considering banner advertising on a website-newsletter -fair price?

was titled: Quick question

[aek]

I am new to buying online advertising and I've been offered some advertising on a website targeted to my audience but I haven't got a clue if what they're offering is competitive. They have offered me 50,000 banner impressions and an advert in their bi-weekly newsletter (135,000) for $600. Does this seem reasonable in the present climate as I have been having a look around and the CPM websites offer seems to vary wildly between about $1 to $20.

Thanks for your help.

[rcjordan]

It seems pricey just looking at the raw numbers, but if it's very targeted I'd say it's in range. I charge $8 to $15 CPM for text box ads on my sites.

[JamesR]

That kind of depends how good your banner is at drawing clicks and then how well you convert those clicks. I would just offer to pay them by click instead of impression. It is easily trackable and they should be able to give you more competitive rates than overture.

btw, have you checked how much traffic you could get from overture for $600? At .05 bids, you could get 12,000 clicks, probably more than you would get with 50,000 banner impressions and the newsletter.

[aek]

Thanks for the advice. RCJORDAN you say that the figure quoted seems a bit pricey but you quote that you sell advertising at $8-15 CPM so by my calculations the banners alone should cost around $500. The guy initially offered me the newsletter only for $500 which I decided was too expensive and then he thru the 50000 impressions in as a sweetner. So the webmaster seems to consider the 135000 subscription newsletter the real selling point. What kind of response do you think I can expect from an advert in a newsletter. Obviously I realise a large proportion of people won't even look at it. This is the no1 website for my website topic so I'm quite keen to advertise on it. Any information you can give me would be really appreciated cos this is the first time I have bought online advertising and I really don't have a clue. What strategy do you use?

[brotherhood of LAN]

aek

newsletters usually charge more for ad space because usually they are specific to one subject, ie WMW newsletter, would be top notch for an SEO like yourself to have an ad in there, as opposed to say, a newsletter about widgets. Naturally :)

I wouldnt pay what your getting there. It all depends on your ROI no doubt.....

Id rather pay $100 to 6 sites for some nifty - permanent "ads"/links

[rcjordan]

>seems a bit pricey but you quote

You added something with your last post; This is the no1 website for my website topic -that goes a long way in justifying $10 CPM. But JameR gave an excellent way to "appraise" the ad's value, what would it cost you on Overture if you buy it by the click? Figuring a hefty 5% CTR on the banners (2500 clicks) and another (liberal?) 8% CTR on the newsletter (10,800) comes out to $665 at .05/click. Adjust that by using the most current Overture bids for your primary terms, and you should be able to guage this campaign's fair market value better.

>What kind of response do you think I can expect from an advert in a newsletter.

I'll have to leave that open to someone more familiar with newletter ads. I've seen CTR quoted as high as 20% and as low as 2%

>What strategy do you use?

Sorry, I did try Overture once, but other than that, I haven't bought any web advertising.

(edited by: rcjordan at 9:25 pm (utc) on April 23, 2002)

[NFFC]

aek, sometimes it's worth paying the money just to "know". If it was the number 1 website in my area I'd pay, at least then you will know for sure if they are a good fit for you.

[Bogglesworld]

One other thing: Ask them where the banners will be placed. A lot of sites have two banners per page: One, above the scroll, and the other, below the scroll. 50 000 below-the-scroll banners is worth about $5 unless it's next to some really decent content.

[sylvie]

I usually go to www.webmasterbids.com to get my advertising. At least there, you can comparison shop. It is an online auction for advertisers. I have bought ads there before but never sold any. As a buyer, I think it is great.