Website Advertising Banners - Costs, risk etc

7 replies
Hi all,

I got some very good responses with a previous post here and have decided to put out an idea for feeback from anybody who can help me with my query. Apologies for the large description but I want to be clear.

Website Overview: Construction web application that allows main contractors or building clients to easily source and contact building specialists for their projects. It contains further features which are still in development.

We want the web application to have an abundance of listed construction specialists and categrories so we have decided not to charge for registrations but to offer a listing for free. This way more companies will subscribe and the web application will have a respectable amount of variety for the end-user. Too few listed construction specialists will give the impression that the website is not what it claims to be an would result in a drop-off of interest.

To cut a long story short, we have decided to go with the option of generating revenues from company advertising banners for companies who want to get more noticed than the free-listed companies. The website will contain many subpage categories and it is hoped that companies specific to a category page will pay for an advertising banner on that page. For example: End user needs to source an architect and a landscaper for one of his projects. When he selects architects, he will be brought into a subpage which lists all architects in a choosen radius of proximity to the building project. In this page we hope to have a sliding banner system with approx 15 advertising banners specifically for architectural companies. The same for landscape companies and so on. We could potentially have 60 subcategory pages and approx 15 specific advertising banners per subcategory. A rough estimate would therefore be 900 advertising banners.

I see so many conflicting opinions regarding what you can charge a company for an advertising banner per month and per year based on users to the website and would very much appreciate if some of you guys could shed some light on the following:

1) Is relying on advertising banner revenue a risky approach generally or if there is good daily usage of the website would it be a good idea to pursue this as the income option and work on developing it further as the website grows?

2) How much can you generally charge for an advertising banner per month/per year. Lets say, the website will be aimed at the Eurozone region in which there are many countries and the general daily usage of the website is good due to healthy construction growth? I thought of an approx figure of 250 Euro per year but perhaps that is way off the mark. I have been looking at advertising costs for similar websites in England, Germany, Ireland etc and the prices vary drastically. Is there a solid calculation method that would stand up in the financial section of a business plan?

3) How do you prove to a potential advertising customer the daily viewers to the website and therefore the justification for the monthly cost of their advert. Do you have to show each customer at year end the number of clicks into the category page in which they have a banner?

4) What are the best free methods for advertising Banners on a website generally?

Sorry for all the questions. I look forward to a few ideas.

#advertising #banners #costs #risk #website
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  • Profile picture of the author webmarke
    1 - I think you should rely on paid advertisers and also monetize your website by becoming a publisher for a network that pays you cpm (pay per impression)


    2- A good way to find out the correct amount to charge is to join as an advertisier and see what others are charging in your niche (depending on the amount of traffic you are receiving)

    3 -You can use to sell your adspace for you.
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    • Profile picture of the author Socrates39
      Hi webmarke,
      Thanks for the very quick response. Could you elaborate on your point 'monetize your website by becoming a publisher for a network that pays you cpm (pay per impression)`?


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  • Profile picture of the author Brent Stangel
    Most business directories work on the upgraded or premium listings.

    So, anyone can list their business free. Then you offer upgrades - images, featured in search, etc.

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    • Profile picture of the author OptedIn
      Originally Posted by Brent Stangel View Post

      Most business directories work on the upgraded or premium listings.

      So, anyone can list their business free. Then you offer upgrades - images, featured in search, etc.

      Very true. I bought 14k business listings to seed my local directory. If there's no one in your directory, it's not a directory. Period. Try calling a business owner to pitch him a paid ad in your directory. When they ask you how many businesses are currently listed and you respond with, "Congratulations! You'll be the first," or 17, 68 or 127 - it's still nothing unless you are in a very highly specialized niche.

      I have lived off of selling everything from paid listings (Bronze, Silver, Gold, Platinum), websites and videos. Once they are in the fold, they supply you with an endless stream of referrals.

      I don't spend a penny on advertising and I can't even spell SEOh.

      One of the Internet's largest myths? "Directories are dead." The only thing that's dead is the way in which most people approach the whole business model. Back-asswards. The old saying is, "You need to spend money to make money." Nothing could be more accurate than that statement when dealing with directories.

      BTW, I go to my County Clerk's Office and get the information about every person that has applied for an occupational/business/fictitious name license. How do you think they respond when you 'welcome' them to the business community by offering them a free listing in your local business directory? Especially after everyone else on the planet has called them (if they are smart enough to ferret-out the info) trying to sell something?

      The words I love to hear are: "Someone just called and offered to build a website for me and said without knowing all of the particulars that the probable cost would be $3,000 to $4,000. When I tell them that I will build them a 5 page WordPress website to get them started in their business, at absolutely no cost, I own that business for life.

      Directories and everything they generate, RULE!!!

      Thank you.

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  • Profile picture of the author Socrates39
    Hi Brent,
    Any ideas on how to determine what to charge for advertising space based on the users of a website, the country etc? I have seen certain generic formulas but many differ, hence I am not 100% sure what is the best approach.
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  • Hi Matthew,

    1) Relying on banner adverts can be considered risky from the perspective that it is an outdated form of advertising. Our advice is that if you wanna monetize while capturing the attention of the audience and not deliver static, less engaging (not to say "boring") adverts, you should consider incorporating video ads instead. We specialise in helping publishers shift towards video, so if that sounds appealing to you, check out our website for more info.

    2) Prices vary depending on geography (Europe itself is a diverse market, with different CPMs). To make it easier and squeeze as much as possible from this opportunity, you could collaborate with an SSP/ad network that will ensure you optimise the revenue.

    3) GA snapshots could be sufficient proof for what your website has to offer. Again, if you decide to use an intermediary, you don't have to concern yourself with these issue. As an example, we work with both publishers and advertisers to provide insightful data from our reporting.

    Have a nice day!

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  • Profile picture of the author JohnMcCabe
    Originally Posted by Socrates39 View Post

    Hi webmarke,
    Thanks for the very quick response. Could you elaborate on your point 'monetize your website by becoming a publisher for a network that pays you cpm (pay per impression)`?


    Since webmarke didn't answer you, here goes...

    CPM is an acronym for Cost per 1000 impressions (M being the Roman numeral for 1,000).

    It means that for every 1k times the network's ads are shown on your site, you get paid a certain amount.

    If you want to see the model in action, go to the site for any local newspaper. Watch the info bar at the bottom of your browser and count the number of ad servers that have to load before the page is complete.

    Say the current rate for CPM is $1/thousand. If you have 16 different ad networks loading, then every 1000 views would pay you $16.

    You need to show a lot of ads to make any money.
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