I'm interested in earning a decent income from selling ads on a site specialising in a niche market. But all I seem to hear about is CPM, CPA, or something else which is related to traffic volume.
My view is that you can sell advertising based on traffic quality i.e how well you rank for a keyword phrase or phrases. If that phrase is lucrative (and this can be demonstrated by looking at the number of Adwords ads triggered by that phrase search, and their CPC), then you have an attractive option for potential advertisers.
If you also have stats from your own site that reveal how many UVs you get for that lucrative phrase, you can then come up with a value for that traffic.
My preference would be to set a fixed/flat monthly rate, which you could change depending on how your rankings and traffic develop from month to month.
I wondered if anyone has tried this or thought about it? Or is is just a non-starter?