Banner Ad Prices

What should I Pay?

[snowfox121]

I hope I'm posting this in the right area. I am negotiating a small banner ad on another site highly relevant to my own. They claim to get 80,000 visitors a month. They rank #3 for a search term that returns about 2 million results. My usual ranking for that term is #11 - #16, but this month Google has screwed up and moved me to #55. This is a critical month for my web business, I am trying to take some measures to moderate Google's error.

What is a reasonable amount for me to pay for a very small banner on the other site's page? (Ad is about 1.5 inches wide and 2 inches tall)

[derekwong28]

There is no way we are going to pay anymore for banner advertising unless through pay per performance.

Our clickthrough rates through some selected top sites was 0.4%. The conversion rate was around 1 in 100 even from these top sites.

[Essex_boy]

I think id offer 20th of a cent per impression (costs $160 pm)or put or a commission offer in.

[snowfox121]

Thanks for your suggestions.

I offered them $150 a month and they turned it down, so I'll pursue other avenues.