Banner ad RatesPrices for Banner Advertising
Monetization of your blog: Calculate your banner ad prices
In spite of the growing prevalence of new ad formats such as virgin ad and program ad, the banner is still one of the most common ad formats, and it is usually the first way a blogsman tries to monetise his blogs when he starts. Banner ad is essentially a trademark that pays you to post your picture on your website.
But even if you want to try banner advertising, how do you rate it? When I first monetized my blogs, I had no clue what I should bill for banner ad spaces. With hindsight, I can see why other modeblogger hesitated to disclose their prices.
Your calculations depend not only on your audience, but also on your business, your market share, your reputation (word of mouth, news coverage and popular media), your personal web presence (SEO) (do you appear in web sites for words the brands want to be known for?), and some things you don't know such as fitting and time.
And with all these things in mind, how can any blogsmith, especially one who's just started, know what to compute? A banner ad's perfect point of sale is a low enough point to actually be selling (ideally you're almost always out of stock ) but high enough to maximise your sales and - importantly - not depreciate your franchise.
A lot of blogs, especially when they are just beginning to advertise, are underchallenged. This is a dilemma both for you and for other blogs. A shortfall can mean more advertising sales for you in the near future, but it makes it more difficult to actually get what you are valuable in the long run.
Undemanding also affects other blogs by reducing the current charge and making it more difficult for anyone to advertise. Briefly, it is in all of our interests that you have a good understanding of what a banner ad in your blogs is worth. What is it? While there are several available ways to measure banner ad rates, whichever way you use, it should be sufficiently robust to take into consideration issues such as ad sizes (larger advertisements typically charge more than smaller ads) and ad placements (ads over the crease typically charge more than advertisements under the crease).
Prior to even starting to offer advertising sites, I suggest you either place an advertising ad in one of these areas or work with a trademark you want to trade for one. Knowledge of information such as click rates and order rates (also known as purchases) is proving invaluable to your ad sales effort, either as a complement to your advertising kits, or as part of an oral conversation with a store if you convince them to promote you.
CPC ( Costs per Click) and CA ( Costs per Action/Acquisition or Sale...basically an Associate Arrangement). Furthermore, this article is based on the assumption that you sell your advertising directly to brand owners and not through a blogs advertising platform or other third parties. Of course, the simplest way to find out your prices is to get a copy of another blogger's press kits (preferably a blogger of the same caliber and in the same alcove as you) and simply copy its ad prices.
It doesn't really tell you how to set your own ad rates, but it can help you get on. There is also a point of contact (i.e. you can talk smartly about what other blogs are uploading in your niche). Another way to calculate your ad rates is to calculate $1 per 1,000 page impressions per months.
That is the way I used when I began to advertise, and I liked it for three things. First of all, it's effortless to find out How this is done is quite straightforward. When you receive 25,000 page impressions per months, a banner ad will cost $25. In fact, some blogs even decide to fix this price at $0.75 or $1.25 for your CPM. What is more, the price of the stock is still at $1.25 or $0.75.
Strangely enough, if you are growing, you may be asking a little less than $1.00 per 1,000. When you receive 500,000 page impressions per months, your industry may not be able to sustain $500 advertising for you. The third and last (for this item at least) way to charge the ad price is to take your everyday visitor and split by 10.
It works particularly well if you are selling short-term advertising spaces (in the order of per diem or per week) because you can maximise your return on investment over this shorter amount of timeframe. You have probably found that this methodology comes out at a higher per month payment than the one before. As soon as you have found out how to get your rates, it is about making them.
A few blogs are offering rebates or bonuses for longer-term subscriptions or quick extensions. Others charge less for an Etsy design than for a domestic or international company, for instance. What prices did you set and what kind of guidance would you give to blogs considering banner sponsors?