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How Do I Determine Direct Advertisor Pricing?
Hi Garry!
My question is two-part:
1) I have been approached by an advertiser that used to target my site heavily via Adsense (which I’m not currently using), and they have asked me for pricing for direct advertising. Their product is very well targeted to the majority of my visitors I have one vertical slot open, which receives about 235,000 impressions per month.
So, how do i determine what a fair price would be ?
and..
#2) When I go back to Adsense (i’m currently beta-testing a new PPc platform), will there be any issues for me or the advertisor if we continue to work together (i.e.; instead of via Google) ?
Randy Brown asked this questions on January 10th, 2009.
Posted in: Make Money Online. Also try searching: AdSense, direct advertising
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Date/Time: 1-10-2009 22:46:55 Reference: #2130
Date/Time: 1-10-2009 23:01:50 Reference: #2131
Is there anyway to (internally) predict how many clicks you think the banner will get? My banners on GCDC have around a 1 - 2 % CTR. So in your case that would be around 4700 clicks based on 2% of 235,000 impressions.
Knowing that, what I would then do is load up your top 10 keywords that you know you get hit for in Google AdWords and find out how much AdWords advertisers are bidding for these keywords. Figure out how much it would cost your advertiser to run a similar ad using Google AdWords. If they keyword in AdWords cost $.50c / click then 4700 clicks would be $2350… You could cut him a deal and sell the banner ad for $2,000.
I wouldn’t base price on 2 % though, because the advertiser might get pissed if it doesn’t convert to well for me. You could then half that amount which would put the sale of your banner right around $1000 and to me, that is how much money I would sell the banner ad for, in my opinion.
This is the same formula I use on GCDC but I give people a really big discount. In Google AdWords the bids for “Make Money Online” is around $2.97 and with my price on my blog, advertisers are only paying a fraction of that (ave around .19c click).
Date/Time: 1-11-2009 10:24:20 Reference: #2169
Date/Time: 1-11-2009 13:37:16 Reference: #2198
I have it here:
http://www.garryconn.com/advertise-on-garry-conncom
Wanna buy?
Date/Time: 1-12-2009 20:29:04 Reference: #2366
Date/Time: 1-11-2009 12:07:23 Reference: #2183
“Don’t quote me on this but I think starting out at $.75 CPM is fair. Some go for more and some settle for less. So, at $.75 you will get $.75 for every thousand pageviews you get in a month. If you get 15000 pageviews on average each month you should charge $20/month.
Subscribers help advertisers decide but until you get a lot I don’t know if it will actually help you to raise your CPM cost. Hope that helps.”
I really like Garry’s as well.