How to calculate the maximum you should pay for small media buys

4 replies

My plan is to put some banners on some websites with decent (but not big) amounts of traffic.

I would pay webmaster via paypal if he puts my banner on his website for 30 days but I am not sure how to calculate how much max I should pay.

Ok, I know that my banner ctr and conversion rate can be different than I expected but let's suppose I use some numbers like 0.25% ctr, 1,5% conversion rate, $30 offer payout and 150m000 impressions per month.

How to calculate how much can I pay to break even based on those numbers above?

#buys #calculate #max #media #pay #small
  • Profile picture of the author Steve B
    Did you base those numbers on some actual tests? That's really the only way to get meaningful numbers because each site your banner appears on will have a different visitor makeup. Have you asked the site owner about his audience and what they are looking for? Does his audience match the offer of your banner?

    Can you start your campaign with one month commitment and see how it goes? (You're talking about 20 cents per 1,000 impressions. Can you get that type of exposure for a targeted campaign?)

    Start small and figure out how to optimize your campaign before you scale up. ($168 gross using your numbers)


    Steve Browne, online business strategies, tips, guidance, and resources

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    • Profile picture of the author ilovric001
      $168 ? Can you please explain how did you come up
      with that number?
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  • Profile picture of the author Vijaypravin
    My Suggestion is go for Google Adwords or Facebook Ads
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  • Profile picture of the author zeus136
    The answer is simple. Always check cost per click and cost per conversion.

    If you buy 1 cent clicks and get a 1% conversion ($1 per conversion), thats better than a $1 click with 10% conversion ($10 per conversion).

    Best regards, Kathleen
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