Valuing and selling advertising space?

Webmaster Discussion
#1

I am trying to find out how to value advertising space. There’s lots of spammy looking “make money online” guides everywhere when I Google, but nothing that really shows what the factors of coming up with a price and selling the space to an advertiser are.

So my questions are, is there a standard way of doing it? What factors do you include? Does impressions, CPM, click-through work best and why? And if there are any advertisers on the board, how do you decide what is a fair price?

#2

Re: Valuing and selling advertising space?

Hi Anthony,

There is no standard because majority of advertising companies base now their prices on advertisers bids :

  • more traffic you have and more advertisers you catch, more click price (bid) will increase because lower bids banners are not displayed as often than higher one and all your advertisers are in competition on a same spot.

As you understand in this model (the most popular one in 2014), it’s advertiser that give a value to the click and it depends of the sales they generate with it. I can invest 1000$ on CPC campaign with no risk if I know it will make me 1500$ for example… Each advertiser test banners, landing page and analyze sales to fix their bids and increase their daily budget.

CPM model is more for advertisers looking for popularity than direct sales and is possible if you are a 100% trusted and renowned website, this pricing model is reserved to “big name”, not any webmaster or small company will risk money to don’t be even sure to get one click.

To evaluate your website, you can consider that a well designed banner displayed on a targeted website has a CTR between 0.7 to 0.8%, and a “standard” bid price, for example on Chaturbate gay part, for a 160x600 banner is 0.08$, so :

  • If you can display 100’000 banners per day
    x 0.75% avg. click rate
    => 750 clicks / day
    x 0.08$
    ===>You earn 60 $ / day

To offer advertising on your website you can do it yourself but you need a good back-office for advertisers (stats, upload banners… contact me if you need it) or subscribe as a “publisher” on an existing advertising network.

I hope I answered to your question…

#3

Re: Valuing and selling advertising space?

Thanks, yes that is very helpful.

It raises a couple of further questions actually. Do advertisers have specific requirements on where they want their adverts placed? The website where the advert is displayed dictates their minimum bid price i.e. Chaturbate want a minmium of $0.08 per click? How does as a website earner come to the figure of $0.08?

And lastly, where do I find an advertiser to sell advertising space within my niche, other than sponsors? Are there specific programs or systems for doing this particular way of advertising?

#4

Re: Valuing and selling advertising space?

There are a few services, one that just started: GayAdShop.com

But there are a couple of others too, just can’t remember what they are called. There might be some info on there about pricing. If anything it feels like each week I get another email about some company wanting to buy clicks or advertising space.

#5

Re: Valuing and selling advertising space?

[QUOTE=gaydemon_jr;151295]Thanks, yes that is very helpful.

It raises a couple of further questions actually. Do advertisers have specific requirements on where they want their adverts placed? The website where the advert is displayed dictates their minimum bid price i.e. Chaturbate want a minmium of $0.08 per click? How does as a website earner come to the figure of $0.08?

And lastly, where do I find an advertiser to sell advertising space within my niche, other than sponsors? Are there specific programs or systems for doing this particular way of advertising?[/QUOTE]

No it’s no minimum price (of course not less than 0.01$), Chaturbate display an average price (based on current active advertisers) and each advertiser can see bids / banners and click rates of others. Yes you can choose between 2-3 area and format to display your ad.

To find advertisers except “one to one” contact, you can join an “ads network” as “publisher”, such as :

Some of these let you choose your price other manage all for you…

#6

Re: Valuing and selling advertising space?

Ah right, thanks for the links. I have to say, I’d prefer to deal directly with an advertiser than use a network. Having more control over what is shown, but also building a relationship with the advertiser.

I’m not too happy about signing up to the ad networks without first seeing who they’re in bed with. I might get inside and it’s all really bad ads and just won’t work out for either me or the advertiser.