Member Avatar for kevin32

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. So what is a good pricing model for starting out? I'm looking for pricing for both PPC and CPM. Any recommendations or articles on this? Thanks.

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  • Latest Post Latest Post by doggyminder

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Direct-sold banner pricing is driven by three things: how many ad impressions you can guarantee, how targeted/valuable the audience is, and the ad placement. As pointed out, traffic and targeting matter most; as noted, networks automate pricing, but selling direct gives you control — and responsibility — for fair measurement and billing.

A simple way to set floors is to work from impressions and expected click rates. Helpful formulas:

Monthly revenue (CPM) = (monthly impressions / 1000) * CPM

eCPM from CPC = CPC * CTR * 1000

CPC equivalent of a CPM = CPM / (CTR * 1000)

Example: 100,000 monthly impressions with a $5 CPM = (100000/1000)5 = $500/month. If banner CTR is 0.3% (0.003), a $5 CPM is equivalent to CPC = 5 / (0.0031000) = $1.67.

Suggested starting floors (use these only as starting points and adjust to your metrics):

  • Very small/new blog (<50k impressions/month): CPM $1–$4; if offering CPC, consider $0.10–$0.75 with a minimum monthly spend (eg. $50).
  • Growing sites (50k–250k): CPM $3–$10; CPC $0.50–$2.
  • Niche/tech/B2B audiences or premium placement: CPM $8–$30+; CPC $1.50–$6+.
    Premium positions (homepage, above the fold, newsletter) deserve 2x–4x standard rates.

Practical terms to include: minimum campaign length (30 days), minimum spend or deposit for new advertisers, exact impression-counting method (server vs client), creative specs, and monthly reporting. Start slightly high and offer short introductory discounts; raise rates once you can show stable impressions/CTR/conversion data.

Member Avatar for kevin32

I'm asking for a suggested minimum price for both PPC and CPM ads. Thanks.

Member Avatar for kevin32

I don't think this answers my question. The price is in US dollars by the way. Thanks.

Edited by kevin32 because: n/a
Member Avatar for pgmco

How much traffic does the website get? How targeted will the ads be?

Member Avatar for doggyminder

I think you should use Google absence pay per click method.I gives your website a huge amount of traffic especially constant traffic.

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