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16 Replies Last post: Mar 8, 2008 11:08 AM by Iwrite

Pricing for Web Advertising

Sep 19, 2007 7:10 PM

Click to view SCORE70's profile SCORE SCORE70 9 posts since
Aug 7, 2007
Client has a website targeted at an ethnic community in a major metropolitan area. He has an opportunity to sell advertising space on the website itself and sponsorship of events he is staging for webcast. Quesstion is: how much can he charge for this? Is there a recognized pricing method/standard/guideline for this kind of advertising? I don't have any feel for the popularity of the site, though it is quite new so it's probably not "discovered" yet.
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Click to view Techie's profile Founders Techie 46 posts since
Jul 29, 2007
1. Re: Pricing for Web Advertising Sep 19, 2007 10:37 PM
in response to: SCORE70

Many popular websites sell advertising space based on impressions - so x dollars for X thousand impressions. The more traffic the website generates the higher the cost. However, it sounds like this website is new. It is probably more appropriate to focus on the appeal on the targeted audience this website will attract. A simple pricing model is to charge based on size of ad, placement (e.g. not all web locations on a page are created equal), and duration the ad will remain on the site. Might also be helpful if the web owner can provide design assistance included in the rate, in the event these businesses may not be able to provide the web collateral to display. I'd also encourage this business owner to track and report on the click statistics, etc. so that this concrete info can be used to attract new or returning advertisers.
Click to view SCORE70's profile SCORE SCORE70 9 posts since
Aug 7, 2007
2. Re: Pricing for Web Advertising Sep 19, 2007 11:23 PM
in response to: SCORE70
This is helpful insight, but how do I put my arms around $$$ pricing on it? Say, for example, I'm in a large market (metro population area of $5 M; target ethnic population of 750K). I want to run an ad for a week. It's a significant ad--takes up maybe a 1/8 page on the site's homepage. Probably an active ad--java enabled. Are we talking hundreds of dollars, thousands of dollars, or tens of thousands? Pay per click? Where can I go to get this kind of information?
Click to view ScubaDive's profile Founders ScubaDive 36 posts since
Jul 22, 2007
3. Re: Pricing for Web Advertising Sep 20, 2007 2:13 PM
in response to: SCORE70
From what I have seen, there is no one simple answer. Different companies have different models. Google's bidding model obvioulsy lets you adjust the price you are willing to pay based on the market and the supply and demand. Other companies want flat fees. Others want partnerships.

I think that a successful online marketing campaign still needs to fit in to an overall marketing campaign. Usually you start small, testing different avenues, and then increase based on results. It never hurts to simply pick up the phone and call. Many of the companies have sales teams that are waiting for phone calls so that they can sell the ad space. If you talk with several companies, you'll probably have a much better idea.
Click to view Marzipan's profile Founders Marzipan 21 posts since
Aug 9, 2007
4. Re: Pricing for Web Advertising Sep 20, 2007 6:30 PM
in response to: SCORE70
I like Scuba's idea. Might not hurt to call another website that is similar to see how much they are selling their online ad space. This way, you actually have a market rate data point to position your pricing more accurately.
Click to view SCORE70's profile SCORE SCORE70 9 posts since
Aug 7, 2007
5. Re: Pricing for Web Advertising Sep 20, 2007 8:17 PM
in response to: ScubaDive
Great suggestions. Thank you.
Click to view WannaBe's profile Start-up WannaBe 2 posts since
Oct 10, 2007
6. Re: Pricing for Web Advertising Oct 10, 2007 11:30 AM
in response to: SCORE70
It's been a while since your first question but i thought I might comment and help you out if you haven't already set a price.

I realize you have a very big target market, but until you prove to your customers that you can drive traffic to your site, it will be pretty difficult to ask for a high price. Now that doesn't mean you can't then increase prices as your traffic increases and you can prove the benefits of advertising with your site.

I place ads on some smaller sites and pay between $850 to $4,000 a month. $850 gets me many directory placements with a couple of small banners and text links. The homepage banner ads start to rack up the pricing. These sites get about 100k impressions a month though, which is pretty good traffic.

