AdBaba - 7:28 pm on Feb 3, 2006 (gmt 0)

Pricing ad inventory is a tricky issue. In addition to what has already been discussed, you might also consider:

1) Opportunity cost: what can you get for the same ad inventory elsewhere (ex through other display ad networks or direct sales)?

2) User Experience: graphic and rich media ads are less relevant more obtrusive than text/contextual ads. This will inevitably have some implications for user experience and user retention on your site, and, in the long run, for your site’s traffic and ad revenue. To assign a price tag on this effect, try to estimate or measure how much traffic you might potentially loose (not an easy task). Especially, interstitials, audio/video and floaters might not be worth the short-term ad revenue gains for most sites.