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Unread 04-07-2011, 06:09 PM   #1
kevin32
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Default pricing model for selling advertising space

I'm starting an article/blogging website and want to sell advertising space for banner ads. At this time, we don't intend to use any ad networks, and advertisers can not set their own price. I'm asking for a suggested minimum price for both PPC and CPM ads. Thanks.
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Unread 04-11-2011, 04:03 PM   #2
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Any suggestions? I understand that there are several factors to consider such as ad size, placement, traffic, etc. So I'm asking for a suggested minimum price for both PPC and CPM ads (in US dollars), just for starting out. Thanks.
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Unread 04-11-2011, 05:47 PM   #3
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You probably know this already, but you need a lot of traffic before you will make any real money.

You can start somewhere at around $0.10 per click but it really depends on the type of website and quality of the traffic. it might take 25 clicks for one conversion at best, so multiply that by $0.10 and that is what the advertiser pays to sell one of their products. If their product costs more than $2.50 they would be more than interested in your ad space, as long as you have sufficient traffic to make it worth their while.

Saying that, It can go anywhere from $0.01 to $80 per click depending on the market. The best thing to do is look at the google keyword estimation tool and see broadly where your market sits and use that as a guide.

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Unread 04-12-2011, 05:29 PM   #4
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Thanks Dave. Good info for starting out. What's your take on CPM ads?
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