed to get the rates for the site. Develop an average advertising "cost" from these websites.
-
7
Set ad prices for your website based on your competitors' rates and how competitive you want your site to be. Take into consideration the quality of your website, its traffic and visitors, your advertising model and other factors about your site you've researched.
-
1
