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My full-time gig is selling advertising on a CPM basis for a major PR7 site (Don’t ask, I won’t disclose) and my part-time gig is brokering ad deals between web publishers and advertisers on a CPM basis. Trust me - marketers are willing to pay real money for real online ad space. Since before the dot-com bubble I’ve been selling ad space online. There have been some crazy-stupid times when people thought banner ads would save the world.
There were also some times when it was almost impossible to sell CPM-based advertising. Right not is not one of those times.
You may think that the Yahoos, AOLs, CNETs, MSNs of the world are the only sites that can sell ads on a CPM basis. What you may not realize is that sometimes huge sites that sell based on CPM are actually less effective than your site might be. Huge audience = general audience = lower CPMs. Conversely, sometimes lower audience = specialty audiences = higher CPMs.
But that’s not what is happening. Savvy marketers offer publishers the world as an affiliate because they want your ad space for free, and some of you give it to them. What they don’t tell you is that they understand that branding/awareness is a big part of a campaign’s success. If this weren’t the case, TV, radio and print advertising would already be dead. How many clicks/conversions do you think that billboard on I-5 gets?
Imagine the conversation, “Gee XYZ-magazine, I know that you are one of a handful of magazines reaching the consumers that I’ve built my company around selling my product to, but how about I take your best ad spot for free -- the kind that other magazines ask top-dollar for -- and IF I sell something I promise to TAKE CARE of you.” This would never happen, yet this exact thing happens every day with great web publishers.
When you do an affiliate program you are donating your ad space hoping that your affiliate has a good enough ad, a cool enough product, a good enough price with a sales force that can close the deal. You have zero control of those things.
Obviously, a site needs to have ENOUGH traffic to be worthwhile to an advertiser, but it doesn’t always have to be massive. For small sites Affiliate Programs, “Advertising Words” programs and ad networks are a decent way to generate revenue where none would otherwise exist – just don’t get stuck there. When your site gets big enough get ready to sell.
Bottom line is that the big companies are finally starting to understand the power of online advertising and are increasingly willing to pay for it. If you hate sales or don’t have an ad sales department, find someone to sell your prime space for you. Let the affiliate programs, “Advertising Words” programs and ad networks do what they are supposed to do – monetize your LEFT OVER, unsold inventory.
Any advice on how to find someone who can sell ad space, or how to sell it myself?
Before I got heavy into adsense and affiliate programs, I tried to sell space on my site to a company that offered a product that is a perfect match. I put together a proposal for a good, creative campaign at a reasonable price. With a background in radio and a dislike of banner ads, this seemed like the right way to go.
I called the company, made my pitch, called again and again... Then I tried a different company and repeated the process. Still no luck.
Then I spoke with someone who sells for a major (top 20) website. He explained that major companies don't have the time to work with any website that is not huge, and suggested I try some ad networks. I found one that specialized in my field, and another that claimed to have a "channel" for my niche, but for all their bluster, they are pretty much in the business of serving up banners, which I was trying to avoid in the first place.
All this happened about a year ago, so attitudes may have changed. I can say that going the affiliate route is much easier than trying to sell directly. What I might need is a good account executive who can handle the sales. I've never been able to find one - I know plenty of sales people, but none who are interested in selling space on a web site.
Some major corps will buy space on smaller sites, but many others may think it's just not worth the time or effort, especially if they work with an agency and have to pay agency rates for the buying/planning to get up and running on a bunch of small sites.
Many won't work with a site that doesn't or can't integrate 3rd party ad serving like DoubleClick or Atlas.
After you've been around the affiliate game for a while, you learn what works & what doesn't & a $50 - $500 effective CPM can be had if you know what merchants to promote an the kewyords to target. You have no sales people to pay and when you generate enough sales for a merchant or in the network, you can often negotiate the payout % up.
What you may (or may not) lose by running affiliate programs to generate revenue may be more than made up for in the time you don't have to spend (or the people you dont have to pay) negotiating contacts, reviewing & editing them & dealing with all the other stuff involved in arranging buys, doing Q/A, and educating your customers.
You get what you pay for. Affiliates learn over time how to maximize affiliate programs in ways that a site selling CPM inventory cannot. Ugly sites often sell really well. Affiliate sites are often "ugly sites" where merchants may not be willing to pay a premium (or anything)to advertise just because of the way the site looks. The perceptions many people have about what makes a "good site" from a sales or business point of view are often dead wrong.
There is a place for afiliate programs, AdSense, and direct sales but you as he site owner need to know how to market, what to promote and when to sell branding type placements directly to merchants instead of throwing up AdSense or affiliate programs.
If your site attracts consumers who are not in buying mode, they by all means, sell CMP or CPC based inventory if you can. If your site attracts buyers, you may be able to generate a lot more revenue via affiliate programs.
