17 {{ upvoteCount | shortNum }}
17 {{ upvoteCount | shortNum }}

Website Advertising - How much can you charge?

by Socrates39
10 replies
  • ECOMMERCE
    • |
Hey all,
I got a nice bit of feedback for my last post in another forum but it didn't hit the nail on the head. Maybe one of you smart guys could offer a few words of wisdom. Quite terse: how do you logically calculate the rate that you can charge a company for advertising (i.e. company banner) on your website. Of course, I appreciate there are many factors at play e.g. amount of users of your website, country, product etc. Is there however a 'written-in-stone' or at least a near to such formula that a developer can use to calculate potential revenues from advertising space on his website?

Look forward to your feedback.

Matthew
#advertising #charge #website
Avatar of Unregistered
  • Profile picture of the author dave_hermansen
    I'd check to see what other websites in a similar niche, with similar traffic are charging for banner ads on their sites. That's the only way to know for sure and to make sure you are competitive but not underpriced.
    Signature
    StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
    My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
    {{ DiscussionBoard.errors[11206536].message }}
    • Profile picture of the author Socrates39
      Thanks mate. Fair point. I just hate the though of having to spend hours appraising competitors in all EU countries but it would be a worthwhile task in the long-run.
      {{ DiscussionBoard.errors[11206781].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by Socrates39 View Post

        Thanks mate. Fair point. I just hate the though of having to spend hours appraising competitors in all EU countries but it would be a worthwhile task in the long-run.
        Unfortunately, the only real answers to things are usually data driven and seldom is anything worth doing easy. Going the extra mile is often what separates the successful from those who are not.
        Signature
        StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
        My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
        {{ DiscussionBoard.errors[11207265].message }}
      • Profile picture of the author dsimms
        dont be over dramatic...

        check 5 related sites that are actually
        worth visiting...

        then start off with a price...

        If you have quite a bit of traffic, and no one buys
        in a month or so, then it could be no one is interested
        in advertising, or your price point maybe too high....

        Just because you have traffic does not mean that
        all of your traffic will be interested in advertising...

        If you are selling guest posts, then you may easily
        get by charging $60-$100 (depends on how popular
        you think your site is, and supply and demand...)

        keep testing by upping your price every now and then...
        once people stop buying, then you know you have reached
        the end of what your traffic is willing to pay.....

        It is not rocket science...
        test, test, test....
        {{ DiscussionBoard.errors[11208182].message }}
        • Profile picture of the author Socrates39
          Thanks buddy. I hear everything you are saying and agree 100%. Only draw back is; I need to develop a business plan cash-flow for a funding program. That means, I need to be able to show 'in advance' what my website's projected revenues will be. If it were simply a personal endeavour, then I would go in with the same approach you suggested, i.e. test the water and develop the price according to demand. The website will also have EU coverage so prices the customers are willing to pay in the market will vary from country to country. But I think I will just have to be bold and throw caution to the wind with an average estimate at this stage. Not too high and not too low. Matthew
          {{ DiscussionBoard.errors[11213760].message }}
  • Profile picture of the author Kat Aff
    compare your self with other sites on your nice, you can use similar web for it.
    As an other option you can work with advertisers on performance basis or Revshare
    {{ DiscussionBoard.errors[11211582].message }}
  • Profile picture of the author Socrates39
    Hey Kat Aff....anymore info on performance basis or Revshare? My internet marketing knowledge and awareness of contacts and avenues in this field is pretty basic. Matthew
    {{ DiscussionBoard.errors[11213761].message }}
  • Profile picture of the author Kate H Smith
    Banned
    I agree with 'dsimms' here.

    Just check the websites and charges of your competitors. This will hand you a perfect idea. Besides, you can introduce some packages too in order to get more advertisers.
    {{ DiscussionBoard.errors[11213774].message }}
  • Profile picture of the author Socrates39
    Thanks Kathleen. I have seen this formula before or something similar. I think you wanted to give me more info regarding conditions that can possibly change this calculation (Hers are some of them.....) ?.
    Matthew
    {{ DiscussionBoard.errors[11221505].message }}
  • Profile picture of the author Tedel
    Don't try to charge too much. You see, from your point of view, advertising a business could be a fair way to make money from your website.

    From their point of view, however...
    • You are one of the about 120 websites they are trying to advertise on
    • They are trying to save money compared to advertising on AdWords or Facebook
    • Banner ads have a really low click-through rate (about 1 out of 10 thousand impressions)
    • Many users have ad blockers these days

    ...and the list goes on.

    So, if I were to buy advertising from you, I would like to know the following:
    • How many people see your site a day
    • How do you guarantee me the ad will not be removed after a few days
    • How many clicks I get from your advertising space. Can I see reports in real time?
    • What are you doing to prevent click fraud

    Take a look at Project Wonderful. It may be an option for you.
    Signature
    Author of Heptagrama. PM for my SEO service offer.
    {{ DiscussionBoard.errors[11222977].message }}
Avatar of Unregistered

Trending Topics