How much should i charge a company for online advertisement on my website?
Answer:
It depends on a number of factors:
- Who is your audience and how desirable is your audience to the advertisers? If your audience are techies or those who have the propensity to purchase higher-ticket items, then you can charge a higher price as compared to an audience of students.
- What is the rate of comparative websites in your niche? You don't want to overprice yourself out of the market yet you don't want to undercharge as well
- What is the rate advertisers are willing to pay in your site? You may charge $5 per CPM and yet for months nobody's taking you on the rate even though you may get inquiries -- this implies that advertisers think your rate is too expensive. But if you charge $0.50 per CPM and advertisers are flooding in, then you may be too cheap and can afford to increase your rate.
- What is the CPM you get from other advertising vehicles? Do you run Google Adsense, and if so, what is your effective CPM rate with them? Or if you run banner ads through ad networks like Burst Media, Valueclick or Tribal Fusion, what is the CPM you're getting? You can use those values to help you gauge your rate.
Since you're just starting in the game, experiment and see what rate the market will bite. You can start at $1 per CPM and see how it goes. Other Questions and Answers: