Forum Moderators: skibum
Cheers,
Dirk
You might start out telling the prospect that your CPM is $30 -- and, thus, if you delivered 3,000 page views per day, your client would pay $30 per day.
You might want to negotiate a monthly rate of, say, $800 on a three-month contract. Then, at the end of three months, you can renegotiate based on traffic and whether the client seems pleased with the results so far.
There are no hard and fast rules, except that you want to charge as much as you can and the client wants to pay as little as possible.
Would an ad on an inside page command a lesser fee than one placed on the home page?
How the heck do you determine in the first place what to charge for an ad?
Thank you.
Is the home page of your site the most popular? Or are other pages more frequently visited?
I have one advertiser with banner ads on 26 of the 1600 or so pages on my site. That advertiser runs banner ads on pages on my site that offer information about his products.
Thus, the people who view those 26 pages are people interested in that advertiser's products. The banner ads offer a free catalog.
He pays me $1200 a year for the ads on those pages, which works out to roughly fifteen cents per click.
When the advertiser first contacted me in late 2005, he was only interested in being on the home page of my site. I convinced him that it was in his interest to be on pages other than the home page (IOW, "his" pages).
1. a tenancy deal: charge a set price for placing the ad on your site for x days/weeks/months and a set price for sending it out in the newsletter.
If you charge a good price, this is probably the best deal for you, as it's not actually tied to the amount of traffic and you will be guaranteed pay. The downside is that the many of the savvier online advertisers want to pay for what they're actually getting so are not likely to want to go that way.
2. CPM deal as was suggested above. This is still a good deal as you will be paid according to the ad views.
3. CPC and CPA deals - avoid those if you can, as they mean you have to wait for the ad viewers to do something before you get paid (i.e. click on the ad, sign up to the service/buy a product, etc.)
In my experience as a media buyer, people tend to make up whatever price they want. Usually there is a "rate card" (i.e. a totally made up price that's far too high) and then they "knock a bit off" to make the deal "fairer".
Deals made directly with a site are generally more expensive than those made via a network, so you can account for that.
We were offered a £2000 or so tenancy deal by a site a while back (which I turned down, as we don't buy on that basis), for placing an ad on their home page for a month. They had around 2000 uniques a day.
To value your traffic, think about your standing in your niche market, the level of targeting you can give the advertiser and the relevance of the products the advertiser wants to sell.