On a homepage placement on a newer site I would start at a couple hundred dollars for the month- $250. You can base it on a monthly basis or by 3 months. Typcially I've been asked to committ to 3 months at least, but I never want to b/c it's too long especially when I don't know what kind of response we'll get.

Good Luck,
Click to view SCORE70's profile SCORE SCORE70 9 posts since
Aug 7, 2007
7. Re: Pricing for Web Advertising Oct 10, 2007 4:09 PM
in response to: WannaBe
This is very useful information. Thank you.
Click to view PremiereMedia's profile Professional PremiereMedia 8 posts since
Oct 10, 2007
8. Re: Pricing for Web Advertising Oct 12, 2007 12:12 PM
in response to: SCORE70
What would you say would be a fair charge for set up and what should be the monthly fee for the ongoing service and bandwidth use for a link like this.

http://www.premieremedia.biz/VideoMain.html

We produced the commercial and would like to provide the link and set up for clients @ www.PremiereMedia.Biz
Thanks cb
Click to view digifut.com's profile Professional digifut.com 14 posts since
Oct 12, 2007
9. Re: Pricing for Web Advertising Oct 12, 2007 12:58 PM
in response to: SCORE70
Hello, this is my first post here, I have sports technolgy consultant company (located in Monterrey, Mexico).

I agree that you need first to stablish regular traffic, the ammount of the traffic is proportional to the ammount you can charge for ads.

I've been selling ads since the beggining but sometiems I was just doing some exchanges with other companies due my traffic was so new and it took me a year to get good traffic (100K+ monthly), now I can set the price I want on my ads.

Some regular banners I sell them at $ 200 - $ 500 depending the size and location, but I must remind you this site is in Mexico, so price are a little bit lower than US sites advertisings, you can try one price and see how the advertisers react and then adjust it.

Hope this helps.

Click to view The Expert's profile Mogul The Expert 71 posts since
Oct 13, 2007
10. Re: Pricing for Web Advertising Oct 13, 2007 9:17 PM
in response to: SCORE70
I tried Google Ad Sense. And it cost me a fortune.

Now I use Free Web sites to post events and share comments instead. My favorite is www.TheBestCityGuides.com

I still use Google analytics - a free service to track traffic to our web sites
Click to view faithsem's profile Professional faithsem 7 posts since
Oct 15, 2007
11. Re: Pricing for Web Advertising Oct 15, 2007 11:30 AM
in response to: The Expert
Hello...this is my first post here...I need to find a low cost way to promote my website. I am a company of one...I make and sell my own candles in Fall River MA and hand toold leather products...I did my website myself on bizhosting.com, but their section on advertising your website is pricey...I tried it for a couple f month with no real results. Any ideas would be of help! Thanks!
Click to view digifut.com's profile Professional digifut.com 14 posts since
Oct 12, 2007
12. Re: Pricing for Web Advertising Oct 15, 2007 11:40 AM
in response to: faithsem
Try contacting blogs from your location and tell them about your products, some of them will surely write about your company and help you spread the word.
Click to view WannaBe's profile Start-up WannaBe 2 posts since
Oct 10, 2007
13. Re: Pricing for Web Advertising Oct 15, 2007 5:09 PM
in response to: faithsem
Some suggestions:

Try searching for craft directories and getting onto them.
Se if you can do link exchanges with ohter crafters (having people put your link on their site for you putting it on yours). Also make sure you Register you site with the various top search engines, they all have a tool for free submissions.
Make sure your content on your site is easily readable by the web bots that determine if your site is a good choice for a category.
Click to view The Expert's profile Mogul The Expert 71 posts since
Oct 13, 2007
14. Re: Pricing for Web Advertising Oct 15, 2007 7:13 PM
in response to: faithsem
Create an 'Event' in your local area or online - you could post it on your web site, on blogs and on local city guides. That should get you free publicity. By the way, http://www.TheBestCityGuides.com is offering their event calendar FREE OF CHARGE - I would urge you to get that on your web site - before the offer expires.

Web calendars usually cost $500 or more
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